National Champions, Office of Civil Rights & Department of Justice | NIL Blitz: Jan. 13 - Jan. 19

Welcome to this week’s NIL Blitz, where we’re unpacking the latest developments shaping college sports. (To say there was a lot going on yesterday would be an understatement, so we'll take today instead to get you up to speed.)

This edition features federal agencies’ influence on NIL, Title IX challenges, and the NCAA Convention, along with the CFP Championship’s impact on the NIL landscape. Plus a hearty helping of déjà vu.

Here’s what we’re covering:

1. Nothing New Under the Sun ??
2. Office of Civil Rights NIL Factsheet ??
3. DOJ and the House Settlement ??
4. RECAP: NCAA Convention 2025 ??
5. College Football Finale ??

1. Nothing New Under the Sun ??

Federal agencies are once again weighing in on NIL and athlete compensation, echoing a familiar story. Last week, memos from the Department of Education's Office of Civil Rights (OCR) and the Department of Justice (DOJ) outlined concerns with impending athlete compensation frameworks.

I suggest you dig into them yourselves, but in a nutshell...

• OCR: Warned of Title IX compliance challenges as schools explore revenue-sharing models
• DOJ: Raised antitrust concerns over salary caps and hinted at potential litigation if caps remain fixed

Sound familiar?

If you follow me on X you might've caught my soapbox post late last week. Here's a little historical context story time...

In January 2021, a week prior to President Biden's inauguration and days before the NCAA Convention, the DOJ sent a memo to the NCAA that profoundly impacted the NIL industry.

In short, the memo made a compelling statement to give the NCAA pause on the NIL regulatory framework that had been drafted. It was days away from being voted on by the NCAA membership, and included solutions to many of the problems that have been experienced these past 3.5 years (e.g., lack of transparency, standardization, etc.).

The result of the memo? While nothing beyond parting words from the DOJ, it ultimately tabled the proposed NIL framework and led to state laws dictating the course of action.

Flash forward to this week and it's deja vu. We are in NCAA Convention week and days away from an inauguration which is set to bring in a new administration. Federal officials are strongly cautioning proposed frameworks for athlete compensation which is anticipated to be the largest change in the college sports landscape.

I am not saying history will repeat itself, but it is hard to ignore the pattern. Words carry weight, even if they are from a departing administration.

As we approach the largest change in college sports history, the echoes of years past are unmistakable. The impact of these new memos may similarly ripple through the industry, influencing policies and compliance efforts for years to come.

2. Office of Civil Rights NIL Factsheet ??

Okay, big picture done. Let's dig into the individual pieces.

The Department of Education’s OCR released a fact sheet addressing how NIL and revenue sharing intersect with Title IX. While not legally binding, the guidance provides critical insights into compliance expectations. Key points include:

1. Equal NIL Support: Schools must provide male and female athletes with balanced resources for securing and managing NIL opportunities. (This has been the general practice at schools for the past 3.5+ years.)
2. Publicity Obligations: Institutions are required to promote all programs equally to help athletes secure NIL deals, including promotion of NIL access points like marketplaces. (This has been the general practice at schools for the past 3.5+ years.)
3. Revenue Sharing = Financial Assistance: Payments to athletes for NIL/rev share count as athletic financial assistance in the same way scholarships and grants do. (This is a big one that raised eyebrows.)
4. Third-Party Risks: Collectives and third-party NIL entities are not immune from Title IX scrutiny. (This is the one which sparked a lot of controversy in the media.)

The guidance underscores the complexities of balancing gender equity in the NIL and revenue sharing eras alike. Take an institution like Texas Tech, which publicly shared their revenue distribution percentages. TTU may be in the minority for publicizing plans, but most P4s I have consistent contact with have their distribution plan in a stable place by now. How much weight does this release carry? Will they face additional scrutiny if these frameworks fail to meet OCR standards?

Title IX is analyzed on an individual institutional basis, so don't expect national standardization of NIL and revenue sharing allocations to be provided. While the main focus is on revenue sharing distribution totals, much of the interpretation of longstanding Title IX applicability (e.g., promotion of student-athlete NIL opportunities, etc.) has been commonly accepted throughout the NIL era resulting in little change.

3. DOJ and the House Settlement ??

One day later the DOJ entered the chat, filing a statement of interest in the House v. NCAA settlement case. The DOJ expressed concerns about the legality of revenue sharing caps, suggesting they could violate antitrust laws by limiting athlete compensation.

Well summarized in Sam C. Ehrlich 's analysis, the DOJ recommended two actions:

• Sever the revenue-sharing cap from the settlement
• Allow athletes to challenge the cap in future litigation

The crux of their argument? Without athlete input, the cap could be viewed as price-fixing, a red flag under antitrust law. While it’s unclear if the Trump Administration's incoming officials will maintain this position, the statement adds a new layer of complexity to the already contentious settlement process.

(Reminder: four years ago, speculation of antitrust violation stopped the original NIL framework.)

4. RECAP: NCAA Convention 2025 ??

Last week’s NCAA Convention in Nashville seemed a bit overshadowed by all the stuff happening in other places. From back home it appeared it was the AFCA's transfer portal chatter and the federal agency notices which stirred the pot, but from the Opendorse colleagues I spoke with who did make the trip to Nashville the topics were twofold.

• Third-Party/Commercial NIL Necessity: Regardless of how the OCR/DOJ scenarios play out, maintaining third-party NIL activity is crucial for success post-July 1. As noted in several past Blitzes, commercial activity's non-capped nature is appealing to many for a competitive advantage.
• Small College NIL Growth: Division II and Division III collectives are gaining traction, signaling the market's expansion beyond Power 4 schools. Resource constraints remain a concern for smaller institutions, but enrollment driving recruiting is the alibi.

Also ICYMI: the Women’s Wrestling was announced as the NCAA's 91st championship, a significant milestone for gender equity.

5. College Football Finale ??

(I know this technically belongs in next week's edition but, hey, how am I not gonna talk about last night's game ??♂?)

The Ohio State Buckeyes capped off an incredible season with a win over Notre Dame in the CFP National Championship. One heckuva season for OSU and their program (s/o Logan Hittle !). Beyond the field, their success also pays dividends for national exposure:

• 18.7M Average Viewers: Ohio State’s playoff games were the most-watched of the postseason, boosting NIL marketability for their athletes.
• Social Media Impact: Buckeye athletes boast 2.7M+ combined IG followers, with 64% aged 18-24—a prime demographic for brands.
• Earnings Potential: Paired with a national title, social media endorsements are set to soar as athletes capitalize on their CFP exposure.

The Buckeyes’ success underscores how NIL and the expanded playoff format are creating unprecedented opportunities for athletes and programs alike.

(Noteworthy: Notre Dame will receive $20M in payouts for their CFP run, more than the next three highest combine. That nice round number of $20M coincidentally mirrors what schools are going to want to cough up for revenue sharing next year.)

Thanks for catching up with this week’s NIL Blitz! Share your thoughts, insights, or questions in the comments or via DMs. I’d love to hear what’s on your mind.

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