College athletes have been able to sell their name, image and likeness since July 2021, and fashion and beauty brands were among the first to sign them. What has changed since is the paperwork. A court-approved settlement now lets schools pay athletes directly, a new clearinghouse checks outside deals, two executive orders have targeted the system and Congress is still arguing over a federal law. Here is how NIL deals work for apparel, footwear and beauty brands as of 14 November 2026, and what belongs in the contract.
Short answer: NIL deals are endorsement contracts in which a brand pays a college athlete to use their name, image and likeness. Since the House v. NCAA settlement took effect on 1 July 2025, Division I athletes report third-party deals worth $600 or more to the College Sports Commission’s NIL Go platform. The contract must also respect state NIL law, the school’s apparel deal and FTC disclosure rules.
Key takeaways
- Judge Claudia Wilken approved the House v. NCAA settlement on 6 June 2025, allowing schools to share revenue with athletes from 1 July 2025 under a cap of $20.5 million per school in the first year.
- Outside NIL deals of $600 or more go through NIL Go. Since July 2026 most deals between $600 and $15,000 skip the pay-range test until an athlete passes $50,000 in deals with school-linked entities.
- A fashion NIL contract needs a clear exclusivity scope that does not clash with the school’s kit deal, an FTC-compliant disclosure clause, defined image rights and an exit if the deal is not cleared.
- The Senate passed the Protect College Sports Act 77 to 22 on 28 September 2026, but it dies unless the House passes it before 3 January 2027.
How does NIL work after House v. NCAA?
Before 2021 NCAA rules banned athletes from earning money from endorsements. State laws and the NCAA’s interim policy changed that in July 2021, but the market that followed was largely unregulated, with booster-funded “collectives” paying athletes in deals that looked more like salaries than sponsorships.
The House v. NCAA antitrust settlement reset the rules. Judge Claudia Wilken of the Northern District of California gave final approval on 6 June 2025, CBS Sports reported. The NCAA and conferences pay $2.8 billion in back damages to athletes who competed from 2016 to 2024, and for ten years schools may pay current athletes directly, under a cap of $20.5 million per school in 2025 to 2026 that rises by at least 4% a year. For 2026 to 2027 that works out at about $21.3 million. Third-party endorsement money from brands sits outside the cap, which is exactly why it is now policed. FLJ looked at the image rights side of this in the unprotected athlete after House v. NCAA.
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How does NIL Go review a deal with a fashion brand?
The settlement created the College Sports Commission (CSC), led by chief executive Bryan Seeley, and a Deloitte-built clearinghouse called NIL Go. Division I athletes must report third-party NIL deals worth $600 or more. The CSC asks two questions: is the deal for a valid business purpose, meaning the promotion of goods or services sold to the public for profit, and is the pay in line with what similar athletes earn?
The second question bites hardest on “associated entities”, such as collectives and boosters that exist mainly to support one school’s athletes. The NCAA definition expressly excludes publicly traded corporations, so a deal with a listed apparel or beauty company is usually treated as non-associated and gets a lighter review, provided it pays for real promotional work. The thresholds have moved twice in 2026. From April the CSC stopped running its pay-range test on deals up to $2,500, and a CSC memo of 23 June 2026 raised that to deals between $600 and $15,000 from 1 July 2026, unless an athlete’s associated deals pass $50,000 in the academic year. All deals still need a valid business purpose.
The numbers are large. According to the CSC’s March 2026 data report, NIL Go cleared 21,025 deals worth $166.5 million between its launch on 11 June 2025 and 28 February 2026, and did not clear 711 deals worth $29.3 million. Athletes can challenge a refusal in arbitration. In May 2026 the CSC won a Nebraska football case over about $7.5 million of deals with the school’s media rights partner, and in June 2026 an arbitrator let two Georgia athletes’ rejected deals go ahead.
How do state NIL laws affect an apparel deal?
State NIL statutes still apply on top of the CSC rules, and the most important clause for fashion brands is the one about team contracts. California’s law is typical. Under Education Code section 67456, an athlete may not sign an NIL contract that conflicts with a provision of the team contract, must disclose the NIL contract to a school official, and if the school claims a conflict it must show the athlete the conflicting provisions. A team contract cannot stop an athlete from using their name, image and likeness when they are not engaged in official team activities.
In practice this means a footwear brand can sign an athlete at a school with a rival kit deal, but the athlete will still wear the school’s supplier in games, practice and team media. Some states have pushed back at the CSC itself. By March 2026 the Texas and Tennessee attorneys general had objected to parts of the CSC’s participation agreement for schools, and Nebraska football players used a state law against NIL penalties in their arbitration. For the school side of the business, see FLJ’s piece on how universities became fashion brands.
What should a fashion or beauty NIL contract include?
