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High school athletes in Texas to benefit from major changes in NIL law on the heels of landmark House vs. NCAA settlement [REPORTS]

Modified Jun 07, 2025 16:57 GMT

The State of Texas has ushered in new changes in NIL, benefiting high school athletes. This new development will help high school athletes cash in money from their Name, Image and Likeness factor, a privilege that was only reserved for college athletes until now.

On the heels of the House v. NCAA settlement on Thursday, Gov. Greg Abbott signed HB 126, allowing colleges to directly pay their athletes. This judgment holds a significant element for high school athletes as well and states that athletes who are 17 and above are also eligible to sign NIL deals.

"Unless a prospective student athlete younger than 17 years of age is enrolled at an institution of higher education, an individual, corporate entity, or other organization, including an institution to which this section applies, may not enter into an arrangement relating to the athlete’s name, image, or likeness with the athlete or with an individual related to the athlete by consanguinity or affinity,” the law states.

This new ruling also provides some flexibility. If in the future, another court judgment challenges rules or laws around NIL compensation, the Texas law will still be in effect, without the need to pass another judgment.

The NCAA settlement shares revenue but slashes roster limits

With the latest NCAA v. House settlement, student-athletes can reap the benefits of the revenue-sharing model. Colleges are allowed to share as much as $20.5 million in revenue with their students directly, starting July 1. Alumni who graduated between 2016 to 2024 will also reap the benefits, with a financial package of $2.8 billion in store.

"This is a significant moment for college athletics that will provide unparalleled opportunities for student-athletes," ACC commissioner Jim Phillips said.

"We look forward to implementing this new system which offers much-needed transparency and structure to create a more sustainable model for the long-term future of college athletics."

However, the new money-sharing model comes with a caveat; The roster limits will be hugely impacted. Presently, the NCAA regulates 43 sponsored sports under its umbrella, but a staggering 5,000 athletes from across all the sports verticals will be trimmed down.

The House V. NCAA class-action lawsuit was filed in 2020, seeking restrictions on revenue-sharing models. One of the landmark rulings came in 2021 when the NCAA allowed athletes to sign NIL deals and cash in money with brand endorsements. The latest judgment has opened doors for the student-athletes to take part in the revenue-sharing model.

About the author

Insiya Johar is a third-year journalism student at Symbiosis Centre for Media and Communication. She is a passionate media student, a skilled storyteller, and enthusiastic about films and pop culture. She is committed to research and journalism.

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