College sports are in the midst of a real shakeup, mostly thanks to new name, image, and likeness (NIL) guidelines and that big revenue-sharing lawsuit. It’s not just about players making money now—these changes are rewriting the whole playbook for college athletics.
From the Supreme Court’s ruling in NCAA v. Alston to the launch of the College Sports Commission, the ripple effects just keep coming. If you’re wondering what this all means for athletes, schools, and the future of the game, well, there’s a lot to unpack.
The Dawn of NIL: A New Era for College Athletes
On July 1, 2021, the NCAA finally allowed college athletes to profit from their name, image, and likeness (NIL). This came after the Supreme Court’s decision in NCAA v. Alston, which basically said the NCAA can’t stop athletes from making money off their own brand.
Now, athletes can sign endorsement deals, get sponsorships, and even make money from their social media. It’s a whole new world for student-athletes.
Opportunities and Responsibilities
Of course, NIL isn’t just free money—it comes with its own set of responsibilities. Athletes need to keep track of expenses, maintain earning records, and, yes, file taxes just like anyone else with income.
- Track expenses
- Maintain earning records
- File taxes as they would on other income
State laws make things even trickier. Some states ban athletes from signing gambling or alcohol deals, while others are more relaxed. This patchwork of rules can play a big role in where athletes—and their families—decide to go to school.
Revenue-Sharing: A Game-Changer
June 2025 brought another big change with the settlement of the House v. NCAA lawsuit. Now, Division I schools can share up to 22% of their profits with athletes. The percentage is based on the average earnings from media rights, ticket sales, and sponsorships at Power Five schools.
There’s a cap, too—$20.5 million in 2025, with a 4% bump each year. That’s quite a shift in how money flows in college sports.
Impact on School Budgets
This new revenue-sharing setup means schools have to rethink their budgets. They’re reorganizing finances and rewriting contracts to make sure they hit the revenue-sharing targets.
The College Sports Commission is now in charge of making sure everyone plays by the rules and that the money gets where it’s supposed to go.
Case Study: NiJaree Canady
Take NiJaree Canady, a star softball pitcher for Texas Tech. She’s a great example of how NIL deals can sway where athletes land. In 2024, she inked a $1 million deal with Texas Tech’s NIL collective, the Matador Club.
She re-upped in 2025 for even more—over $1 million—to stick around at Texas Tech. Her manager, Derrick Shelby of Prestige Management, says the school’s support played a big part in her decision to stay put.
Strategies for Navigating NIL
If you’re a student-athlete hoping to cash in on NIL, a few things are worth keeping in mind:
- Stay on top of taxes: Track all income and expenses, set up a business structure if it helps, and stick to a budget.
- Build your brand early: Lean into your strengths—could be your sport, academics, social media, or even community work.
- Understand your school’s legal jurisdiction: Know your state’s NIL rules and get to know your school’s compliance office.
- Use collectives carefully: Make sure everything’s transparent and fair, and keep Title IX in mind if you’re working with a collective.
- Rely on school resources: Don’t ignore the counseling, workshops, and deal support your school offers. They’re there for a reason.
The Pressure of Semi-Professional Status
With NIL and revenue-sharing, some student-athletes are basically semi-pros now. That means more money and fame, but also a lot more pressure.
It’s not always easy. The stress and mental health challenges are real, especially for young adults juggling school and sports. Schools have got to step up and make sure athletes get the support they need.
Challenges for Smaller Schools
Big sports schools have an edge when it comes to attracting top talent. Smaller schools? They’ve got to get creative if they want to compete.
Some are looking at new revenue streams—think stadium concerts or renting out facilities. Stanford, for example, brought in Coldplay for a concert to help boost its bottom line. Not a bad move, honestly.
Conclusion: Adapting to a New Landscape
The arrival of NIL and revenue-sharing has shaken up college sports in a big way. Athletes can now earn money, sign sponsorships, and start building their brands—sometimes before they’ve even played a game.
Of course, with all this change, there are new headaches too. Schools face tighter budgets, and athletes need better support systems to navigate these opportunities.
It’s a lot to keep up with, honestly. Students, schools, and lawmakers are all trying to figure out what comes next and how to keep things fair.
Curious about the reasons behind college athletes getting paid? You can dive deeper with the full article on Investopedia.
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