Editor’s Note: This article was originally published in April 2023 and updated in September 2025 with new NIL developments, including the launch of the NIL Clearinghouse.
Many misconceptions are spread about college athletics, especially when it comes to the Name, Image, and Likeness (NIL) rule in college sports. For student-athletes and their families, it is crucial to understand the ins and outs of NIL to take full advantage of the opportunities it offers.
TL;DR: 5 Misconceptions About NIL in 2025
- NIL won’t ruin team chemistry — most athletes and coaches say it’s a non-issue.
- It’s not just for star athletes — local businesses and niche brands create opportunities for everyone.
- Schools don’t control deals — athletes must manage their own NIL agreements.
- Earnings can affect financial aid — but NIL still empowers athletes with business and branding skills.
- Rules aren’t the same everywhere — state laws and school policies vary, so athletes must know their local guidelines.
2025 Update: A New NIL Era Takes Shape
The NIL landscape is no longer a Wild West — in 2025, we’re seeing structural reforms, new authority, and evolving norms reshaping what was once a free-for-all.
On September 4, 2025, the College Sports Commission released its inaugural NIL Deal Flow Report, documenting over 6,000 submitted deals totaling more than $35 million between June and August alone.
Then, in July, the CSC reversed earlier restrictions on collectives, allowing them to compensate athletes again — provided the deals pass the “valid business purpose” test.
All of this ties into the sweeping House v. NCAA settlement, which took effect July 1, 2025, enabling schools to directly pay athletes. Under the new framework, colleges can distribute up to $20.5 million per year in revenue sharing.
To bring compliance, NIL Go, the federal clearinghouse, now requires all deals above $600 to be reported and reviewed — a move putting oversight front and center.
The NCAA also adopted new roster limit rules and scholarship adjustments in June 2025, aligning with the settlement’s structure and removing traditional scholarship caps for schools that opt in.
These changes reframe the NIL debate — it’s no longer just about fairness or perception. 2025 is testing whether the legal, compliance, and institutional frameworks can keep up.
Here are five major misconceptions about NIL (Name, Image, and Likeness) in college sports:
NIL Will Destroy Amateurism and Team Dynamics
One of the primary concerns with NIL is that it will compromise the concept of amateurism in college sports and negatively affect team dynamics. However, NIL allows student-athletes to profit from their hard work, dedication, and talent while maintaining their amateur status. In reality, NIL helps level the playing field and gives student-athletes the opportunity to build their personal brands and develop entrepreneurial skills. Additionally, research has shown that financial incentives in professional sports do not necessarily impact team cohesion negatively.
More reading: Only 8% of student-athletes say NIL is a ‘locker room problem’
Listen: Name Image Likeness with UREPZ Founder, C. Brett Harrell
Q&A on this misconception of team dynamics:
Q: Will college coaches talk with their pro connections to best understand differences in payment?
A: It is possible that college coaches will consult with their professional connections to better understand the differences in payment structures and strategies related to NIL opportunities. As the landscape of college athletics evolves with the introduction of NIL rules, coaches may look to tap into their networks in professional sports to gain insights on how to guide their student-athletes and help them navigate the complexities of NIL deals.
NIL Opportunities Are Only for Star Athletes
While it is true that star athletes may have more significant endorsement opportunities, the NIL rule offers possibilities for student-athletes across various sports and skill levels. Student-athletes can leverage their personal stories, connections, and unique talents to create a brand and explore marketing opportunities. In many cases, local businesses or niche markets may be more interested in partnering with student-athletes who have a strong connection to their community or cause.
More reading: Jaiden Fields (softball player) signs deal with WWE
Listen: Jaiden Fields | Growing Up With Justin Fields, UGA Softball, and WWE NIL Next | From The Players E6
Q&A on this misconception of opportunities for star athletes:
Q: What are some examples of not-as-well-known college athletes scoring NIL deals?
A: While high-profile athletes have been the primary focus when it comes to NIL deals, several lesser-known college athletes have also capitalized on this opportunity. Here are two examples:
Haley and Hanna Cavinder: These twin sisters, who play basketball for Fresno State, signed an endorsement deal with Boost Mobile in July 2021. They also have partnerships with brands like Six Star Pro Nutrition and Degree Deodorant.
