The landscape governing college athletes' ability to profit from their name, image, and likeness continues to evolve at a pace that challenges athletes, institutions, collectives, and advisers to keep up. The NCAA's ongoing expansion and revision of its interim NIL policy represents one of the most significant shifts in the history of collegiate athletics, and the practical implications for Nebraska athletes and the institutions that serve them are substantial. Understanding where things stand — and where they are likely heading — is essential for anyone navigating the NIL space.
Background: How We Got Here
Prior to July 2021, NCAA rules strictly prohibited college athletes from receiving compensation for the use of their name, image, or likeness. That prohibition effectively prevented student athletes from entering into endorsement agreements, appearance fees, social media partnerships, and the full range of commercial arrangements available to professional athletes and other public figures. The NCAA's interim NIL policy, adopted in 2021 in response to a combination of state legislative action and the Supreme Court's unanimous decision in NCAA v. Alston, represented a fundamental departure from the prior regime. Since that initial adoption, the policy has been expanded and clarified in a series of subsequent updates.
Key Features of the Expanded Interim Policy
The most recent expansions of the NCAA's interim NIL policy address several areas of particular importance to Nebraska athletes. The policy continues to permit athletes to engage in NIL activities consistent with state law, meaning that athletes in Nebraska can take advantage of the opportunities available under Nebraska law without fear of NCAA enforcement action, provided they comply with the applicable requirements. The expanded policy also provides additional guidance on permissible third party involvement, including the role of NIL collectives — organizations formed specifically to facilitate NIL opportunities for athletes at a particular institution.
NIL law is still developing rapidly, and what is permissible today may change as the regulatory framework evolves. Athletes and those who work with them need counsel who understands both the current rules and the direction of travel in this area.
What Nebraska Athletes Need to Know
For Nebraska athletes, the key practical implications of the expanded interim policy include the following. First, athletes can enter into legitimate NIL agreements with third parties, including businesses, brands, and collectives, as long as the arrangement is for genuine NIL use and not a disguised form of pay for play. Second, the value of NIL agreements must be commensurate with the market value of the athlete's NIL — agreements that are clearly above market value may be scrutinized as improper recruiting inducements. Third, athletes should be aware that their institutions may have NIL policies of their own, including requirements to disclose agreements or restrictions on certain types of endorsements. Fourth, tax implications must be addressed: NIL income is taxable, and athletes who receive significant NIL compensation should work with qualified advisers to understand their tax obligations.
The Role of NIL Collectives
NIL collectives have become a significant feature of the NIL landscape at major athletic programs across the country, including Nebraska. These entities pool resources from donors and boosters to create and fund NIL opportunities for athletes. The regulatory treatment of collectives remains one of the most actively contested issues in NIL law. The NCAA has indicated that direct payments from boosters to athletes, even if labeled as NIL compensation, may be impermissible, but the line between permissible collective activity and impermissible inducements is not always clear. Athletes who are approached by collectives should seek legal advice before signing any agreement to ensure that the arrangement complies with applicable rules and that their own interests are protected.
Contract Review and Legal Representation for NIL Deals
The NIL agreements that athletes are asked to sign vary widely in their quality, fairness, and legal implications. Some agreements contain provisions that could restrict the athlete's freedom to pursue other opportunities, grant overly broad rights to the counterparty, or expose the athlete to significant liability. Athletes are often presented with these agreements under time pressure and without the benefit of legal counsel. Horgan Law Firm offers NIL contract review and legal representation services for Nebraska athletes, ensuring that clients understand what they are signing and that their interests are protected in every NIL transaction. Contact us to discuss how we can help you navigate the NIL landscape with confidence.
