A Nebraska football player signs an NIL deal with the university’s multimedia rights partner. The College Sports Commission rejects it. The player files for arbitration.
Meanwhile, a state senator introduces a bill that would prevent any collegiate athletic association from forcing disclosure of NIL contract terms. And the university is simultaneously writing revenue-sharing checks to athletes for the first time in its history.
That is not a hypothetical. That is Nebraska in March 2026.
The landscape for Name, Image, and Likeness in Nebraska has changed more in the past nine months than it did in the four years since the Nebraska Fair Pay to Play Act first took effect in 2021. The House v. NCAA settlement — approved on June 6, 2025 — introduced direct institutional revenue sharing, a new enforcement body, third-party deal scrutiny, roster limits, and $2.8 billion in back damages. It also created a collision between federal settlement terms and state NIL statutes that is now playing out in real time, with Nebraska at the center of the fight.
This guide explains where NIL law stands in Nebraska right now, what the House settlement changed, what the new enforcement regime means for athletes and businesses, and what legal issues Nebraska athletes, families, collectives, and sponsors need to understand going forward.
Horgan Law LLC is a licensed athlete agent and NIL law firm in Omaha, Nebraska. We represent college and high school athletes, NIL collectives, and businesses engaged in athlete endorsement deals throughout the state.
What Did the House v. NCAA Settlement Change?
The House settlement resolved three consolidated federal antitrust lawsuits — House v. NCAA, Hubbard v. NCAA, and Carter v. NCAA — and fundamentally restructured the economic relationship between colleges and their athletes. The settlement was approved by Judge Claudia Wilken on June 6, 2025, and the injunctive relief provisions took effect on July 1, 2025.
The settlement has three core components that every Nebraska athlete and business needs to understand.
Revenue Sharing
For the first time in the history of college athletics, NCAA member institutions are permitted to pay athletes directly. The settlement allows schools to distribute up to 22% of the average revenue generated by Power Five conference schools from media rights, ticket sales, and sponsorships. For the 2025-2026 academic year, that cap is approximately $20.5 million per school, and it increases by at least 4% annually over the 10-year settlement term. Every school in the Big Ten — including the University of Nebraska — has committed to fully funding revenue sharing at the $20.5 million level. The allocation is left to each school’s discretion, but most are directing roughly 75% to football, 15% to men’s basketball, 5% to women’s basketball, and 5% to all other sports combined.
Back Damages
The NCAA and its member institutions will pay approximately $2.8 billion over 10 years to athletes who competed in Division I from 2016 through June 6, 2025. More than 95% of those damages are expected to go to football and men’s and women’s basketball athletes who played at Power Five schools. These payments are currently on hold pending seven separate appeals filed by different groups of athletes challenging various aspects of the settlement.
Roster Limits and Scholarship Changes
The settlement replaced the traditional headcount scholarship model with new sport-specific roster limits. Schools that opt into revenue sharing must comply with these limits. The settlement also allows schools to offer full scholarships to every athlete on a team’s roster — eliminating the old distinction between headcount and equivalency sports. Schools had until the start of each sport’s competitive season to reach compliance with the new limits, with grandfathering provisions for current athletes.
What Is the College Sports Commission and How Does It Affect Nebraska Athletes?
The College Sports Commission (CSC) is the new independent enforcement body created by the Power Five conferences to implement and police the House settlement. The CSC is separate from the NCAA and is led by CEO Bryan Seeley, a former MLB executive. The CSC’s responsibilities include enforcing revenue-sharing rules, monitoring roster limits, and — most critically for Nebraska athletes and businesses — reviewing and approving third-party NIL deals.
Under the settlement, every third-party NIL deal exceeding $600 must be submitted to the CSC for approval through a platform called NIL Go, which launched on June 11, 2025. The CSC uses data from Deloitte and LBI — firms that handle revenue management for professional sports leagues — to evaluate whether a deal reflects the athlete’s fair market value. Deals that exceed fair market value may be flagged as disguised pay-for-play arrangements and rejected.
