By Ludwig Gaines, JD, Vincent Strategies
Since its passage in 1972, Title IX of the Education Amendments has transformed the landscape of education and sports, mandating that institutions receiving federal funds ensure gender equity. For decades, its impact has primarily been measured by the strides made in providing equal opportunities for women and girls in sports. However, the U.S. Department of Justice’s recent determination that Title IX applies directly to athletes’ compensation plans is a potential game-changer for colleges and universities nationwide.
This decision—coming at a time when Name, Image, and Likeness (NIL) agreements and athlete compensation have become central to the collegiate sports landscape—raises profound questions about how institutions of all sizes must adapt to avoid running afoul of federal law.
Title IX Meets NIL and Compensation Plans
Title IX’s mandate is clear: no person in the United States shall, on the basis of sex, be excluded from participation in, denied the benefits of, or subjected to discrimination under any education program or activity receiving federal financial assistance. Until now, the primary focus has been on equal opportunities in athletic participation, scholarships, and facilities. The DOJ’s recent interpretation expands Title IX’s reach to include the fairness of athletes’ compensation plans. This addresses concerns that compensation opportunities—such as NIL deals, stipends, and performance bonuses—might disproportionately favor male athletes, particularly those in revenue-generating sports like football and basketball, at the expense of female athletes.
For example, some universities have instituted payment structures that provide blanket stipends or incentives based on factors that disproportionately benefit men’s sports. Such plans may now be in violation of Title IX if they do not account for equitable compensation for female athletes.
The Stakes for Colleges and Universities
Institutions now face an urgent need to review and revise their compensation and NIL policies to ensure compliance. This determination creates significant implications for:
- Athletic Departments: Schools must evaluate whether their compensation frameworks, endorsements, and NIL facilitation processes align with Title IX. If compensation disproportionately benefits male athletes, schools could face investigations, lawsuits, and potential loss of federal funding.
- Resource Allocation: Universities may need to redirect funds to ensure that female athletes receive equitable opportunities and benefits. This could include actively supporting NIL opportunities for women’s sports, ensuring equal access to marketing resources, and enhancing facilities and coaching staff.
- Recruitment and Retention: Compliance with Title IX may influence how schools attract athletes. A failure to provide equitable compensation opportunities could deter female athletes and lead to reputational damage.
- Legal Exposure: The DOJ’s determination could embolden athletes, advocacy groups, and legal experts to challenge schools that fail to meet Title IX standards in this area.
Building a Path Forward
Colleges and universities must act quickly and thoughtfully to address this evolving landscape. Here are key steps institutions should consider:
- Conduct Equity Audits: Schools should perform comprehensive audits of their NIL and compensation policies to identify any disparities between male and female athletes.
- Collaborate with Legal Experts: Title IX compliance in this new context requires a nuanced understanding of both the law and the complexities of athlete compensation. Engaging with legal experts and Title IX specialists is essential.
- Proactively Support Women’s Sports: Schools must invest in marketing, resources, and partnerships to ensure that female athletes receive equitable opportunities for NIL and other compensation.
- Educate Stakeholders: Athletic staff, donors, and external partners should be made aware of Title IX requirements to ensure their actions align with institutional obligations.
A Pivotal Moment for Equity in College Athletics
The DOJ’s determination is a pivotal moment in the ongoing quest for gender equity in college sports. While challenges lie ahead, this decision also presents an opportunity for colleges and universities to lead by example. By taking proactive steps to ensure that compensation plans comply with Title IX, institutions can reaffirm their commitment to equity, inclusion, and fairness for all athletes.
This new chapter in Title IX’s legacy is about more than compliance—it’s about affirming the value of every student-athlete, regardless of gender, and ensuring that opportunities in college athletics remain equitable and just.
The journey to equity in sports is far from over, but this determination marks a significant step forward in leveling the playing field.
Ludwig P. Gaines, JD, is the founder and leader of the Vincent Strategies NIL group specializing in empowering colleges and universities to navigate the complexities of Name, Image, and Likeness (NIL) regulations while maximizing opportunities for their student-athletes and athletic programs. Our mission is to provide tailored legal, strategic, and holistic support that ensures compliance, enhances student-athlete well-being, and drives sustainable growth in fundraising, branding, and operational efficiency.