An NIL deal is an endorsement agreement with extra regulatory layers. The clauses that matter most for apparel, footwear and beauty brands are set out below.
| Clause | What it does | Why it matters in college sport |
|---|---|---|
| Exclusivity and category | Bars deals with competing brands in a defined category (for example athletic footwear or cosmetics) | Must carve out official team activities and the school’s kit supplier to avoid a team contract conflict |
| Deliverables | Lists posts, shoots, appearances and approval rights | Shows a valid business purpose to the CSC; keep time demands compatible with training and classes |
| Grant of rights | Defines how long, where and in what media the brand may use the athlete’s image | Decide what happens after graduation, a transfer or turning professional |
| School marks | Prohibits use of school logos, uniforms and venues without a separate licence | School trade marks belong to the school, not the athlete |
| Disclosure | Requires clear and conspicuous labels such as #ad on every sponsored post | FTC rules apply to the athlete and the brand |
| Morality clause | Lets the brand suspend or end the deal over defined conduct | Should be mutual where possible and tied to objective events |
| Clearance condition | Makes payment conditional on NIL Go clearance and eligibility | Avoids paying for a deal the CSC later rejects |
| Immigration warranty | Confirms the athlete’s status allows the work | International students on F-1 visas face serious limits on paid work in the US |
Two points deserve more space. First, disclosure. The FTC’s Endorsement Guides, revised in June 2023, treat a paid athlete like any other influencer: the material connection must be clear in the post itself, and both brand and endorser can be liable. The FTC’s guidance for influencers explains what “clear and conspicuous” means, and FLJ’s influencer gifting disclosure guide covers free product. Second, image rights. Spell out whether the brand can keep using campaign images after the term, and in which countries; FLJ’s guide to IP and usage rights in influencer contracts applies almost word for word, and the background law is in the right of publicity in fashion.
Can international students sign NIL deals?
Only with great care. Most international athletes hold F-1 student visas, which sharply limit paid work in the United States. Deals that require services, such as sponsored posts, shoots or appearances, are the highest risk of being treated as unauthorised employment. Passive licensing of existing images and activity performed outside the US are sometimes used as workarounds, but as Steptoe notes, the Department of Homeland Security has not issued comprehensive NIL guidance, so none of these routes is approved. Brands signing an international athlete should get immigration advice and include termination and repayment protections.
Which fashion and beauty brands have signed college athletes?
American Eagle was early. In September 2021 it launched an #AEAthleticDept programme with athletes including USC quarterback Kedon Slovis and LSU gymnast Olivia Dunne. In March 2024 SKIMS cast six college basketball players, including Donovan Clingan of UConn and Hunter Dickinson of Kansas, in a men’s loungewear campaign timed for March Madness. The same month Jordan Brand signed LSU’s Mikaylah Williams, its second women’s college player after UCLA’s Kiki Rice, Sportico reported. USC’s JuJu Watkins first signed with Nike as a high school senior in October 2022 and agreed a multiyear extension in October 2024, ESPN reported, and the same autumn she signed with NYX Professional Makeup in what Sportico described as one of the first college deals with a professional makeup company.
Terms were not disclosed in any of these deals. The pattern is clear, though: brands use athletes with large social followings to reach younger shoppers, often around big tournaments. FLJ’s entertainment fashion lawyer guide covers the negotiating side of celebrity deals.
What has changed in 2026, and what comes next?
The White House has acted twice. An executive order of 24 July 2025, Saving College Sports, said third-party pay-for-play payments should be prohibited but expressly excluded fair-market compensation such as brand endorsements. On 3 April 2026 a second order, Urgent National Action to Save College Sports, called for a ban on improper arrangements run through collectives, protection against unscrupulous agents and FTC and Department of Justice enforcement, and tied compliance to federal funding.
Congress has not finished the job. The House’s SCORE Act (H.R. 4312) never reached a floor vote. The Senate instead passed the Protect College Sports Act (S. 4668), from Ted Cruz and Maria Cantwell, by 77 votes to 22 on 28 September 2026. It would preempt parts of state NIL law, require disclosure of NIL deals over $600, create a federal agent registry with fees capped at 5% and give the NCAA and conferences limited antitrust protection. After the 3 November midterms, Front Office Sports reported that its chances in the House had sharply diminished. If the House does not pass the same text before the new Congress sits on 3 January 2027, the bill lapses.
NIL rules, thresholds and legislation change often; the position stated is as of 14 November 2026. This article is general information, not legal or immigration advice.
Frequently asked questions
What are NIL deals?
NIL deals are contracts in which a company pays an athlete to use their name, image and likeness, usually for social media posts, campaigns or appearances. College athletes have been allowed to sign them since July 2021.
Do NIL deals have to be reported?
Yes. Division I athletes must report third-party NIL deals worth $600 or more to the College Sports Commission through NIL Go. Since July 2026 most deals up to $15,000 skip the pay-range test unless the athlete’s associated deals pass $50,000 in the year.
Can a college athlete sign with a different shoe brand from their school?
Usually yes, but the contract must not conflict with the team contract. The athlete will still wear the school’s supplier during official team activities, and the deal should carve those out.
Do athletes have to disclose sponsored posts?
Yes. Under the FTC’s Endorsement Guides a paid athlete must clearly disclose the brand relationship in each post, for example with #ad, and the brand can be liable if they do not.
Can international students make money from NIL?
It is risky. F-1 visa rules limit paid work in the US, and there is no comprehensive government guidance on NIL. Passive licensing and work done abroad are sometimes used, but none is approved, so immigration advice is essential.
Is there a federal NIL law?
Not yet. The Senate passed the Protect College Sports Act on 28 September 2026, but the House had not voted on it as of 14 November 2026, and it lapses if not passed before 3 January 2027.
Featured image: Photo: Kelly via Pexels
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