Texas NIL Rules for Student Athletes

What athletes, parents, schools, businesses, agents and attorneys should know.

September 15, 2026

Texas does not have one NIL rule for every athlete. The governing rules depend on the athlete’s age, school, athletic association and the party paying for the deal. At every level, compensation should be tied to an actual use of the athlete’s name, image or likeness, such as a social-media post, appearance, endorsement, autograph signing, camp or clinic. A payment for athletic performance, participation or enrollment is generally prohibited.

Texas NIL Rules at a Glance

Athlete level	General rule	Main limits
Youth under 17	Generally barred	If the athlete is a prospective college athlete and is not already enrolled in college, Texas law bars an NIL arrangement with the athlete or a relative.
UIL high school	Age-based limits	Age 16 or younger: no NIL agreement. Age 17 or older: only with a postsecondary institution while UIL eligibility remains. Third-party deals must wait until eligibility in that sport is exhausted.
TAPPS high school	Highly restricted	Current amateur rules prohibit value for participation in a TAPPS sport or for promotion connected to a TAPPS contest. Obtain a written eligibility review before any NIL deal.
JUCO and NJCAA	Third-party NIL allowed	No institutional payment, enrollment inducement or pay-for-play. School policy and applicable Texas law may add requirements.
NCAA Division II and III	Third-party NIL allowed	No direct university NIL pay or athletics/NIL revenue sharing; third-party NIL remains permitted. No pay-for-play or recruiting inducement.
NCAA Division I	Third-party and some school payments	Third-party deals of $600 or more must be reported through NIL Go. Participating schools may make direct payments within the annual benefits cap.

Youth and High School Athletes

Texas law prohibits NIL arrangements with prospective student athletes younger than 17, or with the athlete’s relative, unless the athlete is already enrolled in college. Because the statute does not define exactly when a young athlete becomes a prospective student athlete, businesses should use a conservative approach with any under-17 athlete who may compete in college, by seeking legal advice first.

University Interscholastic League (UIL) rules are more specific. An athlete age 16 or younger may not sign an NIL agreement with a college, company, collective or other organization. An athlete age 17 or older may sign an NIL agreement only with a postsecondary institution while UIL eligibility remains. A third-party agreement cannot be executed until the athlete has exhausted UIL eligibility in the applicable sport. The UIL amateur rule applies from the first class day of ninth grade through the end of twelfth-grade athletic competition.

Private-school athletes require a separate analysis. Texas Association of Private and Parochial Schools (TAPPS) Section 103 treats a student as non-amateur if the student receives value for participating in a TAPPS sport or permits the student’s name to be used to promote a product or service related to a TAPPS contest. The current TAPPS rule does not contain the UIL’s broader age-17 postsecondary NIL exception. A TAPPS athlete should obtain written guidance from the school and TAPPS before signing a deal.

Junior College Athletes

The 2026-27 NJCAA bylaws allow student athletes to receive NIL compensation consistent with federal, state and local law and to retain an NIL professional service provider. An NJCAA institution, its faculty or staff, and its official representatives may not directly or indirectly provide NIL compensation. The deal also cannot depend on enrollment at a particular school or compensate athletic performance or participation, except as otherwise allowed by NJCAA rules.

A JUCO athlete who plans to transfer to Division I should keep every contract and payment record. After enrolling at the Division I school, the athlete must report qualifying deals of $600 or more dating from the later of July 1, 2025, or the athlete’s JUCO enrollment. The deadline is generally 14 days after beginning full-time Division I classes or before the first Division I contest, whichever occurs first.

NCAA Division II and Division III Athletes

Division II and Division III athletes may enter legitimate third-party NIL agreements, but—unlike athletes at participating Division I schools, their universities currently may not pay them directly for use of their NIL or share athletics or NIL revenue with them. Division III permits a narrow exception for actual and necessary expenses tied to certain institutional charitable or educational activities. NCAA rules also prohibit pay-for-play and improper recruiting inducements. Athletic departments personnel may not represent or negotiate for the athlete. These NIL restrictions do not prohibit ordinary scholarships, permissible benefits or generally available student services.

NCAA Division I Athletes

All Division I athletes must report third-party NIL contracts or payments worth $600 or more through NIL Go. Multiple payments from the same or substantially the same payer are aggregated. Written documentation generally must be submitted within five business days after the athlete signs the agreement or agrees to the payment terms. The deal must include real NIL services, advance a valid business purpose and provide reasonable compensation.

Participating Division I institutions may also make direct payments and provide additional benefits under the House Settlement. For the 2026-27 academic year, the institution-wide benefits cap is approximately $21.58 million. That is a cap on the school’s covered payments and benefits, not an individual athlete’s outside NIL earnings.

Texas Rules for Covered Colleges

At Texas colleges covered by Education Code Section 51.9246, a current athlete must disclose a proposed NIL contract to the institution before signing it. The contract cannot conflict with a team contract, institutional contract, athletics policy or honor code, and its term cannot extend beyond the athlete’s participation in the intercollegiate program. School facilities, uniforms, logos, trademarks and copyrighted materials require the school’s express permission.

Texas law also prohibits NIL compensation for athletic performance and endorsements involving alcohol, tobacco or nicotine products, anabolic steroids, sports betting, casino gambling, certain firearms and sexually oriented businesses. H.B. 126, effective June 5, 2025, permits conduct authorized or required by an applicable athletic association, conference rule or final court order, subject to those governing rules.

Before Signing an NIL Agreement

Confirm the athlete’s age, school, governing association and remaining eligibility.
Submit the proposed contract to the compliance office before signing when required.
State the exact deliverables, payment amount, schedule, term, exclusivity and termination rights.
Obtain written permission before using school uniforms, facilities, photographs, video or trademarks.
Address taxes, minor-contract issues and the representative’s authority and registration status.

NCAA and NJCAA rules permit professional NIL assistance, but Texas athlete-agent registration and contract requirements may apply depending on the services provided. NIL income is generally taxable, including compensation paid in products or services.

Conclusion

The safest approach is to identify the athlete’s governing rules before discussing compensation and to complete any required school or NIL Go review before the agreement takes effect. The rules can change by academic year, and individual schools may impose additional requirements. Contact [email protected] with any questions prior to entering into an NIL deal.

This article provides general information and is not legal advice. It does not create an attorney-client relationship.