New Mexico NIL Laws: Rules for College and High School Athletes

New Mexico was a pioneer state with Senate Bill 94, the Student Athlete Approval Act (2021), which included unique provisions, including a “Shoe Clause” that allowed athletes to wear their own shoes at reduced prices during team events. The law includes monetization of “athletic reputation” and food/housing/medical exemptions. However, New Mexico faces “moderate to significant pressure”— due to a lack of Power 4 revenue, New Mexico relies on increased student fees ($105 over two years) and state appropriations ($11.7 million) to fund revenue sharing. There is no sovereign immunity for civil rights claims. NMAA 6.18.3 permits NIL in a high school with strict segregation. Here’s a complete guide.

The Evolution of NIL in New Mexico

New Mexico was among the states that guaranteed student-athletes’ rights to no-instruction (NIL), providing a unique legislative protection that sets it apart from general NIL laws.

Senate Bill 94, “Student Athlete Approval Act” (2021):

• Passed by the 55th Legislature — Pioneer State Law
• Prohibits institutions from preventing NIL compensation by third parties
• Includes “sports reputation” – camps, coaching lessons, performances
• Agent representation is expressly permitted for NIL cases
• Conflict of interest protection: university representatives cannot represent athletes

The “Shoe Clause” is UNIQUE to New Mexico:

• Athletes may wear “shoes of their choice” during official team events
• Restrictions: Reflective fabric, light and health hazards are prohibited.
• Snags exclusive deals on college apparel (Nike, Adidas, Under Armour)
• Example: A UNM player with a Puma deal can wear Puma during games
• Maximizes the commercial independence of athletes compared to institutional contracts

Exceptions regarding food, housing, and medical care:

• Athletes cannot be punished for receiving food, housing, medical expenses or insurance
• A progressive security system that preceded recent NCAA changes
• Boosters could theoretically provide athletes with health insurance

Lack of Sovereign Immunity for Civil Rights — GREATER RISK:

• New Mexico Civil Rights Act: State ‘has no sovereign immunity’
• CONTRAST: Oregon Law HB 4119 Extends LIABILITY PROTECTION to Universities
• UNM/NMSU face higher legal risk for violating NIL policy
• Forces institutions to be rigorous, transparent, and fair

NMAA Regulation 6.18.3 (2023-2024):

• NMAA Board approves amendments to NIL for high schools
• “Pay to play” (competition for money) = loss of amateur status
• “Pay for fame” (commercial advertising) = ALLOWED
• No connection to school/team/NMAA in NIL events

Why New Mexico matters:

New Mexico is a “medium-large squeeze” — Due to the lack of Power 4 revenue, New Mexico faces a “double whammy”: the NCAA withholds $500,000 annually for 10 years in arrears PLUS pressure on revenue funding allocation. Unlike Tennessee’s 10% “talent fee” from ticket sales, New Mexico relies on student fees ($105 increase) and state appropriations ($11.7 million). The NMFOG lawsuits question transparency — state funds subsidizing athlete compensation are under scrutiny.

New Mexico College NIL Rules

New Mexico college athletes benefit from unique provisions of SB 94, including the “Shoe Clause” and food/housing/medical exemptions, but face the economic realities of mid-level funding.

What New Mexico law guarantees:

• NUL compensation from a third party cannot be prevented
• Monetization of “sports reputation” (camps, training, performances)
• “Shoe Clause”: Permitted agreements regarding personal footwear during team events
• Food, housing, medical expenses, insurance cannot be fined
• Agent representation is expressly permitted

“Middle Great Depression” – the realities of financing:

• House settlement: $20.5 million cap, but UNM lacks liquidity Power 4
• “Double whammy”: NCAA withholds $500,000 per year for 10 years as arrears
• Fernando Lovo: Revenue sharing is NOT “new revenue” — existing budgets need to be absorbed
• Tuition fee increase: $45/semester (2025-26) + $60 (2026-27) = $105 total
• State appropriation: increased from $8.5 million to $11.7 million (+$3.2 million)
• SB 268 ($2.5 million for student-athletes) FAILED

Prohibited UNM categories:

• Controlled substances (drugs/drug paraphernalia)
• Cannabis (prohibited, despite state legalization – federal law)
• Tobacco
• Sports betting/gambling
• Alcohol
• Adult entertainment/sexual behavior (“not recommended”)
• Profanity/tactless language (“not recommended”)

Battles for transparency — NMFOG lawsuits:

• New Mexico Open Government Foundation sues University of New Mexico and New Mexico Public Service Commission
• Charge: Violation of the Intellectual Property Rights Act (IPRA)
• Universities cite: FERPA (student records) and trade secret exceptions
• The UNM portal automatically rejects requests with the terms “NIL” or “income sharing”
• Державні кошти = вищі очікування щодо прозорості

Taxation in New Mexico:

Top marginal rate: 5.9% state income tax.
Athletes earning more than $400 from NIL must file Form C
“Athlete Tax”: Nonresidents may pay New Mexico state tax on NIL made in the state
. There is NO exemption from paying state tax on NIL (unlike Arkansas).

