NIL Deals in College Football Recruiting: A New Era of Compensation and Competition

The landscape of college football recruiting has undergone a seismic shift with the advent of Name, Image, and Likeness (NIL) deals. These agreements, which allow student-athletes to earn money from their personal brand, have introduced a new dimension to the recruiting process, raising both excitement and concerns about the future of the sport. This article delves into the intricacies of NIL, its impact on recruiting, and the challenges and opportunities it presents.

Understanding NIL: Empowering Student-Athletes

NIL stands for Name, Image, and Likeness. It refers to a student-athlete’s right to earn money from their personal brand, including their name, photos, videos, voice, and public persona. The NCAA NIL rule, effective July 2021, allows college student-athletes to earn money from their name, image, and likeness without losing eligibility. For example, if a business uses an athlete’s photo or name to promote a product without permission, the athlete may have grounds to claim a violation of their NIL rights.

With NIL, high school and college athletes can get paid for things like social media posts, brand deals, selling merchandise, and more without losing their NCAA eligibility to play.

The Rise of NIL Collectives

NIL collectives are support networks for college athletes where donors pool together money to compensate athletes for their name, image and likeness. NIL collectives are made up of fans and other donors for a specific team or school; the organizations aren’t actually part of the schools themselves. These collectives play a crucial role in facilitating NIL deals for athletes, connecting them with businesses and opportunities.

The Impact of NIL on Recruiting

The introduction of NIL has dramatically altered the college football recruiting landscape. One of the most significant examples of this transformation is Bryce Underwood, the No. 1 recruit in the 2025 class, who flipped his commitment from Louisiana State University (LSU) to the University of Michigan. Underwood's decision was reportedly influenced by an NIL deal averaging $2.625 million per year, potentially reaching up to $12 million.

This case highlights how NIL deals can be a major factor in attracting top recruits. Programs with strong alumni networks and financial resources, like Michigan, can offer lucrative NIL opportunities, giving them a competitive edge in the recruiting process.

A groundbreaking new study published in Management Science demonstrates that NIL policies actively enhance competitive balance and broaden opportunities for athletes. The study found that NIL has led to a wider distribution of talent across college programs, directly benefiting athletes who seek to maximize their brands and earning potential. Contrary to initial predictions, NIL opportunities empower lower-ranked football programs to attract higher-quality recruits, particularly among 5-star and lower-ranked 4-star athletes. This shift provides more athletes with greater leverage and diverse options, ensuring that talent does not solely concentrate within a select few elite institutions.

NIL Activities and Examples

NIL deals encompass a wide range of activities, including:

Appearing in commercials: Athletes can be compensated for appearing in advertisements for various brands.
- Example: Kentucky’s Clara Strack in an Intuit TurboTax NIL commercial.
Licensing likeness for products: Athletes can allow manufacturers to use their image on products.
- Example: Clemson QB Cade Klubnik action figure deal.
Posting as a brand ambassador: Athletes can promote brands on their social media channels.
- Example: LSU gymnast Livvy Dunne and Crocs partnership.
Wearing branded gear: Athletes can wear and promote specific brands during games and practices.
- Example: South Carolina sprinter JaMeesia Ford NIL partnership with HOKA.
Coaching at camps: Athletes can earn money by coaching or making appearances at sports camps.
Showing up at events: Athletes can be paid to appear at local events and interact with fans.

The Importance of Compliance and Disclosure

While NIL offers exciting opportunities, it also comes with rules and regulations that athletes must follow to maintain their eligibility. Any NIL deal valued at more than $600 must be reported to the NCAA through a new platform, called “NIL Go.” It is crucial for student-athletes to consult with NIL compliance officers at their schools or legal advisors before signing any deals.

Athletes need to remain eligible, show they are making progress toward earning a degree and submit/report any deal through for review (as required). It's important to confirm the deal has a valid business purpose and compensation is within a fair market value.

The "Street Agent" Crisis

As cash has flooded college and high school athletic recruiting through NIL deals and direct payments from schools, coaches and other observers say they see a growing need to regulate the middlemen who carve out a profit by putting themselves between the money and the athlete. So-called "street agents," who typically aren't certified agents or even attorneys, recruit players around the edges of the game and promise to represent them in pursuit of college scholarships or deals for their name, image and likeness. Coaches say high school athletes are more at risk of being exploited than college athletes because they lack the support and structure of a university compliance office, and they are sometimes the only student at their school weighing an offer, with no points of comparison.

