Attorney
For the first time in history, Division I colleges can now directly pay student-athletes for their name, image, and likeness (NIL). This groundbreaking shift comes from the 2025 NCAA settlement—a change that will reshape college sports for years to come.
At The Hughes Companies, we work with student-athletes in Oregon and Nebraska to protect their rights, ensure compliance, and maximize their NIL opportunities. If you’re an athlete or a parent, here’s what you need to know about the new direct payment system, revenue-sharing model, and what it means for your eligibility.
From Third-Party Deals to Direct School Payments
Before 2025: NIL earnings came primarily from third-party deals—endorsements, social media promotions, autograph signings, and event appearances. Schools could help connect athletes with opportunities, but they could not directly pay for NIL rights.
Now: Division I schools can pay student-athletes directly for the use of their name, image, and likeness. These payments are separate from scholarships and count toward new revenue-sharing limits. Schools can negotiate NIL terms much like a business partnership, but with oversight to ensure fairness and compliance.
How the Direct Compensation System Works
The 2025 settlement established clear guidelines:
- Annual Revenue-Sharing Pool: Each Division I school may allocate up to $20.5 million per year (adjusted annually) for direct NIL payments to athletes across all sports. The amount an athlete can earn from this pool depends on school policies, the sport’s budget, and their position within the team.
- Roster-Based Caps: Instead of limiting scholarships per sport, the new model uses roster limits to manage both scholarships and NIL compensation. This prevents over-stacking teams while maintaining competitive balance.
- Contract Terms: Payments must be tied to legitimate NIL services (appearances, marketing campaigns, licensing rights) and cannot be disguised pay-for-play. Schools must clearly define deliverables—such as the number of hours worked, appearances made, or content posted—so athletes know exactly what is required.
Key Differences from the Old NIL Model
Under the old NIL system, athletes could only earn through third-party deals, and schools had no role in revenue-sharing. Earnings varied widely based on individual marketability, and NCAA oversight was relatively loose, with oversight handled mainly at the school level. In contrast, the new 2025 model allows schools to directly pay athletes, introduces an annual capped revenue-sharing pool, and broadens earning opportunities to athletes across all sports. Compliance is now overseen by the College Sports Commission (CSC) with the support of the independent review platform NIL Go, ensuring greater consistency and fairness.
Eligibility and Compliance Tips for Oregon & Nebraska Athletes
Even though the rules have changed, compliance is still critical to protect your playing status and future opportunities.
- Know Your School’s Policy: Each Oregon or Nebraska institution will set its own NIL payment structure within the national framework. Understand caps, payment schedules, and service requirements before signing.
- Know Your State Law: Each state, including Oregon or Nebraska, have their own NIL laws, and other important laws that student athletes need to be aware of.
- Track Deliverables: Keep records of every appearance, campaign, or project tied to your NIL contract. Incomplete performance could trigger repayment or eligibility issues.
- Watch for Conflicts: If you already have third-party deals, make sure new school agreements don’t violate exclusivity clauses.
- Understand Tax Obligations: Direct NIL payments are taxable income. Plan for withholdings and seek advice to avoid IRS trouble.
Why This Matters for Families
Parents and guardians in Oregon and Nebraska should be directly involved in reviewing NIL agreements. While the settlement opens exciting new income opportunities, it also introduces legal and financial complexities:
- Multiple income streams may require coordinated record-keeping.
- Athletes need guidance on balancing NIL commitments with academics and training.
- Poorly structured or managed agreements could impact eligibility, prevent NIL Go approval for 3rd party deals, or conflict with future pro contracts.
How The Hughes Companies Can Help
Whether you’re signing your first NIL deal or renegotiating under the new direct-payment rules, Attorney and Sports Agent Michael Hughes understands the state-specific laws, NCAA compliance rules, and contract protections that keep athletes safe and successful.
We provide:
- Contract review and negotiation for both school and third-party NIL agreements
- Compliance monitoring so you never risk eligibility
- Brand-building strategies to maximize long-term earning potential
Stay Up-to-Date with The Hughes Companies
If you’re a student-athlete in Oregon or Nebraska, don’t leave money or eligibility on the table. Contact The Hughes Companies today to schedule a confidential NIL strategy session and make the most of the 2025 reforms.