New Mexico High School NIL Rules

NMAA regulation 6.18.3 (effective 2023-2024) allows NIL in high school with a bifurcated system: “pay to play” is illegal, but “pay for fame” is permissible.

Key facts:

• Governing Body: New Mexico Activities Association (NMAA)
• Status: Allowed (Regulation 6.18.3, effective 2023-2024)
• “Pay for the game” (prize money) = loss of amateur status
• “Pay for fame” (advertising) = ALLOWED

“Separation of Church and State” — Bright Line:

Without affiliation:

Cannot imply affiliation with school/team/NMAA.

You may not wear school uniforms or use logos, mascots, or trademarks.

The athlete positions himself as an individual, not as a quarterback for La Cueva High School. Reflects the NYSPHSAA model in New York.

Prohibited:

Pay-to-play (compensation based on athletic performance). Recruiting incentives (compensation for enrolling at a specific school). School intellectual property in any commercial advertising. Activities “incompatible with school values.”

The fines are draconian:

Violation = loss of amateur status = disqualification. Disqualification up to 365 days (especially for false information). Team penalties: forfeiture of games if ineligible players are knowingly used. “Two-warning” policy: flagrant unsportsmanlike conduct = season suspension for second violation.

College vs. High School: Key Differences

Feature	College (SB 94)	High School (NMAA)
NIL Status	Fully Legal	Permitted (Bylaw 6.18.3)
Institutional Pay	Allowed ($20.5M cap)	Prohibited
Footwear Clause	YES - Personal shoe deals OK	N/A
School Logos/Uniforms	Allowed	Prohibited
Food/Shelter/Medical	Cannot be penalized	N/A
Sovereign Immunity	NO (civil rights exposure)	N/A
Pay-for-Play	Prohibited	Prohibited (forfeits status)
Cannabis NIL	Prohibited (federal law)	Prohibited

Key Difference: New Mexico’s “Shoe Clause” is UNIQUE — athletes can wear shoes at individual discounts during official team events. However, New Mexico does not have sovereign immunity from civil rights lawsuits (HIGHER legal risk than Oregon). “Medium Pressure” forces reliance on student fees and state appropriations rather than “talent fees” for ticket buyers. Cannabis is ZERO illegal, despite state legalization.

What New Mexico athletes can do

College athletes:

• Receive direct revenue sharing from the institution (limited to medium-large budgets)
• Sign advertising agreements with brands
• Monetize sports reputation (camps, coaching sessions, performances)
• Wear personal shoes at discounted prices during official team events (Shoe Clause)
• Receive food, housing, medical expenses, or insurance from third parties
• Monetize social media accounts
• Hire agents for NIL contracts
• Get fan support through platforms like RallyFuel.

High school athletes:

• Sign commercial advertising deals (pay for fame) – without connection to the school
• Monetize social media accounts (without school branding)
• Make money from autograph sessions
• Create a personal brand completely separate from the school identity.

What New Mexico athletes can’t do

College athletes:

Cannot recommend:

• controlled substances, cannabis (despite legalization in the state), tobacco, gambling, alcohol, adult entertainment
• You cannot use agents who also represent the university (protection against conflict of interest)

International students (F-1 visa):

• You cannot engage in active drug and alcohol use (NIL) within the United States.

High school athletes:

• You cannot use the school name, logo, mascot, trademarks, or uniform.
• No school/team/NMAA affiliation or endorsement may be implied
• Cannot accept payment for the game (depending on the results)
• No recruitment incentives may be accepted.
• You cannot participate in activities that are not in line with school values.

Both:

• Must pay NIL income taxes (maximum rate of 5.9% in New Mexico + federal tax + self-employment tax)
• Athletes earning more than $400 must apply for the Schedule C program
• NO state tax exemption for NIL
• Must maintain academic eligibility.

Compliance requirements

For college athletes:

• Disclose NIL (Nulled Insurance) contracts to the institution’s compliance department
• Avoid prohibited categories (cannabis, alcohol, gambling, tobacco, adult products)
• Check that agents DO NOT represent the university (conflict protection)

Shoe clause:

• personal footwear must not have reflective fabric, lights, or pose a health risk
• File a New Mexico tax return 5.9% + federal tax + self-employment

 Foreign students:

• Contact the International Relations Department — active NIL is prohibited.

For high school athletes:

• NEVER use the school name, logo, mascot, trademarks, or uniform
• NEVER hint at school/team/NMAA affiliation
• NEVER accept payment for playing (depending on the results)
• NEVER accept recruitment incentives
• Avoid activities that are incompatible with school values.
• Understand: Violation = disqualification for up to 365 days.

For parents:

• For college:
• View all contracts
• Understand the Footwear Clause (unique to New Mexico—personal footwear agreements are allowed)
• Cannabis is banned despite state legalization
• Lack of sovereign immunity = higher legal risk
• New Mexico relies on student fees/state appropriations (not wealthy donors).

