Colorado NIL Laws: Rules for College and High School Athletes

Colorado’s NIL Evolution

Colorado’s legislative journey reflects a shift from athlete rights and transparency to institutional security and competitive advantage—when athlete rights conflict with institutional competitiveness, the state protects the institution’s secrets.

Colorado has emerged as a central laboratory for the NIL revolution, evolving from transparency mandates (SB 20-123) to institutional protectionism (HB 25-1041). The “Prime Effect” at CU Boulder has created unprecedented NIL valuations (Shedeur Sanders: $4.1M). House Bill 25-1041 creates a “sovereign shield” by exempting NIL contracts from Colorado Open Records Act. The Air Force Academy remains FEDERALLY PROHIBITED from NIL (like Army West Point). CHSAA enforces strict “separation” doctrine for high school athletes. Here’s the complete guide to Colorado NIL laws.

Senate Bill 20-123 (March 2020) — Transparency Era:

• Signed by Governor Jared Polis—Colorado as early NIL pioneer
• Athletes cannot be penalized for earning NIL compensation
• 72-hour disclosure requirement: Contracts must be disclosed to Athletic Director
• Private right of action: Athletes can sue universities that block NIL income
• Effective January 2023 (principles adopted earlier after NCAA interim policy)

House Bill 25-1041 (2025) — “Sovereign Shield”:

• Fundamental pivot from transparency to institutional opacity
• Amends Colorado Open Records Act (CORA) to shield NIL data
• Protected: Athlete names, financial terms, negotiation communications
• Athletic associations (NCAA) cannot penalize institutions for complying with state law
• Repeals prohibition on contracts conflicting with team contracts
• Governor Polis signing statement: Warned of “troubling trend” limiting transparency

House v. NCAA Settlement (2025):

• Direct revenue sharing authorized (~$20.5 million annual cap)
• AD Rick George committed to paying “full freight” of $20.5M
• Estimated allocation: 77% football, 11.2% men’s basketball, remainder to other sports

High School Status — CHSAA “Separation” Doctrine:

• Bylaw 2000.4: NIL permitted IF “not connected” to high school
• Strict prohibition: No school jerseys, logos, mascots, fields, team names
• Violation = immediate ineligibility, potential game forfeiture

Why Colorado Matters:

The “Prime Effect” (Deion Sanders at CU) proves a cult of personality can generate revenue to compete in the $20.5M cap era—but it’s fragile “Key Man Risk.” Air Force Academy highlights federal vs. state tension (cadets federally prohibited). HB 25-1041’s CORA exemption creates strategic opacity that rivals cannot pierce. First student athletic fee hike since 1994 shows consumers bearing the cost.

Colorado College NIL Rules

Colorado college athletes benefit from HB 25-1041’s “sovereign shield” which exempts NIL data from public records and blocks NCAA penalties for state-compliant activities.

What Colorado Law Guarantees:

• Athletes cannot be penalized for earning NIL compensation
• NCAA cannot penalize institutions for complying with state law
• NIL contracts exempt from Colorado Open Records Act (CORA)
• Private right of action: Athletes can sue if NIL blocked

CU Boulder — The “Prime Effect” Model:

• Deion Sanders arrival (December 2022) fundamentally altered economic valuation
• Shedeur Sanders: NIL valuation ~$4.1 million (led NCAA in deal volume/value)
• Travis Hunter: NIL valuation ~$1.8 million
• Recruiting pitch: “Come to Colorado, get on national TV, maximize your NIL”
• WARNING: “Key Man Risk”—if Sanders leaves, prominence may fade

5430 Alliance — Professional Collective Model:

• Named for Boulder elevation (5,430 feet); powered by Blueprint Sports
• Consolidated from previous Buffs4Life collective
• Tiered memberships: $15-$250/month grassroots; $17,543 “Prime Table” VIP
• Corporate integration (e.g., Taco Bell national campaigns)
• IRS tax challenge: Bifurcated “Memberships” (not deductible) vs. “Donations” (via BPS Foundation)

Funding the $20.5M Cap:

• AD Rick George committed to full $20.5M revenue sharing
• Student athletic fees raised for first time since 1994 (+$500,000 from student body)
• 7th home football game added to 2025 schedule
• Folsom Field concerts and corporate events expansion
• “Talent Fee” surcharges being implemented (Tennessee model)

Air Force Academy — FEDERAL PROHIBITION:

• Cadets are active-duty military and “employees of the federal government”
• Subject to Joint Ethics Regulation prohibiting public office for private gain
• ZERO TOLERANCE: Cadets cannot accept ANY NIL compensation
• “Cadet Act” introduced to permit NIL consistent with NCAA guidelines
• DOD regulations due July 1, 2026—creates “gap year” vulnerability
• Until then, Air Force relies on “old fashioned” development vs. market acquisition

Colorado Taxation — “Jock Tax”:

• Colorado flat 4.4% state income tax
• Visiting athletes may owe CO tax on “duty days” spent in state
• No specific guidance from CO Dept of Revenue on NIL nuances
• Potential audit risk for non-compliant athletes

Colorado High School NIL Rules

Colorado high school athletes can earn NIL income, but CHSAA Bylaw 2000.4 enforces a strict “separation” doctrine—NIL must be completely disconnected from high school identity.

