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With March Madness in full swing and the April 15, 2026 commencement of signing period for high school and college basketball athletes to commit on the horizon, actual madness abounds. Coaches whose teams are participating in the finals are also having to recruit athletes for the next season. It’s a hotly competitive period on many fronts in all athletic competition.
At the center of this wild time are the ever-evolving NIL (Name, Image and Likeness) rules and regulations. Universities as well as student athletes and their parents continue to wrestle with the legal, ethical and lifestyle implications of the NIL morass.
Although a tiny percentage of students are affected by NIL, the financial ripples for athletic programs and universities are wide reaching. According to the NCAA, only about 6 to 7 % of high school athletes compete in NCAA sports and only about 2% participate in Division 1 schools. Yet, the money involved is substantial. The 2025 House v NCAA ruling allows about $2.75 billion to be distributed to athletes over the next 10 years. Many questions about how that process will unfold are still being answered, and concerns over the inequitable benefits and damages to various sports programs continue to grow.
So, how did we get here in the first place? The original lawsuit at the root of this evolution was O’Bannon v NCAA, a lawsuit that was decided in 2014—5 years after it was first filed—and involved UCLA basketball player, Ed O’Bannon, who sued over the use of his image in a video game. More antitrust lawsuits against the NCAA followed. In 2019, the California “Fair Pay to Play Act” was passed into law, allowing athletes to earn money from endorsements and forcing the NCAA to revise its rules and avoid a patchwork of state laws. As a result, the NCAA adopted in July 2021 a formal policy allowing athletes to engage in NIL activities that comply with the laws of their states. Since then, the confusion and scramble between student athletes, wealthy donors to sports programs, sponsors and sports fans alike have only intensified.
Since most of us share a love of sport and protection of our beloved universities and their student athletes and fans, what can be done to ensure fairness and financial protection during this NIL Wild West period? Below are a few issues that anyone impacted by NIL agreements should consider:
- The space is hotly competitive. Many factions, some with conflicting intentions, are in the NIL fray. Agents, politicians, universities, coaches, student athletes, even fans, are all impacted in this new environment. Being fully aware of this reality is crucial.
- State laws can conflict with NCAA bylaws and member school priorities. Again, in a competitive environment, universities are always looking for an edge, working within their state laws to sweeten the pot and be competitive. In Alabama, for example, state income taxes could hurt recruiting when states like Florida have no income tax. Therefore, the Alabama legislature is working to make NIL exempt from state taxes. Understanding individual state laws and how they could conflict with NCAA bylaws or university priorities is key.
- Universities must be realistic about their role in this new world. Not all universities are in the Power 3 category, yet most have robust sports programs and should consider the implications of NIL. At Barry University, for example, an NIL program is being established that considers their “steppingstone” status. They are setting themselves apart by embracing the reality that a promising baseball player, for example, may start at Barry, but later be recruited by the University of Miami or Florida Atlantic University.
- Beware of NIL “experts.” The top 1% of athletes most likely will be heavily pursued by the leading sports agencies that promise one-stop shopping expertise. All athletes, however, need to be extremely careful about the guidance they receive. Beware of proposals that feel like a “money grab.” Surviving in today’s world is starkly different than the days many parents of student athletes experienced. The mental toll on young players is real and potentially dangerous. Not everyone in the space is there for the right reasons. Deep and thoughtful research is important for protecting students who compete at all levels. For universities, hiring NIL coordinators internally has been a common tactic, as running a sports program at a major university is big business. Hiring someone who clearly understands the lay of the land and the overall impact on students as well as the bottom line is a smart strategy.
Preserving the integrity and life benefit of youth sports in today’s NIL world is more important than ever. For students, parents, universities and fans, focusing less on the money and more on protecting the development and mental health of these young students remains paramount.
Ira Gonzalez is the Managing Partner of McCarter & English’s Miami office, 121 Alhambra Plaza, Suite 1700, Coral Gables, 33134
786.437.5785
https://www.mccarter.com/people/ira-j-gonzalez/