Navigating NIL in High School

High school athletes who are considering NIL deals need to be aware of the specific rules and regulations in their state. Unlike college student-athletes, high school athletes have stricter limitations and may not be able to capitalize on their school’s logo or name. It is highly recommended that high school athletes reach out to their athletic director or contact their high school association before engaging with NIL deals.

State NIL Laws and Policies

States are introducing their own laws and policies related to NIL, and as a result, the regulations governing name, image and likeness deals can vary based on where you live or the college you attend. In states with active NIL laws, college athletes can earn money following both state and school rules.

Here is a summary of NIL law status by state:

Alabama: YES (Repealed / Suspended)
Alaska: YES (None)
Arizona: YES (Signed into law)
Arkansas: YES (Signed into law; Amended April 2023 to ban deals involving adult entertainment, alcohol, or gambling, allow civil penalties for violations, and let schools help create NIL opportunities)
California: YES (Signed into law)
Colorado: YES (Signed into law)
Connecticut: YES (Signed into law)
Delaware: YES (Signed into law)
District of Columbia (D.C.): YES (Legislation proposed October 2021 hasn’t progressed)
Florida: YES (Signed into law)
Georgia: YES (Signed into law)
Hawaii: YES (Bill introduced)
Idaho: YES (None)
Illinois: YES (Signed into law; Amended August)
Indiana: YES (None)
Iowa: YES (Legislation failed)
Kansas: YES (Legislation failed)
Kentucky: YES (Signed into law)
Louisiana: YES (Signed into law)
Maine: YES (Signed into law)
Maryland: YES (Signed into law)
Massachusetts: YES (Legislation proposed, currently following the NCAA’s interim policy)
Michigan: YES (Signed into law)
Minnesota: YES (Legislation proposed, currently following the NCAA’s interim policy)
Mississippi: YES (Signed into law; Amended April 2022 to allow schools to be involved in athletes’ deal conversations)
Missouri: YES (Signed into law; Amended May 2022 and July 2023)
Montana: YES (Signed into law)
Nebraska: YES (Signed into law)
Nevada: YES (Signed into law)
New Hampshire: YES (Legislation proposed)
New Jersey: YES (Signed into law)
New Mexico: YES (Signed into law)
New York: YES (Signed into law; Amended July 2023)
North Carolina: YES (Amended March 2024, North Carolina rescinded its NIL Executive Order, originally issued in July 2021)
North Dakota: YES (None)
Ohio: YES (Signed into law)
Oklahoma: YES (Signed into law; Amended May 2023)
Oregon: YES (Signed into law)
Pennsylvania: YES (Signed into law)
Rhode Island: YES (Legislation proposed)
South Carolina: YES (Signed into law, , Amended May 2024)
South Dakota: YES (None)
Tennessee: YES (Signed into law; Amended April 2022)
Texas: YES (Signed into law; Amended June 2023)
Utah: YES (Signed into law)
Vermont: YES (Legislation proposed, currently following the NCAA’s interim policy)
Virginia: YES (Signed into law, Amended April 2024 to let schools directly pay athletes and bar the NCAA from penalizing them for it)

Finding NIL Opportunities

Student-athletes looking to monetize on their NIL will need help securing deals. Changes in NIL laws in many states now make it OK for NCAA schools to help athletes find and facilitate NIL deals. There are resources and people who can help:

School NIL offices: Ask the recruiting coordinator at schools you’re interested in attending if they can connect you with the NIL office, and how they’ve helped other athletes find opportunities.
NIL collectives: Student-athletes can sign with the collective, and the organization will help find NIL deals for the athletes, from speaking at charity events to signing autographs to product and brand deals.
Agents: These representatives go find NIL deals for their clients, and they take a percentage of the payment as a fee.
NIL marketplaces: There are dozens of these marketplaces now. On some, athletes pay no fee, with the brands paying the costs. On others, both the athletes and brands pay a small percentage of any deal that’s reached.

The Future of NIL

The rules for NIL continue to evolve, giving athletes new ways to earn income from their name, image, and likeness. As of July 1, 2025, a major shift has taken place in college sports. Under the House v. NCAA settlement, Division I schools for their name, image, and likeness (NIL), ushering in a new era of compensation.

Policymakers should encourage NIL adoption across all programs and implement legally binding regulations for collectives, including mandatory registration and disclosure of deals for a more equitable and competitively balanced college football environment.

tags: #nil #deals #college #football #recruiting