The U.S. Department of Education’s Office for Civil Rights (OCR) has issued new guidance clarifying that direct payments to student-athletes for their name, image, and likeness (NIL) by colleges must comply with Title IX regulations. Title IX mandates that financial assistance be distributed equitably among male and female athletes. If NIL payments are considered athletic financial aid, they must be proportionately allocated to avoid sex-based discrimination.
This guidance impacts universities’ plans for revenue-sharing agreements, particularly those where payments would predominantly benefit male football and basketball players. Such arrangements could violate Title IX if they result in unequal financial assistance between male and female athletes.
The OCR’s fact sheet also suggests that third-party NIL agreements closely associated with schools may fall under Title IX scrutiny, requiring institutions to ensure these arrangements do not lead to discriminatory practices.
NCAA officials and athletic directors are currently assessing the implications of this guidance to determine necessary adjustments to their NIL policies and revenue-sharing models to remain compliant with federal regulations.
Photo Credit: Jack Spitser/Spitser Photography
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