Attorney
You’ve worked for years to compete at the collegiate level in the U.S., and now your teammates are signing NIL deals while you watch from the sidelines—unsure if you’re even allowed to participate. For international student-athletes on F-1 or M-1 visas, NIL isn’t as simple as signing a contract. Strict employment restrictions, IRS tax obligations, and institutional compliance rules create real risks: one misstep could jeopardize your visa status or trigger unexpected tax liability. In this guide, our NIL attorneys in Oregon and Nebraska explain what international student-athletes and compliance officers need to know to explore NIL opportunities without putting immigration status or eligibility at risk.
NIL Eligibility for International Students: The Current Landscape
The NCAA and NAIA allow student-athletes to profit from their name, image, and likeness. However, these policies do not override federal immigration law. For international students on F-1 or M-1 visas, NIL participation can be risky.
While NIL is not classified as ’employment’ under NCAA eligibility rules, it IS considered unauthorized employment under federal immigration law. International students on F-1 or M-1 visas cannot participate in most NIL activities within the United States without specific immigration authorization, even though such activities are permitted by the NCAA.
F-1 visa holders are generally prohibited from earning income off-campus unless it’s through authorized programs like Curricular Practical Training (CPT) or Optional Practical Training (OPT). NIL activities, such as brand endorsements or social media promotions, typically fall outside these programs.
There is no clear federal guidance from U.S. Citizenship and Immigration Services (USCIS) on whether NIL income is allowed for international students. As a result, many universities in Oregon and Nebraska take a cautious approach. Schools like the University of Oregon, Oregon State University, University of Nebraska–Lincoln, and University of Nebraska at Omaha often advise international student-athletes to avoid NIL deals unless cleared by immigration counsel.
Some institutions may offer limited guidance or refer students to their Designated School Official (DSO) or legal advisors. Staying informed through your university’s compliance office is essential.
Visa Compliance: Risks of Violating F-1 or M-1 Status
F-1 and M-1 visas come with strict rules about employment. Any unauthorized work, including potentially NIL-related income, can be considered a violation of visa status. USCIS may view NIL earnings as unauthorized employment, even if the activity is not traditional work.
Violating visa terms can lead to serious consequences:
- Termination of SEVIS status
- Revocation of your visa
- Ineligibility for future immigration benefits
- Potential removal proceedings
Because NIL income is not tied to academic credit or a university-sponsored program, it usually does not qualify under CPT or OPT. This makes it difficult for international student-athletes to legally participate in NIL deals while in the U.S.
Best Practices:
Before engaging in any NIL activity, international students should:
- Speak with their DSO to understand visa restrictions
- Consult an immigration attorney familiar with student visa rules and NIL opportunities
- Avoid U.S.-based NIL deals unless explicitly authorized
- Explore NIL opportunities that occur entirely outside the U.S., such as social media promotions targeting a home-country audience
These steps can help reduce the risk of violating immigration laws while still exploring potential NIL benefits.
Tax Implications: What International Students Must Know
Even if an international student-athlete finds a legal way to earn NIL income, tax obligations still apply. The IRS classifies most international students as nonresident aliens for tax purposes. This means NIL income is taxable and must be reported.
To comply with U.S. tax law, international students must:
- Obtain an Individual Taxpayer Identification Number (ITIN)
- Report NIL income on the appropriate tax forms
- Understand any applicable tax treaty benefits between the U.S. and their home country
- Comply with federal and state withholding requirements
Failing to report NIL income can result in penalties, interest, or future immigration issues. In Oregon and Nebraska, there are no special tax exemptions for NIL income. State income tax may apply in addition to federal taxes, depending on where the income is earned and how it is structured.
What International Students Can Do
While the legal landscape is challenging, international student-athletes still have options. The key is to proceed carefully and with professional guidance.
Here are some steps to consider:
- Work with an immigration attorney to evaluate NIL eligibility
- Explore NIL deals that do not involve U.S.-based compensation or activities
- Consider forming a business entity in your home country, if legally permissible
- Stay in close contact with your university’s compliance office and DSO
- Avoid informal or “under-the-table” deals that could jeopardize your visa
Being proactive and informed can help international students protect their legal status while exploring NIL opportunities.
Protect Your Immigration Status While Exploring NIL in Oregon or Nebraska
NIL deals can be exciting, but for international student-athletes, they come with legal and immigration risks. If you’re studying in Oregon or Nebraska and considering NIL opportunities, it’s essential to get the right legal advice before moving forward. The Hughes Companies can help you understand your options and protect your future. Contact us today for a confidential consultation.