The landscape of college athletics is shifting fast. Colleges and apparel companies are now putting Name, Image, and Likeness (NIL) money directly into their partnership contracts.
This practice, mostly seen among Power Four conference schools, is making the financial gap between big and small universities even wider. Including NIL provisions lets schools funnel more compensation to athletes, even beyond the new NCAA revenue-sharing cap.
But it’s not all smooth sailing—these deals are drawing scrutiny from the College Sports Commission. Let’s take a closer look at how these changes are shaking up college sports, especially when it comes to recent deals and what they might mean for everyone involved.
The Evolution of Apparel Deals in the NIL Era
Big contracts between sports apparel brands and college athletic departments aren’t exactly new. Universities get product discounts and the clout of big-name partnerships, while brands get their logos plastered all over TV and campus.
But with NIL in play, these relationships are getting a whole new twist. There’s a lot more at stake now than just gear and exposure.
From Facilities to NIL Cash
Back in the day, most of the money from these deals went toward building better facilities to lure recruits. Now, the focus has shifted—schools are using these contracts to inject cash into NIL provisions, giving athletes more above-the-cap dollars.
This change really took off after the House vs. NCAA settlement, which kicked off direct revenue sharing between colleges and athletes starting July 1, 2025.
Key Apparel Deals and NIL Provisions
Nike, Adidas, and Under Armour are dropping tens of millions to outfit SEC and Big Ten teams, often signing deals that stretch for a decade. Adding NIL provisions lets schools boost athlete compensation and gives brands a direct shot at connecting with college athletes they’d probably want for endorsements anyway.
Adidas and Tennessee
When Tennessee’s athletic department switched back to Adidas from Nike, the announcement made a big deal about new NIL opportunities for student-athletes across all 20 varsity programs. This 10-year partnership with Adidas, starting July 2026, really shows how schools are leveraging apparel deals for athlete compensation.
Nike and LSU
LSU extended its deal with Nike and, at the same time, announced that 10 LSU athletes had signed on with Nike’s new NIL collective. It’s a sign that apparel companies are getting more creative with NIL, aiming for more than just outfitting teams or writing checks to departments.
Under Armour and Wisconsin
Wisconsin’s new deal with Under Armour includes at least $175,000 each year dedicated to NIL. This is another sign that NIL is breathing new life into these kinds of agreements.
The Financial Gap Between Power and Non-Power Conference Schools
Smaller schools are mostly missing out on this trend because of how they structure their apparel deals. They usually work with regional suppliers who act as middlemen for big brands like Nike, which limits their negotiating power.
That means the big schools can score more perks, including NIL dollars, making the gap between top and mid-tier athletic departments even wider. It’s not exactly a level playing field.
Challenges for Smaller Schools
Most smaller universities stick to purchasing agreements rather than splashy marketing deals with brands. And not every school actually cares about NIL dollars in their apparel contracts.
Take Ohio State, for example—they had over $330 million in operating revenue in 2025, so they’re looking at these contracts for revenue share. Kent State, with just $32 million that same year, is playing a totally different game.
Maximizing Value
For non-power conference schools, the priority is often just keeping their budgets in check. Each school has to figure out how to get the most out of their apparel deal, given their own set of constraints and opportunities.
Regulatory Scrutiny and Compliance
Right now, writing NIL promises into apparel contracts is technically allowed under federal law and NCAA guidelines. Still, the loophole is getting some side-eye from regulators.
The College Sports Commission (CSC) reviews all deals between NCAA Division 1 athletes and third parties. Athletes have to submit deals worth more than $600 to a portal called NIL Go, and the CSC checks if the deal makes sense and if the compensation is fair.
Enforcement and Investigations
In January, the CSC sent out a warning to schools about sketchy third-party NIL deals. They reminded everyone that every agreement from an associated entity must spell out how the athlete’s NIL rights are being used.
CSC is already looking into LSU for possible violations over unreported player compensation. It’s not just paperwork—there are real investigations happening.
Recruiting and NIL Promises
If there’s an NIL component in an apparel deal, schools have to be careful about how they talk about it to recruits. NCAA and CSC rules let schools say how much they’ll pay a player directly, but they can’t promise third-party NIL money up front.
Brands that guarantee NIL money to a school through an apparel contract still have to negotiate endorsement deals with athletes. And athletes have to report any deal over $600 in total value.
The Future of NIL in College Sports
The NIL landscape just keeps shifting. Apparel companies and universities are getting pretty creative as they figure out how to work within these new rules.
We’re starting to see NIL provisions pop up in more and more apparel deals. This could become standard practice, giving athletes a real boost in compensation.
It also seems like power conference schools will keep their financial edge, maybe even more so now.
Curious about how all this is changing college sports? Check out the full article on USA Today.
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