Lexi Sun: A volleyball player from the University of Nebraska, Lexi has signed deals with brands like Raising Cane’s Chicken Fingers and clothing company Altitude Seven.
These examples show that NIL opportunities are not limited to only the most famous college athletes but extend to those who can effectively leverage their personal brands, social media presence, and connections to secure deals with companies and organizations.
Colleges and Universities Control NIL Deals
The NCAA guidelines stipulate that colleges and universities cannot directly facilitate NIL deals for student-athletes. Instead, the athletes are responsible for seeking out and negotiating their own NIL agreements. This independence allows student-athletes to take charge of their personal brands and develop business skills while maintaining a separation between the school’s athletic program and its endorsement deals.
More reading: College Athletes Embrace NIL to Build Businesses, Brands
Listen: Brooke Nelson of UW Softball
Q&A on this misconception that universities are in control of NIL deals:
Q: What are a few ways in which you see college athletes taking responsibility for monetizing their brand?
A: College athletes can take responsibility for monetizing their brand in several ways, including:
- Building a strong social media presence: Athletes can leverage social media platforms like Instagram, Twitter, TikTok, and YouTube to engage with fans, showcase their personality, and share their athletic journey. This helps them build a following and create a recognizable brand, which can be attractive to potential sponsors and partners.
- Developing personal branding: Athletes should focus on creating a unique and consistent image that represents their values, skills, and interests. This may include designing a personal logo, choosing specific colors or themes for their online presence, and being intentional about the content they share.
- Networking and relationship building: Athletes can connect with other influencers, athletes, and industry professionals to expand their network, share experiences, and learn about potential opportunities. Attending events, engaging in online communities, and collaborating with others can help build relationships and open doors to new partnerships.
- Identifying and approaching potential sponsors: Athletes can research companies and organizations that align with their values, interests, and target audience. By reaching out to these potential sponsors with a well-prepared pitch, athletes can demonstrate the value they bring to the partnership and negotiate mutually beneficial deals.
- Diversifying revenue streams: In addition to securing sponsorship and endorsement deals, athletes can explore other avenues for monetizing their brand. This may include creating and selling merchandise, hosting paid events or camps, offering online coaching or training sessions, or monetizing their content on platforms like YouTube or Patreon.
By taking responsibility for their personal brand and actively seeking ways to monetize it, college athletes can maximize their earning potential and capitalize on NIL opportunities.
NIL Earnings May Affect Needs-Based Financial Aid, But Provide Opportunities for Growth and Empowerment
The introduction of the NIL rule has opened doors for student-athletes, empowering them to monetize their name, image, and likeness. This not only allows them to gain financial benefits from their athletic talents and personal brands but also to develop valuable entrepreneurial and business skills.
While the NCAA has clarified that NIL compensation will not be considered when determining a student-athlete’s eligibility for athletic scholarships, it is important to note that the income generated from NIL deals could potentially impact the amounts that students qualify for under federal award programs, such as Pell Grants.
Income earned from NIL agreements will be considered additional taxable income for students, and as such, will be reportable on the Free Application for Federal Student Aid (FAFSA). If a student’s income increases due to NIL deals, it could potentially reduce their need-based financial aid. This is especially relevant for student-athletes who receive needs-based aid like Pell Grants, which are determined based on factors like student and parent income levels, family size, and the number of family members in college.
While some student-athletes may earn more from NIL opportunities than they lose in financial aid or incur in income taxes, it is crucial for them to understand the potential trade-offs and seek guidance from their institution’s financial aid office or athletics department when necessary. Colleges and universities should be prepared to address these concerns and help student-athletes navigate the complexities of NIL income and financial aid eligibility.
Ultimately, the positive aspects of NIL far outweigh the potential drawbacks. As student-athletes explore NIL opportunities, they will gain invaluable experience in managing their personal brands, negotiating deals, and making informed decisions that will serve them well in their future careers, both within and beyond the realm of sports. By embracing the NIL rule, we are empowering student-athletes to take control of their financial futures and fully benefit from their hard work, dedication, and talent.