The compliance numbers suggest significant gaps in enforcement. As of January 1, 2026, the CSC reported only $127 million in cleared deals — a fraction of the estimated $500 million third-party NIL market in basketball alone. Industry analysts attribute part of this gap to a “money dump” by NIL collectives before July 1, 2025, when many collectives fully distributed their funds to avoid CSC scrutiny. But the gap also suggests that substantial NIL activity is occurring outside the reporting framework.
Why Is Nebraska at the Center of the NIL Enforcement Fight?
Nebraska has become the first major test case for the CSC’s enforcement authority. In early 2026, the CSC rejected NIL deals involving Nebraska football players and Playfly, the university’s multimedia rights partner. The CSC determined that the deals lacked sufficient information about what was specifically expected of the athletes in exchange for payment — raising concerns that the compensation looked more like pay-for-play than legitimate NIL endorsements.
The Nebraska players exercised their right under the House settlement to challenge the CSC’s rejection through arbitration. That arbitration proceeding is ongoing, with a decision expected within 45 days of the hearing.
What makes this case nationally significant is the collision between the CSC’s authority and Nebraska state law. The Nebraska Student-Athlete Name, Image, or Likeness Rights Act (Neb. Rev. Stat. §§ 48-3601 to 48-3609, as amended by LB 1137) explicitly prohibits any “collegiate athletic association” from penalizing a student-athlete for earning compensation from NIL activities. If the CSC’s rejection of the Playfly deals is upheld in arbitration, the players or the Nebraska Attorney General could potentially seek a state court injunction under Nebraska law — arguing that the CSC’s action violates the state statute.
Simultaneously, Nebraska State Senator Megan Hunt introduced LB 370, which would prohibit any collegiate athletic association from requiring athletes, schools, agents, or NIL collectives to disclose NIL contract details to the NCAA or any affiliated entity. This bill is a direct challenge to the CSC’s NIL Go reporting requirement and reflects a broader trend of states asserting authority over NIL regulation against federal settlement terms.
Nebraska is not alone in this fight — Oregon, Georgia, Virginia, and Tennessee have all taken steps to challenge NCAA authority over NIL — but Nebraska’s combination of strong state statutory protections and an active test case makes it the jurisdiction to watch in 2026.
What Does Nebraska’s NIL Law Actually Say?
Nebraska’s NIL statute, the Nebraska Student-Athlete Name, Image, or Likeness Rights Act (originally the Nebraska Fair Pay to Play Act), was signed into law on July 24, 2020, and has been amended since. The current version, as amended by LB 1137, includes the following key provisions:
Nebraska college athletes at both public and private institutions have the right to earn compensation for the use of their name, image, and likeness (Neb. Rev. Stat. § 48-3603). The statute prohibits postsecondary institutions and collegiate athletic associations from penalizing athletes for exercising these rights. Athletes can hire licensed agents to represent their NIL interests under § 48-3604, and agents must be registered with the state to represent Nebraska athletes.
The statute imposes several important limitations. Compensation must be for services actually performed (§ 48-3603(5)). Athletes cannot enter into NIL contracts that extend beyond their participation in the athletic program, involve the sale of awards received for athletic participation, or provide compensation for work not performed. Institutions may prohibit athletes from entering contracts that are “reasonably deemed to be inconsistent with the educational mission” of the institution (§ 48-3603(6)). Athletes cannot enter NIL deals that conflict with existing team contracts — but the institution must disclose the conflicting team contract to the athlete (§ 48-3605).
The 2024 amendments through LB 1393 further clarified that Nebraska institutions can assist athletes with NIL activities by providing legal support, access to department resources, team facilities, equipment, social media support, and photographers. Critically, LB 1393 also clarified that NIL compensation from an institution — as now permitted under the House settlement — does not inherently make the athlete an employee of the institution. This provision directly addresses one of the unresolved legal questions in college athletics: whether revenue sharing triggers an employment relationship with tax, benefits, and collective bargaining implications.
How Does Revenue Sharing Interact with Third-Party NIL Deals?
