Title IX in the NIL and Revenue Sharing Era: Scholarships, NIL, and Athlete Pay
The landscape of college sports is shifting rapidly with NIL deals and new revenue-sharing models. While NIL deals from outside businesses are not regulated by Title IX, schools still have obligations to make sure men and women athletes have equal institutional support and opportunities. Scholarships and financial aid, however, are explicitly covered by Title IX and must be distributed equitably.
Does Title IX apply to NIL and athlete pay?
No, Title IX does not apply to NIL payments, as clarified by the U.S. Department of Education in February 2025. NIL deals are contracts between athletes and third parties, not the university, so they fall outside Title IX’s scope. However, schools are responsible for providing equal opportunities for athletes to develop their brands and to access NIL education or resources. For example, if a school promotes men’s athletes on social media but neglects women’s athletes, that could create an equity issue.
So while schools can’t control the market, they are responsible for providing a fair environment. Inequities in workshops, promotional opportunities, or staff support for NIL activity may be challengeable under Title IX.
Does Title IX cover scholarships?
Yes. Schools must award athletic scholarship aid in proportion to the gender breakdown of their athletes. This doesn’t mean men and women’s programs split the money equally; rather, if 55% of the overall number of students enrolled at the institution are women, approximately 55% of scholarship dollars should go to female athletes.
The law also requires fair recruiting practices and equal access to scholarship opportunities. A discrepancy in distribution could be investigated by looking at percentages, not just raw numbers of scholarships.
Does Title IX apply to new revenue sharing models in college sports?
Yes, any university-administered revenue – such as cash benefits tied to athletics participation – must comply with Title IX. That means schools have to ensure revenue-sharing is proportional and nondiscriminatory between men’s and women’s athletes as it relates to overall enrollment rates at the institution.
This issue is still developing, but the core principle holds: if the school is the one directing or distributing the benefits, those benefits must be fairly allocated under Title IX.
