Title IX and NIL: Could This Rule Change Upend College Sports?
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The NCAA is on the brink of another shakeup—one that could fundamentally change how schools distribute money to athletes.
Just as universities were finalizing their plans for direct NIL payments, the U.S. Department of Education’s Office for Civil Rights (OCR) issued a game-changing memo.
What’s the Big Deal?
The OCR says NIL money from schools counts as athletic financial aid.
That means it must be distributed equally between male and female athletes—just like scholarships.
Schools that favor football and men’s basketball in their NIL payment plans could face Title IX violations, lawsuits, and federal penalties.
What happens now? Will schools have to scrap their NIL payment plans before they even begin? Could this lead to legal battles over Title IX compliance?
Let’s break it down.
How Did We Get Here?
For decades, college athletes were prohibited from profiting from their name, image, or likeness (NIL). That changed in 2021 when new NCAA rules allowed student-athletes to sign brand deals, endorsements, and sponsorships—opening the floodgates for multi-million-dollar opportunities.
Then came the House Settlement, a revenue-sharing model that—if approved—would allow schools to pay athletes directly, with some of the biggest schools set to distribute $20.5 million annually to student-athletes.
Enter Title IX.
The OCR’s new guidance, issued earlier this month, states that if schools pay athletes for NIL, those payments must comply with Title IX, which mandates:
Equal benefits, opportunities, and treatment in athletic programs.
Athletic financial aid distributed proportionally between male and female student-athletes.
Varsity sports opportunities in proportion to gender distribution on campus.
The problem? Most schools planned to allocate NIL money primarily to football and men’s basketball players, which, according to the OCR, would violate Title IX.
How NIL and Title IX Collide?
1. NIL Compensation from Schools is Now Considered Athletic Financial Aid
If a school directly compensates student-athletes for their NIL, it counts as financial aid under Title IX.
That means schools must distribute NIL-related financial benefits proportionately between men’s and women’s sports.
What This Means: Schools can’t pay only football and men’s basketball players—they must include female athletes in NIL payments to remain compliant.
2. Publicity and Branding Opportunities Must Be Equal
Schools cannot favor male or female athletes when providing media exposure, promotional resources, or branding support.
If schools offer NIL-related training (business development, contract negotiation, social media strategy), they must offer it equally to men’s and women’s teams.
What This Means: Schools must provide equal visibility for female athletes, or they risk limiting their NIL opportunities—which could lead to Title IX violations.
3. Third-Party NIL Deals Are a Gray Area
NIL money from third-party collectives (boosters, brands, businesses) does NOT count as athletic financial aid.
However, if booster-backed NIL collectives create gender-based disparities, schools may still be held liable under Title IX.
What This Means: The OCR is leaving the door open for future enforcement if third-party NIL deals skew too heavily toward male athletes.
What’s Next?
This issue is far from settled, and the coming months could shape the future of NIL in college sports. Here’s what to watch for:
1. Will Schools Change Their NIL Payment Plans?
Many schools expected to funnel most NIL money to football and men’s basketball.
Now, they may have to rework their plans to include female athletes—or risk lawsuits.
2. Could the NCAA Face More Title IX Lawsuits?
Female athletes are already suing over the lack of NIL access.
More lawsuits could be coming, especially if schools fail to comply with this new guidance.
3. Will Third-Party Collectives Step Up?
Since Title IX does not apply to NIL money from third-party brands, boosters may step in to provide more opportunities for male athletes.
However, if these deals create major gender disparities, schools could still face legal challenges.
4. Will the Courts or Congress Intervene?
The House Settlement is already under review.
If courts decide Title IX must apply to revenue-sharing agreements, it could delay or change the entire model.
Final Thoughts: The Battle Over NIL and Title IX is Just Beginning
OCR’s latest memo has thrown a major wrench into how universities planned to distribute NIL money. Schools must now rethink their NIL payment strategies to ensure compliance—or face lawsuits, penalties, and federal scrutiny.
What do you think? Should Title IX apply to NIL payments from schools? Should athletes be able to receive unequal NIL deals based on market demand?
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