Key Facts:

• Governing Body: Colorado High School Activities Association (CHSAA)
• Status: Permitted with strict separation requirements
• Framework: Bylaw 2000.4 “Connection” Test

CHSAA Bylaw 2000.4 — “Separation” Doctrine:

A student “may benefit from the use of their name, image and likeness (NIL) provided the NIL is not connected to their CHSAA high school, team, or activity program.” The “connection” test is strictly enforced.

Permissible vs. Prohibited:

PERMISSIBLE: Student filming commercial for local business wearing generic clothing, on public field, not mentioning school. PROHIBITED: Same student wearing high school jersey, filming on school field, referencing team name (“The Eagles”), using school mascot.

Penalties — Severe and Immediate:

• Violation of amateurism/eligibility = IMMEDIATE INELIGIBILITY
• If ineligible player participates = potential game/championship forfeiture
• Reinstatement requires application to Commissioner with strict review
• Second violation = potential PERMANENT eligibility revocation

Compliance Burden:

Parents and Athletic Directors must act as compliance officers, ensuring NIL deals do not cross the “connection to school” line. One mistake can forfeit a senior season.

College vs. High School: Key Differences

Feature	College (HB 25-1041)	High School (CHSAA)
NIL Status	Fully Legal + Sovereign Shield	Permitted (strict separation)
Institutional Pay	Allowed ($20.5M cap)	Prohibited
Public Records	EXEMPT from CORA	N/A
Third-Party NIL Deals	Unlimited	Allowed (no school connection)
School Logos/Uniforms	Allowed	Prohibited
Air Force Academy	FEDERALLY PROHIBITED	N/A
Violation Penalty	NCAA blocked by state law	Immediate ineligibility/forfeiture
Pay-for-Play	Prohibited	Prohibited

The Key Distinction: Colorado’s HB 25-1041 creates strategic opacity through CORA exemption—rivals cannot pierce contract data. The “Prime Effect” shows cult of personality can fund $20.5M cap but carries “Key Man Risk.” CHSAA enforces strict “separation” doctrine with immediate ineligibility for violations. Air Force Academy is federally prohibited like Army West Point.

What Colorado Athletes Can Do

College Athletes (except Air Force):

Receive direct revenue sharing from institution ($20.5M cap); Sign endorsement deals with brands; Monetize social media accounts; Earn from camps, clinics, and training; Sell autographs and merchandise; Make paid personal appearances; Hire agents and attorneys for NIL contracts; Participate in collective programs (5430 Alliance, etc.); Use school logos and uniforms in NIL content; Benefit from CORA exemption (contract privacy); Sue if NIL is blocked (private right of action); Receive fan support through platforms like RallyFuel.

Air Force Academy Cadets:

NOTHING. Cadets are federally prohibited from ALL NIL compensation. This is federal law (Joint Ethics Regulation) that state law cannot override. “Cadet Act” may provide relief by July 2026.

High School Athletes:

Sign commercial endorsements (NO school connection); Monetize social media (no school branding); Earn from autograph signings (off school grounds); Build personal brand completely separate from school identity.

What Colorado Athletes Cannot Do

College Athletes:

Air Force Academy: Cannot engage in ANY NIL (federal prohibition); International students (F-1 visa): Cannot engage in most active NIL.

High School Athletes:

Cannot wear school jersey in NIL content; Cannot film on school grounds/facilities; Cannot reference school team name or mascot; Cannot use school logos or branding; Cannot imply school endorsement; Violation = immediate ineligibility + potential forfeiture; Second violation = potential PERMANENT eligibility loss.

Both:

Must pay taxes on NIL income (Colorado flat 4.4% + federal + self-employment); Must maintain academic eligibility.

Compliance Requirements

For College Athletes:

Disclose NIL contracts to school compliance office within 72 hours (SB 20-123); Contract details protected from public records (HB 25-1041 CORA exemption); Work with collectives (5430 Alliance, etc.) for professional management; File taxes on all NIL income (expect 1099 for $600+); International students: Consult international office before any NIL; Air Force cadets: DO NOT engage in any NIL activity.

For High School Athletes:

Apply “Connection Test” to ALL NIL activity before signing; NEVER use school jersey, logo, field, mascot, or team name; NEVER film on school grounds; Parents/ADs must act as compliance officers; One mistake can forfeit senior season; Consult CHSAA if uncertain about any deal.

