Legal, Employment & Labor
The New Economics of College Athletics (An Update on Name, Image, and Likeness Laws)
September 29, 2026 | Marvin Yates
Thirty-five states now have active NIL policies governing college athlete compensation, creating a patchwork of rules on disclosure, agent relationships, and high school eligibility that varies significantly across state lines. The House v. NCAA settlement fundamentally changed college athletics by allowing Division I schools to directly share revenue with athletes, with a cap of approximately $21.3 million per school for the 2026-27 academic year. The Senate passed the Protect College Sports Act in a 77-22 vote, establishing a potential national framework for college athlete compensation and NIL arrangements that could reshape the role of state NIL laws. More than half of states with legal sports betting still allow individual college athlete prop bets, despite NCAA reports that 36% of Division I men's basketball players have received harassment from bettors. Arkansas became the first state to enact a tax exemption for certain NIL earnings, addressing the complex state tax obligations college athletes face when competing and earning income across multiple states.
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