Legal Defense Strategies | The Legal Edge: NIL
Issue Date: March 20, 2026 | Issue #37
A Quick Welcome from the Founder
A few weeks ago, a reader asked me to "break down Athletes.org’s CBA proposal" and flagged the core question: If college athletes are going to bargain, who exactly are they bargaining with, and where do we draw the line on which sports are in or out?
It’s the right question at the exact right time. AO has released a 35-page discussion-draft CBA framework that aims to replace the current NIL/collective patchwork with a standardized system. This is happening while the White House is publicly pushing for a model where athletes get professional-grade protections and pay, but without being classified as traditional employees.
Today, we look at the blueprint for the "New Private Entity" and the legal tightrope it walks.
Sincerely,
Rebekah Ballard, 3L
This Week’s Strategic Insight
The Proposal: Standardizing the "Athlete Services" Contract
AO isn't pretending anymore. Their framework reads like an NFL or NBA CBA term sheet. Instead of the "NIL" fiction, the model introduces a Standardized Athlete Services Contract.
The Core Shift: Institutions pay athletes directly for athletic services. This folds Alston money, cost-of-attendance, and revenue sharing into one single agreement.
Third-Party NIL: Brand deals remain uncapped but are subject to "anti-circumvention" rules, preventing boosters from using "marketing deals" to bypass the league’s salary caps.
The "Pro-Style" Reality: A football player signs one contract with the school for their "base" pay and revenue share, then signs separate, legitimate marketing deals on top of it.
The Counterpart: Who is the "Employer"?
My reader’s instinct about a "new private entity" was spot on. AO’s framework assumes the existence of a League-Side Bargaining Entity, likely the College Sports Commission (CSC) or a parallel body.
The NFL Model: Much like the NFL negotiates with the NFLPA, schools would join this central body, which would negotiate with AO on their behalf.
The "Non-Employee" Loophole: AO is a 501(c)(4) "players association," not a traditional union. They are floating a model similar to SAG-AFTRA, which represents independent contractors.
The Political Alignment: This matches the President’s "middle-lane" goal: giving athletes the bag and the seat at the table without the "Employee" label that would trigger massive tax and administrative headaches for universities.
Drawing the Line: Who Gets a Seat?
The hardest part of any CBA is deciding who it covers. AO’s draft is built around football, but it claims to be a template for all.
Sport-Specific CBAs: AO anticipates separate agreements for Football, Men’s/Women’s Basketball, and Olympic Sports.
Pro Rata Revenue: Caps and floors would be set "per sport per conference," meaning an SEC Football floor looks very different from an SEC Volleyball floor.
The Political Risk: If Congress follows the President's lead and creates this "non-employee bargaining lane," someone has to decide who gets in. Is it just Power Conference football? Or every D1 athlete? Drawing that line carries massive Title IX and antitrust consequences.
The Watch List: What to Track This Month
As this framework moves from "discussion draft" to potential policy, watch these three pressure points:
The Bargaining Counterpart: Do the Power Conferences coalesce into a single "League" entity to meet AO at the table, or do they splinter?
The "Employee" Cases: Watch how the NLRB and state-law cases (like those in California) react to this non-employee pitch. Will regulators accept a "middle lane," or demand full employee status?
The White House Signal: Watch for the President or key members of Congress to start using AO-style terminology (e.g., "Athlete Services Contracts") in draft legislation.
Stop making decisions about us, without us, and expecting us to play by your rules. If there is a real conversation about fixing college sports, it starts with us at the table and ends with a fully negotiated, collectively bargained agreement.
NIL Quick Hits
Wisconsin’s NIL Bill
The Wisconsin Senate narrowly passed a bill that would send taxpayer money to UW-Madison to help cover athletic facility debt and maintenance, freeing up more athletic department funds for NIL-related athlete payments.
Mississippi NIL Tax‑Break Bill Dies
Mississippi’s legislature killed a House‑passed bill that would have exempted student‑athletes’ NIL income from the state’s income tax, leaving athletes in the state liable for state taxes on those earnings.
Read the full story here: https://www.supertalk.fm/nil-tax-exemption-bill-dies-in-mississippi-senate/
Legal Lingo Explained
What is ‘Non-Statutory Labor Exemption’?
A legal shield that allows pro sports leagues (like the NFL) to "collude" on things like salary caps and drafts without violating antitrust law, provided those terms were reached through Collective Bargaining.
Why it matters in 2026:
The House settlement is fragile because it wasn't "bargained,” it was a court settlement. AO is betting they can import the NFLPA-vs-NFL model to trigger this legal shield without importing employee status.
Your Toolkit
Athlete Pro Tip
Standardization brings security, but it also brings 'Caps.' If the AO model becomes law, the days of unlimited, unregulated 'Collective NIL' money are over.
You will gain health insurance and grievance procedures, but you will be trading away the 'Wild West' upside of the current market. Make sure you're reading the fine print on 'anti-circumvention' clauses.
What’s Next?
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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.