As we kick off 2025, the landscape of Name, Image, and Likeness (NIL) continues to evolve at a rapid pace. Author Ludwig Gaines, JD, President & Co-Founder of the 360 NIL Group at Vincent Strategies, discusses recent key developments that will shape how colleges, universities, and student-athletes navigate the complex and ever-changing NIL marketplace. From a major reversal on Title IX and NIL to legal challenges, NCAA policy shifts, and market trends, here’s what you need to know.
1. The Department of Education’s Major Reversal on Title IX and NIL
In a significant policy shift, on February 12, 2025, the U.S. Department of Education announced that it has rescinded the previous Biden administration’s Title IX guidance on NIL compensation.
The prior guidance had classified NIL agreements facilitated by schools as a form of athletic financial assistance, requiring proportional distribution between male and female athletes under Title IX. The intent was to ensure gender equity in NIL deals.
Photo by Tom Page
However, the Department of Education deemed this guidance overly burdensome and legally questionable, arguing that Title IX does not mandate proportional NIL compensation. This reversal means institutions no longer have to balance NIL opportunities between men’s and women’s sports, which could lead to further scrutiny regarding disparities in NIL earnings.
For colleges and universities, this shift raises important questions about fairness, equity, and how institutions should approach NIL facilitation¹ moving forward. Schools must remain vigilant in promoting opportunities for all student-athletes while adapting to this new regulatory landscape.
2. NCAA and Federal NIL Regulation Effort
One of the biggest stories this month was the continued push for federal NIL legislation. With growing concerns about competitive imbalance, transparency, and athlete protections, lawmakers have been debating potential national NIL regulations. Several proposed bills are circulating in Congress, aiming to establish a standardized framework for NIL deals, enhance disclosure requirements, and clarify the role of collectives and boosters.
At the same time, the NCAA is under increasing pressure to solidify its stance on NIL rules. January saw intensified discussions about potential revenue-sharing models and whether the NCAA should take a more active role in regulating collectives that facilitate NIL deals.
3. NCAA Enforcement: Cracking Down on NIL Violations
Also this month, the NCAA demonstrated a stronger willingness to enforce existing NIL guidelines, particularly regarding pay-for-play violations. Schools and collectives are being scrutinized for deals that allegedly serve as recruiting inducements rather than legitimate NIL partnerships.
One major development was the NCAA’s warning to institutions that failing to comply with existing guidelines could lead to sanctions. As a result, some schools are reassessing their NIL policies to ensure they remain compliant while still offering competitive opportunities for student-athlete
4. State-Level NIL Legislation: More Divergence Ahead?
While federal legislation remains uncertain, several states introduced new NIL bills in January that could further complicate the patchwork of existing laws. Some states are seeking to strengthen athlete rights by giving them more control over their NIL opportunities, while others are focused on limiting the role of collectives or increasing oversight.
Photo by David Sanborn
Here are a few notable examples:
- Colorado: Lawmakers introduced HB25-1041, which aims to expand NIL rights for student-athletes by allowing institutions to directly compensate them and would remove contract restrictions that conflict with team agreements. The bill also exempts NIL-related agreements from public disclosure under the Colorado Open Records Act.
- Oklahoma: Governor Kevin Stitt signed an executive order permitting colleges and authorized third parties to facilitate NIL payments for student-athletes. This move comes as the state navigates the ongoing legal uncertainties surrounding NCAA NIL rules.
This divergence in state laws is creating compliance challenges for universities operating in multiple jurisdictions. Schools must now balance state-specific NIL policies with NCAA guidelines and potential federal regulations, making legal counsel and strategic planning more critical than ever.
5. The Market Shift: Brands Reassess NIL Strategies
January also brought notable changes in how brands approach NIL deals. After the initial gold rush of NIL partnerships, companies are becoming more strategic with their investments, prioritizing long-term brand alignment over one-off sponsorship.
Large corporations are focusing on multi-year deals with high-profile athletes, while smaller businesses and local brands continue to see value in partnering with student-athletes who have strong regional or niche followings. The emphasis on performance-based contracts is also growing, with brands expecting more engagement and deliverables from student-athletes.
6. Expansion of Women’s NIL Opportunities
A positive trend that continued in January is the expansion of NIL opportunities for female athletes. Women’s sports have seen a surge in NIL investment, particularly in basketball, gymnastics, and volleyball. High-profile female athletes are securing major deals, demonstrating that NIL success is not just limited to football and men’s basketball.
This shift highlights the growing influence of social media engagement and personal branding. Female athletes with a strong digital presence and authentic storytelling are becoming increasingly attractive to sponsors, setting a precedent for a more inclusive NIL landscape.
What’s Next?
As we move into February, expect continued discussions around federal NIL legislation, increased NCAA enforcement, and further market adjustments as brands and collectives refine their strategies. Universities must remain proactive in adapting to these changes, ensuring compliance while maximizing opportunities for their student-athletes.
At The NIL Group, we specialize in helping colleges, universities, and student-athletes navigate this evolving space. Stay tuned for our monthly updates as we track the latest developments shaping the future of NIL.
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1 Vol.1, No.2.