Dept. of Education says NIL pay must be Title IX compliant

The Department of Education's Office for Civil Rights (OCR) issued its first formal guidance toward name, image and likeness rights in college athletics on Thursday, requiring schools to distribute NIL opportunities and resources proportionally to male and female athletes.

A Sportico report said the OCR released a "fact sheet," which reinforced that the gender-equity standards used to award athletic scholarships also apply when handing out NIL money. The fact sheet said that NIL deals are part of a school's financial aid for athletes, which also comes from grants-in-aid and cost-of-attendance support.

A school would potentially violate Title IX if its NIL payments are not distributed fairly between male and female athletes.

"When a school provides athletic financial assistance in forms other than scholarships or grants, including compensation for the use of a student-athlete's NIL, such assistance also must be made proportionately available to male and female athletes," the OCR's statement said.

The OCR's release comes amid a Title IX lawsuit filed by former female University of Oregon athletes who claim the college unequally distributed NIL opportunities through its Division Street collective.

The release also comes with settlement objections for the House v. NCAA class-action suit due Jan. 31. If officially finalized this spring, the settlement would award roughly $2.8 billion to thousands of former college athletes who were not paid for their name, image and likeness usage.

Schools would be capped at $20.5 million in revenue to distribute during the 2025-26 academic year if the settlement is reached. However, the OCR's guidelines will likely alter the allocation strategies of many schools, with some currently planning to set aside $15 to $17 million strictly for football, according to On3.

Also in the fact sheet, the OCR also clarified its guidelines for NIL money generated through third parties, reiterating that those funds must also be distributed proportionally between male and female athletes.

"OCR has long recognized that a school has Title IX obligations when funding from private sources, including private donations and funds raised by booster clubs, creates disparities based on sex in a school's athletic program or a program component," the release said.

"The fact that funds are provided by a private source does not relieve a school of its responsibility to treat all of its student-athletes in a nondiscriminatory manner."

The only previous guidance from OCR regarding gender equity in NIL payments came through a general statement issued to ESPN in July 2024.

--Field Level Media