The NCAA has been searching for a framework to regulate name, image and likeness, or NIL, since the policy was established in June 2021. Four summers later, a possible foundation is near, but no change will be without implications, especially for top athletic programs like the University of Florida.
These changes have loomed for almost a year. President Donald Trump publicly considered an executive order May 2 to examine the state of NIL payments. Schools and athletes must heavily consider how these developments will impact their programs.
The prominent NIL discussion surrounds the House settlement. Lawsuits by current and former college athletes are pursuing a settlement of nearly $2.8 billion that will attempt to establish a future framework for NIL agreements.
Philip Nickerson, a Troutman Pepper Locke law firm associate who represents universities and collectives in NIL matters, said the settlement contains four major parts: allowing schools to pay athletes themselves for use of their NIL with an annual budget of $20.5 million, the potential for roster caps, NIL compliance and enforcement oversight, and backpay for former and current athletes who were unable to profit from their NIL.
In his personal interpretation, this could mean many of UF’s resources responsible for its success could become less prominent, Nickerson said.
“It puts a limit on how much they can spend, which means that smaller schools that maybe don’t have the same athletic budget or donor base have a chance to compete for the prized recruits and remain competitive,” Nickerson said. “I think it’s going to level the playing field across all college sports.”
UF would be forced to rely on its coaches and recruiting staff even more to out-recruit other schools for star high school athletes and in the transfer portal.
Christopher Batts, an attorney at ShuffieldLowman, represents students and institutions navigating NIL deals.
“I think the real impact is going to be on the school, and then that’s going to trickle down to the athletes,” Batts said. “Trying to divide up $20.5 million amongst a bunch of really good athletic programs is going to be way more difficult than for schools that are known just for basketball or just for football.”
Title IX compliance will complicate the issue, he said, but it will also prevent schools from putting all of the allotted $20.5 million into their higher-revenue sports like football and men’s basketball.
Even with these changes, Batts said there’s likely more to come.
“I think it opens just as many new issues as it resolves,” he said. “It doesn’t address Title IX. It doesn’t introduce collective bargaining.”
UF Director of NIL Strategy Ben Chase said Florida is more than ready to handle whatever changes head its way.
“Our goal here at Florida is to make sure that we give our athletes the opportunity to compete at a high level across all the sports we have,” Chase said. “There’s a lot of schools out there that are cutting sports, including at the Power Four level, and we don’t plan on doing that.”
He doesn’t foresee the changes affecting investments from donors and partners who have been a huge part of the success of Gator sports, he said. Instead, Chase sees benefits in the new settlement because it allows the UF Athletic Department to share the revenue with its athletes.
Chase said he’s excited about the opportunities UF’s athletes will have going forward, including more NIL deals.
“I think that where we are headed is true corporate NIL partnerships that are with athletes that may have never gotten those deals before,” he said.
A decision is expected to be made on the settlement in the next few months if executive action isn’t taken sooner.
Contact Ava DiCecca at adicecca@alligator.org. Follow her on X @avadicecca24.
