NMSU and UNM Face Lawsuit Over NIL Transparency Issues

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The New Mexico Foundation for Open Government (NMFOG) has filed lawsuits against New Mexico State University (NMSU) and the University of New Mexico (UNM), demanding transparency in their Name, Image, and Likeness (NIL) and revenue-sharing records.

This legal move challenges the universities’ refusal to share these documents, which NMFOG says violates New Mexico’s Inspection of Public Records Act (IPRA).

The universities, meanwhile, claim these records are protected by federal privacy laws and are considered trade secrets.

All this comes after the House vs. NCAA settlement, which has changed college sports by letting schools directly share revenue with athletes.

Whatever happens with these lawsuits could set a new standard for how NIL and revenue-sharing deals get handled across the country.

The Lawsuits and Their Implications

NMFOG’s lawsuits are among the first of their kind in the U.S.

The group is pushing for more openness in NIL compensation and revenue-sharing agreements, especially after the House vs. NCAA settlement.

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That settlement, starting July 1, 2025, lets schools share revenue directly with athletes, shaking up the old dynamics of college sports.

Details of the Lawsuits

NMFOG says both NMSU and UNM have refused to turn over records about their NIL and revenue-sharing agreements.

The organization argues these records are public and should be available for inspection under IPRA.

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They claim the universities are misusing the Family Educational Rights and Privacy Act (FERPA) and other laws to keep these documents hidden.

Amanda Lavin, NMFOG’s Legal Director, says the lawsuits also seek records on which athletes might lose roster spots due to the House settlement and internal emails about how the universities are rolling out revenue-sharing.

They’re asking the courts to make the universities comply with IPRA, fix any violations, and pay damages and attorneys’ fees.

Universities’ Defense

NMSU and UNM say they’re following federal privacy laws and that these records are trade secrets.

They argue that releasing the documents would break FERPA and maybe reveal sensitive info.

NMFOG disagrees, saying that even if some details are protected, the universities could just redact them and still release the records.

Specific Incidents

On July 2, 2025, plaintiff Nick Nuñez asked NMSU for all its NIL and revenue-sharing contracts, plus documents showing which athletes would lose roster spots under the House settlement.

After saying several times that there were no records, NMSU eventually admitted the records existed but still didn’t provide them.

NMFOG made similar requests to UNM, but got back only heavily redacted documents or flat-out denials.

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Impact on College Sports

These lawsuits are landing at a time when there’s a lot of national focus on how payments to student-athletes are handled.

The House vs. NCAA settlement has already changed the game by allowing direct revenue-sharing, and these lawsuits could shape how these deals are managed and disclosed going forward.

Financial Constraints

Both NMSU and UNM have said money is tight, which keeps them from distributing the full amount of revenue allowed under the House settlement.

UNM athletics director Fernando Lovo said financial limitations would stop the university from sharing up to the roughly $20.5 million that’s allowed.

NMSU acting athletics director Amber Burdge didn’t say exactly how much revenue would be shared, just that the model would “make sense.” A bit vague, honestly.

Legal and Ethical Considerations

NMFOG insists that transparency is key to making sure student-athletes get fair treatment and that public funds are used responsibly.

They argue that secrecy around these deals blocks accountability and keeps athletes and the public guessing about whether the contracts are actually fair or even legal.

Title IX Compliance

One big question NMFOG raises is whether the money universities are paying athletes is compliant with Title IX.

Title IX is a federal law that bans sex-based discrimination in education, including sports. Transparency in these agreements is critical for making sure everyone’s playing by the same rules and student-athletes are treated fairly.

Conclusion

The lawsuits filed by NMFOG against NMSU and UNM could shake up how transparency and accountability are handled in NIL and revenue-sharing agreements in college sports. There’s a real chance these cases will set a new standard for how records like these get disclosed across the country.

Universities, student-athletes, and plenty of legal experts are watching closely. It’s not a stretch to say the outcome could change the whole landscape of college sports.

If you’re curious and want the full details, check out the article on the Las Cruces Sun-News website.

Joe Hughes
Joe Hughes is the founder of CollegeNetWorth.com, a comprehensive resource on college athletes' earnings potential in the NIL era. Combining his passion for sports with expertise in collegiate athletics, Joe provides valuable insights for athletes, fans, and institutions navigating this new landscape.

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