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Insights · NIL

NIL Basics

The House settlement, NCAA policy tweaks, and the new clearinghouse are rewriting how deals are filed, disclosed, and taxed.

February 7, 2026

House settlement clears the clouds

The House settlement with NIL companies and athletes over $20.5 million of deferred compensation requires a neutral clearinghouse and clearer disclosures before deals over $600 can be booked, making NIL deals easier to audit.

NCAA pairs back recruiting limits

NCAA policy now lets schools encourage recruits to pursue NIL deals earlier, while still requiring schools to monitor the deals for academic impacts and conflicts.

Process notes

  • Register every deal, endorsement, or appearance with NIL Go so the clearinghouse can confirm compliance and the 1099 thresholds.
  • Keep a central file on each athlete’s adviser and contracts so that schools can prove compliance and allow quick pause if a misstep is flagged.
  • Watch the high school and junior college rules that now require disclosure of prominent NIL deals before a player transfers.

Action items

  • Have marketing and compliance teams coordinate documents to keep the deal, payment schedule, and deliverables aligned with NCAA guidance.
  • Stipulate financial reporting requirements (e.g., $600 threshold) for every athlete so the school can file accurate 1099s.

References

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