AROUND NIL THIS WEEK | MAY 26, 2025

Texas joins wave of states OK'ing direct NIL pay to athletes

May 30, 2025—Texas lawmakers have cleared the runway for universities to pay athletes directly for their name, image, and likeness, with House Bill 126 now on the governor’s desk. The bill was pushed through after college leaders warned that Texas schools would lose top recruits to states already embracing direct NIL payments. The law limits deals to athletes 17 and older, bans endorsements for alcohol, tobacco, and adult businesses, and requires a financial literacy course. Texas is making this move to stay in step with a looming NCAA settlement that will send millions to Division I schools for athlete pay—money Texas schools would have missed out on without this legal update. Once signed, Texas joins Virginia, Georgia, Oklahoma, Ohio, Arizona, and Louisiana as states giving universities the green light to pay athletes directly.

Update: Governor Greg Abbott signed House Bill 126 into law on June 5, 2025. Because the bill passed both chambers with a two-thirds supermajority, it took effect immediately upon signing. Texas colleges can now directly pay student-athletes for their name, image, and likeness, making Texas one of the earliest states to enact this change without delay.

Texas Longhorn Christiaan Maas during the 2025 Southwestern Invitational | Alamy

All eyes on Judge Wilken as NCAA awaits settlement ruling

May 30, 2025—Judge Claudia Wilken has not yet issued final approval of the $2.8 billion House v. NCAA settlement, citing ongoing concerns that new roster limits could leave thousands of athletes without spots. The latest settlement revision protects current 2024-25 athletes and incoming 2025-26 recruits with promised roster spots, but schools aren’t required to reinstate players already cut; that decision is left to each institution. Legal experts note these changes may not fully satisfy Wilken, who specifically called for “grandfathering” all current athletes to avoid immediate harm. If the settlement is rejected, the NCAA faces the risk of trial and potentially steep damages. Many schools have already started reducing rosters in anticipation, even though nothing is enforceable until court approval. Since the April 7 hearing, there have been no significant updates in the past two weeks. All parties now wait for Wilken’s decision, which could come at any time, with no set timeline.

Update: On June 6, 2025, Judge Claudia Wilken granted final approval to the House v. NCAA settlement, signaling a landmark moment for college sports. MORE

NIL Go’s strict reviews put college NIL deals under microscope

June 1, 2025—NIL Go is Deloitte’s new NCAA clearinghouse for NIL deals over $600, and it’s already under fire from coaches, legal experts, and administrators. The platform goes live just days after the House settlement, using a fair market value algorithm to review deals and flag anything that doesn’t meet NCAA standards. Deloitte’s own numbers show that 70% of past collective deals wouldn’t have cleared, while 80% of public company deals come in under $10,000—a sign that payouts from collectives could drop fast.

Georgia’s Kirby Smart and others are bracing for a flood of submissions as schools push the system’s boundaries. There’s real worry that even deals promised to recruits could get shot down, and legal experts see lawsuits on the horizon over how the rules are enforced. With a strict review process and shaky legal ground, NIL Go is already a lightning rod. MORE