NIL Just Got Real: What Universities, Collectives, and Athletes Need to Know About the NCAA’s Latest Shake-Up

Vinny Hale
Jun 9
4 min read

Whether you're a college athletics novice or been following along with the NIL legal disputes for years, this article aims to break down all of the key insights needed to speak knowledgeably on the topic...or just enough to debate it with your friends on Saturday nights in the fall.

So where do we start...?

College athletes have historically, and still technically, been regarded as amateur athletes. This designation, opening the door for much legal implication over the past few years, as players and their agents began advocating for a reform of the NCAA system that would give players their appropriate share of compensation. "Appropriate" in this context referring to the portion of revenue generated by university athletic programs that players feel entitled to.

Starting prior to 2021, and in response to schools like Texas A&M receiving highly publicized backlash from celebrity personalities such as Johnny Manziel, the legal pressure began to mount. In 2014-15 the O'Bannon v. NCAA challenge lead courts to allow non-cash educations benefits and full cost-of-attendance. Effectively allowing up to $5,000 per year in additional compensation. But this was just the beginning..

Then in 2021 the NCAA suspended the ban on name, image, and likeness (NIL) regulations. This allowed athletes to begin monetizing their NIL in July 2021 and marked the beginning of what are now known as "NIL Collectives." These collectives were formed to operate as an investment vehicle for boosters to donate to their alma-maters and served as intermediaries, facilitating deals between athletes and potential sponsors and businesses.

Fast forward to today and the recent decision in House v. NCAA and we have seismic NCAA rule shifts taking place.

Why do we (as fans) care?

The old model — where athletes stayed for four years, played for pride, and rarely profited — is quickly disappearing. Today, players are transferring more freely, chasing better opportunities (and better deals) through the transfer portal. NIL has changed recruiting, loyalty, and the economics of college sports. Whether you love or hate these changes, they’re here — and they’re reshaping the spirit, strategy, and storylines we care about on Saturdays. Understanding how it all works isn’t just for compliance officers anymore — it’s for anyone who wants to keep up with the game.

This isn’t just about athlete pay — it’s about the future business model of college sports.

What Is the House Settlement?

House v. NCAA began as a legal challenge to the NCAA’s long-standing amateurism model. Former athletes argued that the NCAA unlawfully restricted their ability to profit from their name, image, and likeness — even as the NCAA and member schools generated billions in revenue.

The result? A historic settlement in May 2024 that includes:

$2.8 billion in retroactive damages to former Division I athletes over a 10-year period
A framework to allow revenue sharing, enabling schools to pay athletes directly starting July 1, 2025
Policy shifts that replace scholarship limits with roster limits, giving schools more control — and more responsibility

This is more than a court case. It’s a restructuring of the college sports economy.

The Big Changes Coming in 2025

1. Revenue Sharing Becomes Reality

For the first time ever, universities will be allowed to directly share athletic department revenue with athletes — up to an estimated $22 million per year per school.

This means schools must now:

Model their future compensation budgets
Decide how to allocate funds across sports and athletes
Ensure compliance with Title IX and other regulations

Many are predicting more legal ramifications to follow as universities grapple Title IX compliance in the allocation of revenue to men's v. women's sports.

2. Scholarship Limits Out, Roster Caps In

Under the new rules, the NCAA will shift from limiting the number of scholarships to limiting total roster sizes. This gives schools more flexibility — but also adds complexity around roster management, fairness, and financial strategy.

My hunch is that this unfortunately going to reduce the amount of walk-on spots available at Power 5 universities.

3. Compliance and Reporting Get More Complex

With direct payments, comes accountability. Schools and collectives will need to:

Track NIL deals and income
Provide transparency for donors, boosters, and the NCAA
Avoid legal risk under employment and tax law

Deloitte has established a framework to review third-party NIL deals through a clearinghouse system they've titled "NIL Go".

4. Athlete Support Becomes Essential

Financial literacy, contract education, and tax preparation will no longer be “nice to have.” They’ll be necessary services for athletes earning tens or even hundreds of thousands of dollars annually.

Why This Matters for Universities and Collectives

Universities are no longer just educators or recruiters — they’re employers, brand partners, and talent managers. NIL collectives, many of which began informally, now resemble venture-backed sports agencies managing millions in annual deals.

They face real questions:

How do we legally structure athlete compensation?
How do we balance Title IX compliance with football-driven revenue?
How do we stay ahead of IRS scrutiny or NCAA audits?

The stakes have never been higher.

The Risks of Inaction

Schools and collectives that don’t act now risk:

Legal exposure under Title IX and employment law
NCAA penalties for non-compliance or poor reporting
Reputational damage for unfair or opaque compensation practices

The schools that invest in infrastructure, compliance, and advisory support will not only avoid risk — they’ll gain a competitive edge in recruiting and retainment.

What Smart Schools Are Doing Now

Forward-thinking athletic departments are already:

Building internal NIL and financial operations teams
Partnering with outside advisors to structure budgets and review policies
Hosting financial education sessions for athletes
Auditing their collective’s tax and legal frameworks

Whether you’re a Power Five school with deep resources or a mid-major trying to compete, the strategy is the same: get proactive.

Final Thoughts

The House v. NCAA settlement will go down as one of the most impactful events in college athletics history. It challenges the old model and introduces new opportunities for fairness, transparency, and innovation.

For universities, collectives, and student-athletes, the next 12 months are critical.

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