
A source from Mr Hughes Law Site
https://www.mrhugheslaw.com/ncaa-nil-reform-2025-direct-compensation-from-schools-explained/
"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.
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Our season in basketball will probably be over before the final game. We need to add taller and better players. We all know the NIL process will not help us.
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