For Parents:

For college: Review all contracts; Understand CORA exemption protects contract privacy; Colorado flat 4.4% state tax—set aside 30-35% for total taxes; For high school: You are the compliance officer; Apply “connection test” to every NIL opportunity; One violation = immediate ineligibility, potential forfeiture; Two violations = potential permanent eligibility loss; Consider consulting an attorney before any significant deal.

How Fans Support Colorado Athletes

Colorado has passionate college sports fans—from Folsom Field to Canvas Stadium—and now they can directly support athletes through NIL.

College Athletes:

Platforms like RallyFuel enable Colorado fans to support athletes at:

• University of Colorado Boulder – Big 12
• Colorado State University – Mountain West
• Note: Air Force Academy athletes CANNOT participate in NIL (federal prohibition)
• Northern Colorado, Denver – Big Sky / Summit League
• All sports, not just football and basketball

How It Works:

1. Create an account on RallyFuel.com or the mobile app
2. Select your Colorado school affiliation
3. Browse verified athletes currently on your program’s roster
4. Fuel athletes you want to support
5. Track your support through your fan dashboard

How It Works: When you purchase Fan Fuel, you’re purchasing Conditional NIL Engagement Rights (CNERs). If conditions are met, RallyFuel or its affiliate offers an NIL Agreement to the athlete. If conditions aren’t met—for example, if an athlete transfers—you receive an automatic refund.

Conditional Protection: RallyFuel’s conditional model protects Fan Fuel with automatic refunds if athletes transfer or conditions aren’t met. Colorado fans can support players without financial risk.

Important: Fan support through RallyFuel is voluntary and conditional. Fuel purchases are not charitable donations. RallyFuel is not a guarantor that any athlete will accept an NIL Agreement. Purchasing Fan Fuel does not guarantee athletic performance, playing time, or any specific outcome.

High School Athletes:

Colorado high school athletes may pursue NIL opportunities provided they pass CHSAA’s strict “connection test”—complete separation from high school identity is required.

Learn More About the NIL Landscape

Name, Image, and Likeness plays an increasing role in college sports, and understanding how it works often requires more than individual articles or news updates.

RallyFuel is a platform focused on NIL-related topics across college athletics. It brings together information about athletes, NIL activity, and the broader structure behind modern college sports, helping readers explore the topic in more depth.

Visit RallyFuel

Frequently Asked Questions

Can Colorado high school athletes do NIL?

Yes, but ONLY if completely separated from high school identity. CHSAA Bylaw 2000.4 requires NIL to have NO “connection” to school, team, or activity program. Cannot wear jersey, film on school grounds, use mascot, or reference team name. Violation = immediate ineligibility. Second violation = potential permanent eligibility loss.

What is Colorado’s “Sovereign Shield”?

House Bill 25-1041 (2025) amends the Colorado Open Records Act to exempt NIL contracts from public disclosure. Athletic associations (NCAA) cannot penalize institutions for complying with state law. This creates strategic opacity—rival schools cannot access contract data for “negative recruiting.” Governor Polis warned this moves transparency in “wrong direction.”

Can Air Force Academy athletes do NIL?

Cadets are active-duty military subject to federal Joint Ethics Regulation prohibiting public office for private gain. Zero tolerance—cannot accept ANY NIL. The “Cadet Act” proposes relief, with DOD regulations due July 1, 2026. Until then, Air Force is frozen in pre-NIL era.

What is the “Prime Effect”?

The economic phenomenon at CU Boulder driven by Deion Sanders (“Coach Prime”). Shedeur Sanders: NIL valuation ~$4.1M (led NCAA). Travis Hunter: ~$1.8M. Recruiting pitch: National TV exposure = maximize NIL. WARNING: “Key Man Risk”—if Sanders leaves, prominence may fade while infrastructure costs remain elevated.

Do Colorado athletes pay taxes on NIL income?

Yes. Colorado has flat 4.4% state income tax plus federal income tax and self-employment taxes. Combined, taxes can consume 30-35% of gross earnings. “Jock Tax” may apply to visiting athletes for duty days spent in Colorado.

What happens if an athlete I supported transfers?

If an athlete transfers or selects a different school during the conditional period, you receive an automatic refund to your original payment method. No manual request is required.

Colorado: The Centennial State Laboratory

Colorado has evolved from transparency pioneer (SB 20-123) to institutional protectionist (HB 25-1041). The CORA exemption creates strategic opacity that rivals cannot pierce. The “Prime Effect” proves a cult of personality can fund the $20.5M cap era—but carries “Key Man Risk.” Air Force Academy remains federally prohibited from NIL. CHSAA enforces strict “separation” doctrine with immediate ineligibility for violations. Student fees rose for the first time since 1994.

For college athletes ready to maximize their NIL potential, RallyFuel provides fan-powered support with conditional protection. Explore verified Colorado athletes and start fueling today.