This year, several key changes to NIL rules are slated to impact athletes, coaches, and administrators alike. These developments reflect a growing effort to balance the rights of student-athletes to earn income with maintaining the structure of collegiate athletics. Below, I’ll share four major changes coming this year, and what they mean for those involved in college sports.
Major NIL Developments in 2025
1. Revenue Sharing and Scholarship Adjustments
What’s changing: Starting with the 2025-26 academic year, schools will distribute part of their revenue directly to student-athletes. This means athletes will earn a share of the money generated by their sports, such as football and basketball. Additionally, the NCAA is increasing scholarship limits, allowing more athletes to be on scholarship.
In simple terms: Think of this as athletes getting paid a bonus for the hard work they put into their sports. It’s like profit-sharing in a company, where employees (in this case, athletes) get a piece of the company’s earnings starting in 2025. However, revenue sharing will only be available to athletes on the teams that have broadcast revenue. Also, these opportunities will only be available to schools in big five conferences.
Impact:
- Athletes: More financial support for their efforts, which could help cover living expenses and reduce the need for other jobs or financial stress.
- Coaches: They’ll have more scholarship spots, meaning they can recruit and support more players.
- Administrators: Schools will need to carefully manage budgets to ensure compliance and fairness in revenue distribution.
2. Elimination of the National Letter of Intent (NLI)
What’s changing: The National Letter of Intent program is being replaced with a financial aid agreement between schools and athletes. This simplifies the process and ensures athletes have clearer, binding agreements about scholarships and other benefits.
In simple terms: The NLI was like a complicated contract that tied athletes to schools. Now, it’s replaced by a straightforward agreement focused on what the athlete gets in return for joining the team.
Impact:
- Athletes: Less confusion during recruitment and more transparency about what they’re committing to.
- Coaches: Recruitment could become more straightforward, with fewer disputes about what was promised to athletes.
- Administrators: Schools will need to develop clear, legally sound agreements to avoid disputes.
3. State-Level NIL Legislation
What’s changing: Some states, like Georgia, are taking NIL rules a step further. Georgia, for example, allows schools to share revenue directly with athletes and protects schools from NCAA penalties related to NIL. Meanwhile, Pennsylvania is pushing for federal NIL regulations to ensure consistency.
In simple terms: State rules are making it easier for athletes to earn money while creating safeguards for schools. In some cases, they’re advocating for a national rulebook so every state is on the same page.
Impact:
- Athletes: More opportunities to earn income, but depending on the state, the rules may vary.
- Coaches: They may need to educate athletes about what is allowed under their state’s laws.
- Administrators: Navigating different state laws can be complex, especially for schools in conferences spanning multiple states.
4. NCAA NIL Disclosure and Transparency Rules
What’s changing: Athletes must disclose NIL agreements worth more than $600 to their schools within 30 days. This helps ensure everyone is playing by the same rules.
In simple terms: This is like telling your school about a part-time job you’ve taken. It’s not about stopping you from working but ensuring everything is above board. Athletes can understand potential risks associated with NIL deals, protecting them from potentially exploitative contracts, while also helping schools to monitor potential conflicts of interest.
Impact:
- Athletes: They’ll need to be organized and timely about reporting deals to avoid penalties.
- Coaches: Can help athletes stay compliant by providing guidance.
- Administrators: Will have more work tracking NIL disclosures but can better ensure fairness and rule compliance.
These changes are a big step toward recognizing the value athletes bring to college sports while ensuring fairness and transparency. Athletes at certain levels will gain more opportunities to support themselves, coaches have more tools for recruitment, and administrators play a crucial role in managing these transitions. While challenges will still need to be worked out, I hope these developments signal a positive shift in assisting student-athletes while enhancing the system.