Nebraska has constructed one of the most aggressive NIL environments in the United States. The state pioneered NIL legislation with the Nebraska Fair Pay to Play Act (LB 962) in 2020, and has since transitioned into “institutionalized professionalism” through LB 370, authorizing direct university compensation to athletes. With UNL’s “all-in” revenue-sharing model, UNO’s strategic opt-out, and the NSAA’s regulated high school framework, Nebraska presents a unique dual-track NIL landscape. Here’s the complete guide to Nebraska NIL laws.
Nebraska’s NIL Evolution
Nebraska’s NIL framework is defined by pioneering legislation, institutional divergence, and a cultural imperative to restore football prominence.
LB 962 — Nebraska Fair Pay to Play Act (2020)
- Passed before the national NIL floodgates opened
- Initial enabling legislation for Nebraska NIL
- Allowed athletes to retain professional representation
- Prohibited institutions from penalizing athletes for NIL earnings
LB 370 — “Sovereign Shield” Law (2025)
Introduced by Senator Megan Hunt and enacted in the 2025 session, LB 370 acts as the state’s primary defense against NCAA interference in the post-House era.
- Direct Compensation Authorization: Permits postsecondary institutions to directly compensate student-athletes for their NIL
- Immunization from Penalties: Prohibits NCAA or Big Ten from investigating, penalizing, or suspending athletes or institutions for state-authorized NIL activities
- Employment Status Firewall: NIL compensation does NOT classify student-athletes as employees (shields from workers’ comp, unionization, pension obligations)
House v. NCAA Settlement (2025)
- Direct revenue sharing authorized (~$20.5 million annual cap)
- Cap escalates annually
- UNL committed to full participation; UNO opted out for 2025-26
Why Nebraska Matters
- Pioneer state — passed NIL legislation before national adoption
- “Sovereign Shield” nullifies NCAA enforcement within state borders
- Dual-track system: UNL (all-in) vs. UNO (opt-out) creates divergent economic realities
- 1890 Initiative represents sophisticated collective-to-agency transition model
- Federal advocacy: Senator Ricketts pushing F-1 visa fix for international athletes
Nebraska College NIL Rules
Nebraska college athletes benefit from direct institutional compensation under LB 370 and the House v. NCAA settlement framework.
What the Law Guarantees
- Athletes may earn NIL compensation without losing eligibility
- Universities may directly compensate athletes (revenue sharing)
- Athletes may hire agents and attorneys
- NIL earnings do not affect scholarships
- State law immunizes athletes and institutions from NCAA penalties
University of Nebraska-Lincoln (UNL) — “All-In” Model
Under Athletic Director Troy Dannen, UNL has adopted a strategy of maximum capitalization.
- Revenue Sharing: $20 million budgeted placeholder; views $20.5M cap as “floor” not ceiling
- 1890 Initiative: Official collective transitioning from primary funding engine to “top-up” money and third-party deal facilitation
- Funding Strategy: Increased ticket prices, alcohol sales at Memorial Stadium
- Philosophy: Spend to cap immediately to secure top talent in Big Ten/SEC competition
University of Nebraska Omaha (UNO) — Strategic Opt-Out
UNO announced it would NOT opt in to revenue sharing for 2025-2026.
- Rationale: Preserve broad-based sport portfolio; revenue sharing would necessitate cutting non-revenue sports
- Model: Traditional scholarship-plus-third-party-NIL approach
- Implication: Protects solvency but caps recruitment ceiling vs. revenue-sharing peers
International Student Restrictions (F-1 Visa)
- F-1 visas prohibit off-campus “active employment”
- “Active” NIL (commercials, autograph signings) = unauthorized employment
- Revenue sharing may be classified as “wages” — ISAs potentially excluded
- Senator Ricketts introduced federal legislation to create F-1 visa carve-out
Nebraska High School NIL Rules
Nebraska high school athletes can monetize their NIL under NSAA’s permissive but regulated framework.
Key Facts
- Governing Body: Nebraska School Activities Association (NSAA)
- Status: Permitted with strict restrictions
- Primary Reference: Bylaw 3.7.1 (The Amateur Rule)
What NSAA Allows
- Commercial endorsements and social media monetization
- Autograph signings and personal appearances
- Camps, clinics, and instructional services
- Product endorsements unaffiliated with school
Critical Restrictions
1) Intellectual Property (IP) Firewall
High school athletes may NOT use:
- School names, logos, or mascots
- Uniforms or jerseys
- Any school intellectual property in commercial endorsements
2) No Pay-for-Play
- Compensation cannot be contingent on athletic performance (specific stats)
- Compensation cannot be contingent on enrollment at a specific school
3) Prohibited Categories
- Alcohol and tobacco products
- Gambling and sports betting
- “Activities inconsistent with school values” (broadly interpreted)
Penalties
Violating amateurism rules results in ineligibility. Unlike minor suspensions in some states, Nebraska violations can render a student ineligible for competition for a significant duration, as determined by the Executive Director.
College vs. High School: Key Differences
| Factor | College (LB 370) | High School (NSAA) |
|---|---|---|
| NIL Status | Fully Legal + Direct Pay | Permitted (restricted) |
| Institutional Pay | Allowed ($20.5M cap) | Prohibited |
| Third-Party NIL | Unlimited | Allowed (unaffiliated) |
| School Logos/Uniforms | Allowed | Prohibited |
| Collectives | Integrated (1890 Initiative) | N/A |
| NCAA Immunity | Yes ("Sovereign Shield") | N/A |
| Pay-for-Play | Prohibited | Prohibited |
Key Distinction: College athletes at UNL receive direct institutional payments under LB 370’s “Sovereign Shield.” High school athletes must build NIL entirely separate from school branding under NSAA’s amateur framework.
