Making “Smart NIL Choices, Informed by Law.”
December 17, 2025
Welcome back! We're moving from a period of legislative uncertainty to one of enforcement showdowns.
In this memo, we will analyze the Texas Attorney General's aggressive move against the post-House v. NCAA settlement authority and the accelerating trend of state-level agent regulations, including Florida's new fee cap.
[IMPORTANT NOTICE]: This newsletter provides general educational insights. Please see the full legal Disclaimer at the bottom of this email before acting on any information.
Article 1
Texas AG Targets Post-Settlement Authority
The anticipated era of NIL enforcement following the House settlement has hit a major roadblock in Texas. Texas Attorney General Ken Paxton has formally urged the state's Power Conference schools (including Texas, Texas Tech, TCU, Baylor, and Houston) not to sign the College Sports Commission (CSC) Participant Agreement.
What the AG's Intervention Means
The CSC agreement, created to enforce the new NIL and revenue-sharing rules from the House settlement, requires all Power Conference schools to sign it before it becomes enforceable.
The Lawsuit Waiver: The Texas AG's primary concern is that the agreement requires schools to waive their legal rights to sue the CSC and even subjects them to punishment if entities like the state Attorney General sue the CSC on the school's behalf. Paxton called it "unthinkable" that a school would agree to be penalized for actions taken by a state official.
Conflict with State Law: The AG asserts the agreement's terms (which cover rules on revenue sharing, NIL deal approval, and a ban on "pay-for-play" NIL deals) would require Texas schools to violate existing state laws and university rules.
Impact on Collectives/Donors: The agreement would have made schools potentially liable for rules violations committed by their associated NIL collectives. By blocking the agreement, the direct enforcement oversight over collectives and donors is weakened, allowing the current, highly aggressive NIL environment to persist without immediate institutional control mandated by the settlement.
Schools and collectives in Texas (and potentially other states whose AGs follow suit) are now in a legal gray zone. Compliance efforts must prioritize existing Texas state law over the terms of the House settlement's enforcement mechanism, until this legal conflict is resolved.
Article 2
States Move to Cap Agent Fees and Mandate Registration
While federal legislation stalls, states continue to advance their own protections for student-athletes, primarily focusing on regulating the agent marketplace. New state-level and proposed federal bills demonstrate an accelerating trend toward limiting agent fees and reinforcing mandatory registration.
Florida's Fee Cap (Effective July 1, 2025): Florida passed a bill that limits athlete agent fees to no more than 5% in deals with NIL collectives. This directly targets the perceived issue of predatory commission rates charged to young athletes and introduces a significant compliance boundary for agents working in that state.
Federal Legislative Trend: Proposed federal bills like the HUSTLE Act (introduced by Senators Cantwell and Blackburn) mirror state actions by aiming to:
Require agents to register with a state and prohibit unregistered agents from representing student-athletes.
Cap agent fees (also at 5%).
Strengthen the Sport Agent Responsibility and Trust Act (SPARTA) to protect athletes against financial exploitation and deceptive practices.
Why Registration Matters: Every state's requirement for a surety bond and/or financial liability insurance (discussed in a past memo) is tied to the registration process. An agent must register in the state where they conduct business to ensure their contract is legally valid and to provide financial recourse for the athlete in case of negligence or fraud.
The trend is clear: non-registered agents face obsolescence. Agents must proactively ensure they meet all state-specific registration, bonding, and fee-cap requirements in every jurisdiction where they operate to prevent their contracts from being declared void.
Next Steps: Resources to Stay Compliant
To navigate the evolving state laws and enforcement risks detailed above, use these quick-reference compliance tools:
🔍 Compliance Trackers
“50-State NIL Law Tracker”: Use this to quickly verify prohibited categories (like gambling or alcohol) and institutional involvement rules for every state where your athletes compete or your deals originate.
“Agent Registration State Tracker”: Instantly check the Agent Registration Req.? column for every state where you plan to conduct business. This is your primary defense against having contracts declared void due to non-compliance.
"NIL Compliance Awareness Quiz": A quick quiz designed to test your foundational knowledge on key NIL concepts like "pay-for-play" and disclosure rules.
✅ Advisor Tools
“NIL Advisor Checklist”: A step-by-step checklist for agents and advisors to ensure ethical and legal compliance during client intake and contract negotiation.
“5 Essential Questions for Your NIL Advisor”: A critical guide for athletes and parents to perform necessary due diligence before engaging an agent or financial advisor.
Disclaimer: This newsletter provides educational insights and general information related to the legal side of Name, Image, and Likeness (NIL). It does not constitute legal, financial, or professional advice, and should not be relied upon as such. This content is for informational purposes only, and you should always consult with a qualified professionals for advice tailored to your specific situation.
NIL laws are constantly evolving, and the information provided might not be the most current at all times.