The NIL landscape has changed dramatically since the NCAA first opened the door to athlete compensation in 2021, and the pace of change has accelerated. The landmark House v. NCAA settlement, which received preliminary approval in 2024, fundamentally restructured the economics of college athletics — introducing revenue sharing between schools and athletes, creating new NIL deal disclosure requirements, and reshaping the role of collectives. For Nebraska athletes, their families, and the businesses looking to engage in NIL partnerships, keeping up with this rapidly evolving legal framework is not optional — it is essential for making smart, compliant decisions.
This guide provides a comprehensive overview of the current NIL law landscape as of 2025 through 2026, with specific attention to Nebraska state law, the House settlement framework, and practical guidance for each group of stakeholders.
Nebraska's NIL Law: The Foundation
Nebraska enacted its NIL legislation in 2021 (LB 962), becoming one of the first states to allow college athletes to profit from their name, image, and likeness. The Nebraska law permits athletes at Nebraska institutions to enter into NIL contracts, requires athletes to disclose their NIL agreements to their institution (though not necessarily the specific terms), and prohibits institutions from preventing athletes from entering into NIL deals as a condition of scholarship or participation.
Key provisions of Nebraska's NIL law that remain relevant in 2025 and beyond include the prohibition on using official team logos, trademarks, or intellectual property in NIL deals without institutional consent, the restriction on certain categories of deals including gambling, tobacco, alcohol, adult content, and products prohibited by institutional policy, and the disclosure requirements that give institutions visibility into which athletes have active NIL agreements without necessarily revealing the specific terms.
The House v. NCAA Settlement: What Changed
The House settlement, covering claims through 2024, established a framework for direct revenue sharing between Division I schools and their athletes, funded through a school revenue sharing pool projected at approximately $20 million per school annually in the first year, growing over time. This revenue sharing, administered through a new compensation model under NCAA rules, represents a fundamentally different type of athlete compensation than traditional NIL deals and has its own compliance and tax implications.
The House settlement changed the economics of college athletics permanently. Understanding the difference between traditional NIL compensation and the new revenue sharing model is now essential knowledge for every serious Nebraska athlete and their family.
One of the most significant changes from the House settlement framework is the introduction of NIL deal disclosure through a centralized clearinghouse. Under the new framework, NIL deals above a specified threshold must be disclosed to the clearinghouse, which reviews deals to identify those that may violate rules against using NIL compensation as a recruitment inducement. This means that deals which appear designed to attract an athlete to a particular school — rather than reflecting genuine commercial value — face heightened scrutiny and potential disqualification.
What Nebraska Athletes Need to Know
For athletes currently competing at Nebraska institutions or recruits considering Nebraska schools, several practical considerations stand out. First, keep detailed records of all NIL income, including the nature of the deal, the dates of performance, and the amounts received. NIL income is taxable, and many athletes are surprised to learn they owe self employment taxes in addition to income taxes on their NIL earnings. Working with a tax professional experienced in athlete income from the beginning of your NIL activity will prevent unpleasant surprises.
Second, have every significant NIL contract reviewed by an attorney before signing. The most common problems in NIL deals — overly broad exclusivity provisions, unclear deliverables, ambiguous payment terms, inadequate termination rights — can be identified and addressed in the contract drafting stage far more easily than they can be resolved after a dispute arises. Do not assume that an agent or NIL platform's standard form contract is in your best interest.
Third, understand the distinction between NIL compensation and the revenue sharing payments coming from your institution under the House settlement framework. These are different types of income, administered through different channels, with different compliance requirements and tax treatment. Conflating them creates both compliance risk and financial confusion.
What Families Need to Know
Parents and family members of college athletes play a crucial role in helping athletes navigate the NIL marketplace, but they also need to be careful about inadvertently running afoul of NCAA rules. Agent regulations continue to apply — there are rules about who can represent athletes in NIL deals, and using a family member as an "agent" in certain capacities can create compliance issues. Understanding the role that parents can and cannot appropriately play in negotiating NIL deals is important for protecting the athlete's eligibility.
Families should also be alert to the tax implications of NIL income at the household level. If the athlete is claimed as a dependent, their NIL income may affect the family's overall tax situation. If the athlete is no longer a dependent, they bear full responsibility for their own tax filings. Early planning with a tax professional can help the family navigate these questions before a problem develops.
What Businesses Need to Know
For companies considering NIL partnerships with Nebraska athletes, the clearinghouse framework introduces new compliance obligations. Deals above the applicable threshold must be disclosed and may be reviewed for compliance with rules against impermissible inducements. This means that companies structuring NIL deals as recruitment tools — for example, a deal that is contingent on the athlete attending a specific school — face serious legal and reputational risk.
Companies should work with legal counsel to ensure that their NIL deals are structured around genuine commercial value: authentic engagement with the athlete's brand, alignment with the company's marketing objectives, and compensation calibrated to the athlete's actual market value rather than their athletic performance or school attendance decisions. Well structured NIL partnerships deliver real business value and carry far less regulatory risk.
Horgan Law Firm's NIL practice group advises athletes, families, and companies throughout Nebraska on NIL deal structuring, compliance, and dispute resolution. As the rules continue to evolve, having legal counsel who stays current on developments in NIL law is one of the most important resources available to anyone navigating this space. Contact us to discuss your NIL situation.
