The New NIL Playbook: How Families Can Navigate Federal Changes in College Athletics
Here in part two of our series on the impact of the Executive Order on the NIL landscape, we explore how the rules of the college sports game are changing dramatically. With President Trump's recent executive order on Name, Image, and Likeness (NIL), we're seeing the biggest federal intervention in collegiate athletics since Title IX.
If your child is an aspiring college athlete, you're now navigating a completely transformed landscape—one where understanding the new federal framework isn't just helpful, it's essential.
The days of patchwork state regulations are ending
Since 2021, college athletics has operated under a chaotic system of state-by-state NIL laws. Some states allowed nearly unlimited compensation arrangements, others imposed strict guardrails, and many had no specific regulations at all. This created a recruiting advantage for schools in permissive states and confusion for everyone involved.
The executive order changes this by establishing a national standard that specifically prohibits third-party "pay-for-play" payments while still allowing legitimate brand endorsements at fair market value. This distinction is critical for families to understand.
What's legitimately on the table for your student-athlete?
The order makes a clear distinction between two types of compensation:
Allowed: Fair market value endorsements where brands have a legitimate business interest in partnering with your athlete
Prohibited: Third-party payments essentially functioning as recruitment incentives or performance bonuses
For example, a local restaurant can pay your basketball player daughter to appear in advertisements based on her actual marketing value. However, a booster organization cannot offer $50,000 simply to choose a particular school or hit certain performance metrics.
Protection for Olympic and women's sports athletes
One of the most significant aspects of the executive order is its focus on preserving opportunities in non-revenue and women's sports. Large athletic departments (those generating over $125 million) must now increase scholarships and roster spots for non-revenue sports.
For families with children in sports like swimming, track and field, or women's teams, this provides important protection against the concentration of resources exclusively in football and basketball.
Building your family's NIL strategy
Rather than waiting for opportunities to come to you, the most successful families in the NIL era are taking ownership of their approach:
- Document your athlete's actual market value. Track social media engagement metrics, gather community involvement history, and identify unique attributes that make your athlete valuable to potential partners.
- Create a compliance system. Establish a documentation process for all NIL activities that clearly demonstrates the business relationship and fair market value of each opportunity.
- Develop relationships with the right third parties. Connect with legitimate businesses relevant to your athlete's personal brand—not just those willing to pay the most.
- Understand your school's revenue tier. The executive order creates different requirements based on athletic department revenue. Knowing where your school fits helps you understand what protections your athlete has regarding scholarships and roster spots.
Real-world navigation example
Let’s create a character named Emma. Emma is a volleyball player at a mid-major program. Rather than pursuing booster-affiliated deals that could violate the new rules, her family chose to build relationships with local businesses where Emma had authentic connections. Her agreement with a volleyball training center to run youth clinics provides legitimate value to the business while allowing Emma to earn based on her expertise and drawing power.
This arrangement clearly satisfies the "legitimate business interest" requirement and provides documentation of fair market value for the services rendered. By focusing on authentic connections rather than simple pay-for-play arrangements, Emma's family created a sustainable, compliant NIL strategy.
What this means for your family's approach
The executive order's clarity presents an opportunity to build a more strategic, long-term approach to your athlete's NIL potential. Rather than chasing quick paydays that may violate federal rules, focus on building authentic brand partnerships that can grow throughout your athlete's college career and potentially beyond.
Most importantly, remember that the principles that have always guided successful athletic careers—authenticity, hard work, and personal connection—remain the foundation of successful NIL strategies. The best deals will come from legitimate businesses that truly value what your athlete brings to the table.
We're entering a new era of college sports where the rules are clearer but navigation requires more sophisticated understanding. Taking ownership of your approach now will position your family for success regardless of how implementation details evolve.
What's your experience with NIL opportunities? Have you noticed shifts in how schools or businesses are approaching student-athletes since these changes?