What Nebraska Athletes Can Do
College Athletes
- Receive direct revenue sharing from institution ($20.5M cap at UNL)
- 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 (1890 Initiative)
- Use school logos and uniforms in NIL content
- Receive fan support through NIL platforms
High School Athletes
- Sign commercial endorsements (no school affiliation)
- Monetize social media
- Earn from autograph signings
- Conduct paid camps, clinics, and instructional services
- Build personal brand separate from school
- Prepare for college NIL opportunities
What Nebraska Athletes Cannot Do
College Athletes
- Accept pay-for-play (compensation contingent on athletic performance)
- Accept enrollment inducements (NIL conditioned on attending specific school)
- International students (F-1 visa): Cannot engage in “active” NIL while in U.S. — passive income may be permissible
High School Athletes
- Use school uniforms, logos, mascots, or names in NIL content
- Accept pay-for-play
- Accept NIL as recruiting inducement to transfer
- Endorse prohibited categories (alcohol, tobacco, gambling)
- Violation = significant ineligibility period
Both
- Must pay taxes on NIL income (Nebraska state income tax ~5.84% + federal + self-employment)
- Must maintain academic eligibility
- Must comply with governing body rules
Compliance Requirements
For College Athletes
Disclose all NIL contracts to school compliance office; Check for conflicts with existing school/conference sponsorships; Work with 1890 Initiative for professional representation; File taxes on all NIL income (expect 1099 for $600+); International students: Consult international student services before any NIL activity.
For High School Athletes
Maintain strict separation from school identity (IP Firewall); NEVER use school logos, uniforms, or mascots; NEVER accept pay-for-play or recruiting inducements; Avoid all prohibited categories; Review NSAA Bylaw 3.7.1 before any NIL agreement.
For Parents
Review all contracts before your athlete signs; Nebraska has state income tax — set aside 30-35% for taxes; For high school: Ensure strict “unaffiliated” compliance; Consider consulting an attorney for significant deals; Understand the difference between UNL (revenue sharing) and UNO (traditional model) if recruiting.
How Fans Support Nebraska Athletes
Nebraska fans — from Memorial Stadium to the volleyball arenas — can support athletes directly through NIL.
College Athletes
Fans can support athletes at: University of Nebraska-Lincoln (Big Ten); University of Nebraska Omaha; Creighton University (Big East); Nebraska-Kearney (D2). All sports, not just football and volleyball.
The 1890 Initiative
The official UNL collective, the 1890 Initiative, facilitates NIL opportunities. With revenue sharing now providing “base salary,” the collective focuses on “top-up” money for elite players and facilitating third-party commercial deals.
Consumer Impact
To fund revenue sharing, UNL has passed costs to consumers: Student season tickets priced at $180 for 2025 football season; Alcohol sales introduced at Memorial Stadium; Donor expectations shifting from “facilities” to “payroll.”
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.
Frequently Asked Questions
What is Nebraska’s “Sovereign Shield”?
LB 370 (2025) prohibits the NCAA or Big Ten from investigating, penalizing, or suspending athletes or institutions for NIL activities authorized by Nebraska state law. This effectively nullifies NCAA enforcement within state borders.
Can Nebraska high school athletes do NIL?
Yes, under NSAA’s permissive but regulated framework. Athletes cannot use school logos, uniforms, or mascots in NIL content. Violations result in significant ineligibility periods — more severe than some other states.
What is the 1890 Initiative?
The official NIL collective for University of Nebraska-Lincoln. Previously the primary funding engine for athlete payments, it is transitioning to a “top-up” and agency role now that the university handles direct revenue sharing.
Why did UNO opt out of revenue sharing?
Vice Chancellor Adrian Dowell cited the need to preserve UNO’s broad-based sport portfolio. Funding a $20.5M revenue share would have necessitated cutting non-revenue sports. UNO athletes remain in a traditional scholarship-plus-third-party-NIL model.
Do Nebraska athletes pay taxes on NIL income?
Yes. All NIL income is taxable. Nebraska has state income tax (top rate ~5.84%). Athletes also owe federal income tax and self-employment taxes. Combined, taxes can consume 30-40% of gross earnings. Unlike Arkansas, Nebraska has NOT enacted a specific NIL tax exemption.
What about international athletes on F-1 visas?
F-1 visas prohibit off-campus “active employment.” DHS interprets NIL deals (commercials, autograph signings) as “work,” putting international athletes at risk. Senator Pete Ricketts has introduced federal legislation to create a carve-out. Until passed, international athletes may be excluded from revenue-sharing pools.
What is Nebraska’s “Jock Tax”?
Nebraska enforces a tax on non-resident athletes. Visiting players (e.g., an Ohio State football player playing in Lincoln) owe Nebraska state income tax on the portion of their income “earned” during duty days in the state.
Nebraska: The Cornhusker Capitalist
Nebraska has constructed one of the most aggressive NIL environments in the nation. With pioneering legislation, the “Sovereign Shield” against NCAA enforcement, UNL’s all-in revenue-sharing strategy, and the 1890 Initiative’s sophisticated collective model, Nebraska treats the $20.5 million cap as a competitive baseline — not a ceiling.
The state’s dual-track system — UNL’s institutional professionalism vs. UNO’s strategic opt-out — creates divergent economic realities within the same university system. High school athletes benefit from NSAA’s permissive framework, though strict IP and amateurism rules apply.
For athletes ready to maximize NIL potential in the heartland, Nebraska sets the pace.
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