This is the question that is reshaping the economics of college athletics in real time. Under the House settlement, institutional revenue sharing and third-party NIL deals are treated as separate categories — but they interact in important ways.
Revenue-sharing payments come directly from the institution and count against the school’s $20.5 million annual cap. Third-party NIL deals — endorsements, social media sponsorships, autograph signings, camp appearances — are separate and do not count against the school’s cap. However, third-party deals over $600 must be submitted to the CSC for approval, and the CSC can reject deals it determines exceed fair market value.
The practical effect is that third-party NIL has become the primary mechanism for schools and collectives to supplement revenue sharing beyond the cap. Athletic directors across the country have acknowledged that “redirecting” revenue through third-party NIL structures is a common workaround to the revenue-sharing ceiling. This is exactly what the Nebraska-Playfly dispute involves — and exactly what the CSC is trying to police.
For Nebraska athletes, this means that the structure and documentation of third-party NIL deals is more important than ever. A deal that clearly ties compensation to specific promotional activities — social media posts, autograph sessions, commercial appearances, camp instruction — is far more likely to survive CSC scrutiny than a deal that pays an athlete with minimal performance obligations. Athletes and their representatives need to ensure that every NIL contract includes clear deliverables, defined timelines, and compensation tied to identifiable services.
What About Nebraska High School Athletes and NIL?
The Nebraska Fair Pay to Play Act does not address NIL at the high school level. This leaves regulation to the Nebraska School Activities Association (NSAA), which governs public high school athletics in the state.
The NSAA Board of Directors voted in December 2021 to allow high school athletes to profit from their name, image, and likeness, subject to specific conditions. Under NSAA Bylaw 3.7.1.c, students may engage in NIL activities on an individual basis, but those activities cannot suggest the endorsement or sponsorship of the student’s NSAA member school. Athletes cannot use images of themselves in school uniforms, or clothing or gear depicting the school’s name or logo, in NIL activities. Violations can result in a determination of ineligibility.
For high school athletes and their families, this creates a narrow but real window for NIL activity. Social media endorsements, personal appearances, and product promotions are permitted as long as they are clearly individual and not school-affiliated. Athletes with significant social media followings or athletic reputations can begin building their NIL portfolio before college — but the line between permissible individual activity and impermissible school association requires careful navigation.
What Are the Tax Implications of NIL Income in Nebraska?
NIL income is taxable. Period. Whether the income comes from a third-party endorsement deal, an institutional revenue-sharing payment, or back damages from the House settlement, it is treated as ordinary income for federal tax purposes. Nebraska athletes must also pay Nebraska state income tax on NIL earnings.
Athletes receiving both revenue-sharing payments and third-party NIL income should anticipate a significant tax obligation. Nebraska’s top individual income tax rate was reduced under recent legislative changes, but athletes earning substantial NIL income — particularly those receiving both a full revenue-sharing allocation and multiple third- party deals — can face combined federal and state tax rates exceeding 30%.
Quarterly estimated tax payments are likely required for athletes whose NIL income exceeds their withholding. Failure to make estimated payments can result in penalties and interest from both the IRS and the Nebraska Department of Revenue. Athletes should work with a tax professional familiar with NIL income as early in the tax year as possible — not in April when the return is due.
The House settlement back-damages payments, when they are eventually distributed (currently delayed by appeals), will also be taxable income in the year received. Athletes who competed between 2016 and 2025 and are eligible for back damages should plan for the tax impact now.
What Should Nebraska Athletes, Families, and Businesses Do Right Now?
The NIL landscape in 2026 is more complex — and more valuable — than at any point since the rules changed. Here is what the different stakeholders should be doing.
College Athletes
Understand your revenue-sharing allocation and how it interacts with your third-party NIL deals. Ensure every NIL contract includes clear performance obligations and defined deliverables — vague contracts are the ones the CSC is rejecting. Disclose all NIL deals over $600 through NIL Go. Engage a licensed agent and an attorney who understands both Nebraska’s NIL statute and the House settlement terms. Do not sign contracts with perpetuity clauses, broad exclusivity provisions, or terms that extend beyond your college career without legal review.