Read more: NIL and Title IV financial aid considerations for colleges and universities
Listen: NIL, The Impact on Need-Based Aid | NACDA Podcast
Q&A on the misconceptions of NIL majorly impacting financial aid:
Q: How does FAFSA work for college athletes?
A: The Free Application for Federal Student Aid (FAFSA) process for college athletes is the same as it is for all other students. The FAFSA is used to determine a student’s eligibility for federal financial aid, which includes grants, loans, and work-study programs. Go to studentaid.gov to learn more.
NIL Rules and Regulations Are the Same Everywhere
Although the NCAA has established general guidelines for NIL, each state has the freedom to create its own NIL laws. Additionally, individual colleges and universities can develop their own policies to ensure compliance with state and federal regulations. Student-athletes must be aware of the specific NIL rules in their state and at their school to avoid any potential issues or violations.
Read more: NIL Incoming: Comparing State Laws and Proposed Legislation
Listen: State Laws on NIL | Highway to NIL Podcast
Q&A on the misconceptions about NIL and it being the same everywhere:
Q: What is a good resource to learn about each state’s current NIL laws?
A: The NIL Network has an up-to-date webpage dedicated to keeping everyone current on NIL state-specific laws.
NIL Is Just Getting Started, but This Resource on the Misconceptions of NIL Is Coming to an End
Embracing the NIL rule in college sports and educating yourself on this ever-changing rule offers a variety of positive outcomes for student-athletes. It provides opportunities to develop personal brands, learn valuable entrepreneurial skills, and profit from their hard work and dedication. By debunking these common misconceptions about NIL, we can better understand and appreciate the positive impact NIL has on college athletics.
Are you an athlete looking to create content, let’s talk!
FAQs: NIL in 2025
Q: Who oversees NIL now — the NCAA or someone else?
A: Since July 2025, the College Sports Commission (CSC) is the central oversight body for NIL. The CSC runs the NIL Clearinghouse (NIL Go) and sets compliance rules, while the NCAA still enforces eligibility.
Q: Do athletes have to report all NIL deals?
A: Yes. As of September 2025, any deal worth $600 or more must be reported to the NIL Go system. This ensures compliance and transparency, and schools are responsible for making sure their athletes comply.
Q: Are collectives still allowed to pay athletes?
A: Yes — in July 2025, the CSC softened its stance. Collectives can now compensate athletes if there is a valid business purpose (e.g., real endorsements, appearances, or content work). “Pay-for-play” without deliverables is still banned on paper.
Q: How does the House v. NCAA settlement affect NIL?
A: The settlement, approved in June 2025, allows Division I schools to directly share revenue with athletes — up to about $20.5 million per year per school. This marks the first time schools themselves (not just donors or brands) can legally pay athletes.
Q: Does NIL work the same in every state?
A: No. While the CSC has national authority, state NIL laws and school policies still layer on top. Athletes must understand both national reporting rules and their school’s local compliance standards.
Q: Can walk-ons or non-star athletes get NIL deals?
A: Definitely. While stars attract the biggest sponsors, many local businesses and niche brands are working with athletes who have strong community ties or social followings. NIL is broadening beyond just football and basketball.
Q: What about international athletes — can they participate in NIL yet?
A: Mostly no. Athletes on F-1 visas are still barred from most NIL work because it counts as “employment.” A September 2025 court ruling signaled restrictions may face challenges, but for now, only elite athletes on P-1A or O-1 visas — or those with green cards — can legally profit.
More reading:
Update to the state of NIL: The NIL Clearinghouse is active as of September 2025
Eric Kasimov is the founder of SportsEpreneur, part of the KazSource media network. Since launching the platform in 2015, he has hosted over 500 podcast episodes, written and published more than 1,500 articles, and advised business leaders, founders, and creators on building authority through media strategy.
Through his brands — KazSource, KazCM, SportsEpreneur, and QuietLoud Studios — Eric leads teams that produce podcasts, develop brand platforms, and help companies grow through modern content ecosystems. He also scaled KazSource Insurance into a seven-figure boutique agency, providing the foundation for the broader media network he operates today.
His work has been featured in Forbes, Axios, and Front Office Sports, and his podcasts have included conversations with top founders, investors, and athletes turned entrepreneurs.