For high school:

• Paying for fame is allowed, paying for the game is liable for status cancellation
• School segregation is absolute
• Draconian fines (up to 365 days of suspension)
• Consider consulting an attorney regarding significant transactions.

How fans support New Mexico athletes

New Mexico has ardent Lobo and Aggie fans, and now they can directly support the athletes through the NIL.

College athletes:

Platforms like RallyFuel allow New Mexico fans to support athletes at:

• University of New Mexico – Mountain West
• New Mexico State University – USA Conference
• All sports – football, basketball and others

Local groups:

The Lobo Alliance and the 505 Sports Venture Foundation support University of New Mexico athletes, albeit with significantly less capital than the Power 4 programs backed by billionaire donors.

How it works:

1. Create an account on RallyFuel.com or the mobile app
2. Select your school in New Mexico
3. View verified athletes currently in your program
4. Support the athletes you want to support
5. Track your support through the fan dashboard

How it works: When you purchase Fan Fuel, you are purchasing Conditional No-Entry Entitlements (CNER). If the conditions are met, RallyFuel or its affiliate offers the athlete a NIL deal. If the conditions are not met, for example if the athlete moves to another team, you receive an automatic refund.

Contingency Protection: RallyFuel’s contingent model protects Fan Fuel with automatic refunds if athletes move to another country or conditions are not met. New Mexico fans can support players without financial risk.

Important: Support for fans through RallyFuel is voluntary and conditional. Fuel purchases are not charitable donations. RallyFuel does not guarantee that any athlete will accept the No Donation Agreement. Fuel purchases for fans do not guarantee athletic performance, playing time, or any specific outcome.

High school athletes:

New Mexico high school athletes may utilize NIL opportunities under NMAA 6.18.3, provided they are completely separate from their school identity. “Pay for fame” is permitted, but “pay to play” forfeits amateur status.

Learn more about the NIL landscape

Name, image, and likeness play an increasingly important role in college sports, and understanding how it works often requires more than individual articles or news stories.

RallyFuel is a platform focused on topics related to modern college athletics (NIL). It brings together information about athletes, NIL activities, and the broader structure of modern college athletics, helping readers explore the topic in greater depth.

Visit RallyFuel

Frequently asked questions

Can New Mexico high school athletes pass the NIL?

Yes, according to NMAA Regulation 6.18.3 (effective 2023-2024). “Pay for fame” (commercial advertising) is ALLOWED. “Pay for play” (prize money or performance-based rewards) disqualifies athletes from amateur status. Athletes may not use school logos, uniforms, or imply affiliation. Fines are draconian — up to 365 days of suspension.

What is the “Shoe Clause” in New Mexico?

UNIQUE to New Mexico: SB 94 allows college athletes to wear “shoes of their choice” during official team events (games, practices). This violates the university’s exclusive apparel agreements. A UNM player with a personal Puma contract can wear Puma shoes even if UNM has a contract with Nike. Restrictions: No reflective fabric, lights, or health hazards.

Why does New Mexico rely on student tuition fees rather than a “talent fee”?

“Middle Great Depression”: The University of New Mexico and the University of New Mexico do not have the elastic demand that Tennessee or Texas can use to absorb additional ticket costs. Instead, the University of New Mexico relies on mandatory student fees ($105 increase in two years) and state appropriations ($11.7 million). American Fernando Lovo stated that revenue sharing is NOT “new revenue” – it must be cannibalized from existing budgets or generated from these state sources.

Can New Mexico athletes recommend cannabis despite legalization in the state?

NO. Although New Mexico has legalized recreational cannabis, university policies (and federal funding requirements) prohibit the endorsement of recreational cannabis use. Federal law creates a firewall—athletes cannot enter this local market. This illustrates the tension between state civil liberties and federal/institutional restrictions.

What is the NMFOG transparency lawsuit?

The New Mexico Foundation for Open Government is suing the University of New Mexico (UNM) and NMSU, alleging violations of the Independent Public Records Act (IPRA). Because public funds (tuition, state appropriations) now subsidize athlete compensation, NMFOG argues that NIL contracts should be public records. The universities cite FERPA and trade secrets. UNM’s portal automatically rejects requests with the terms “NIL” or “revenue sharing.”

What happens if an athlete I supported transfers?

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

New Mexico: A Mid-Large Pioneer State Challenge

New Mexico pioneered the unique provisions of SB 94: the “Shoe Clauses,” which allow for personal footwear purchases at team events, monetization of “athletic reputation,” and food/housing/medical exemptions. However, the state faces “moderate to significant compression”—due to a lack of Power 4 revenue, New Mexico relies on student tuition (an increase of $105) and state appropriations ($11.7 million) rather than “talent fees.” The lack of sovereign immunity from civil rights claims creates higher legal risk. NMAA 6.18.3 allows NIL in a high school with strict segregation. Cannabis is prohibited, despite state legalization.

For college athletes ready to maximize their potential without injury, RallyFuel offers fan-assisted support and conditional protection. Meet New Mexico’s proven athletes and start fueling today.