High School Athletes
You can earn NIL income under NSAA rules, but keep it individual and school-neutral. No school uniforms, logos, or team affiliations in NIL content. Build your brand and social media presence now — it creates leverage for college NIL negotiations later. Document everything for tax purposes.
Families
Get involved early. NIL contracts are legal agreements with real consequences. A parent should not be the primary negotiator — hire a licensed agent and an attorney.
Understand the tax implications before, not after, the money arrives. If your child is a minor, additional protections and considerations apply under Nebraska law.
Businesses and Sponsors
If you are a Nebraska business considering an NIL sponsorship with a college athlete, your deal will be submitted to the CSC for review if it exceeds $600. Structure the contract around genuine marketing services — social media posts, appearance events, product endorsements — with clear deliverables and fair market compensation. Deals that look like gifts or booster payments will be flagged. Work with an attorney who can ensure the contract satisfies both Nebraska law and CSC requirements.
NIL Collectives
The pre-July 2025 model of pooling booster money and distributing it to athletes with minimal performance obligations is under direct attack from the CSC. Collectives that survive in 2026 will be the ones that operate like legitimate marketing businesses — matching athletes to sponsors, structuring deals with real deliverables, and documenting the commercial value of every transaction.
Frequently Asked Questions
Can Nebraska schools pay athletes directly now?
Yes. Under the House settlement, schools that opted into revenue sharing can distribute up to $20.5 million directly to athletes for the 2025-2026 academic year. The University of Nebraska and all Big Ten schools have committed to fully funding revenue sharing at the maximum level. These payments are separate from third-party NIL deals.
Do Nebraska athletes still need agents and lawyers for NIL deals?
More than ever. Revenue sharing creates a baseline, but third-party NIL deals remain the primary way athletes earn above the revenue-sharing cap. Every third-party deal over $600 is now subject to CSC review, and deals that lack clear deliverables are being rejected. A licensed agent and an attorney can structure deals that maximize value while surviving scrutiny. Under Nebraska law (Neb. Rev. Stat. § 48-3604), agents representing Nebraska athletes must be registered with the state.
Are Nebraska high school athletes allowed to earn NIL income?
Yes, with restrictions. The NSAA permits high school athletes to engage in NIL activities on an individual basis, but those activities cannot reference, suggest, or imply endorsement by the athlete’s school. Athletes cannot use school uniforms, logos, or team imagery in NIL content. Violations can result in loss of eligibility.
What happens if the CSC rejects my NIL deal?
Under the House settlement, athletes have the right to challenge a CSC rejection through arbitration. The arbitration process has a 45-day timeline. If the arbitration ruling goes against the athlete, it may be possible to seek judicial review — and in Nebraska, the state NIL statute may provide an independent legal basis to challenge enforcement actions by collegiate athletic associations. This is the exact issue being tested in the current Nebraska-Playfly arbitration.
Is NIL income taxable in Nebraska?
Yes. All NIL income — whether from third-party deals, institutional revenue sharing, or House settlement back damages — is treated as taxable ordinary income for both federal and Nebraska state tax purposes. Athletes with significant NIL earnings should make quarterly estimated tax payments to avoid penalties.
If you are a Nebraska athlete, family, business, or collective navigating NIL in 2026, Horgan Law LLC can help. We are a licensed athlete agent and NIL law firm in Omaha representing athletes across Nebraska. Contact us at 402-965-0652 or visit horganlawfirm.com/contact-us to discuss your situation.
Contact Horgan Law LLC
Horgan Law LLC handles complex civil litigation across Nebraska, including disputes involving the death of a party, estate claims, probate litigation, and related matters. If you have questions about a pending lawsuit involving a deceased party, revivor requirements, or the interaction between civil litigation and probate administration, contact our office to discuss your situation.
This article is intended for general educational purposes and does not constitute legal advice. Every situation is different. Consult a licensed Nebraska attorney for guidance specific to your circumstances.
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