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

New York’s NIL Evolution

New York’s NIL landscape is defined by a “sovereign shield” protecting collegiate institutions, a fragmented high school “patchwork,” and the nation’s most aggressive income tax enforcement on athlete earnings.

New York operates as a progressive “sovereign shield” for its universities through S.5891-F, yet enforces one of the nation’s most aggressive “Jock Tax” regimes on athlete earnings. The high school landscape is a “patchwork” where NIL rights depend on whether you attend a NYSPHSAA public school (permissive), PSAL school in NYC (ambiguous), or Catholic/independent school (decentralized). Army West Point remains completely barred from NIL under federal law. Syracuse leads with the Orange United collective model. Here’s the complete guide to New York NIL laws.

S.5891-F (November 21, 2022) — “Sovereign Shield”:

• Signed by Governor Kathy Hochul; codified as Education Law § 6438-a
• Prohibits colleges from upholding rules that prevent athletes from earning NIL compensation
• Creates safe harbor: NCAA cannot declare NY athletes ineligible for NIL deals
• “Conflict clauses” allow institutional control over brand safety
• Schools can veto deals conflicting with team sponsors or causing reputational harm

Emerging Legislation (2025):

• S4760: Separates NIL compensation from financial aid calculations
• A8709: Proposes personal income tax exemption for certain athletes

House v. NCAA Settlement (2025):

• Direct revenue sharing authorized (~$20.5 million annual cap)
• Syracuse positioning to hit full $20.5M cap
• Mid-majors (Buffalo) focused on retention strategies

High School “Patchwork” — Three Jurisdictions:

• NYSPHSAA (Upstate public): PERMISSIVE—Rule 2.2(c) explicitly permits NIL
• PSAL (NYC public): AMBIGUOUS—”Amateur Status” rules conflict with modern NIL
• CHSAA/Independent: DECENTRALIZED—No statewide uniformity; varies by school

Why New York Matters:

The “Jock Tax” (Duty Days formula) is the nation’s most aggressive taxation of athlete income. Army West Point is the ONLY FBS program in NY completely barred from NIL (federal prohibition). The high school “patchwork” creates unequal rights based on geography and school type. Syracuse’s “Talent Fee” model is pioneering consumer-funded athlete compensation.

New York College NIL Rules

New York college athletes benefit from S.5891-F’s “sovereign shield” which nullifies NCAA bylaws that would punish NIL monetization, while retaining institutional control through “conflict clauses.”

What S.5891-F Guarantees:

• Colleges cannot uphold rules preventing athletes from earning NIL compensation
• NCAA eligibility sanctions for NIL deals effectively nullified in NY
• Athletes can hire agents and professional representation

“Conflict Clauses” — Institutional Control:

• Contractual Conflict: Schools can block deals conflicting with team sponsors (e.g., Nike vs. Adidas)
• Reputational Harm: Schools can veto deals “reasonably judged to cause financial loss or reputational damage”
• Time Commitment: Schools can prohibit NIL conflicting with classes or team activities
• Vice categories (gambling, alcohol, tobacco, adult entertainment) typically vetoed under reputational harm

Syracuse University — “Orange United” Model:

• Orange United: “Preferred” commercial collective managed by Student Athlete NIL (SANIL)
• Subscription model: “The Express” ($10.99/mo), “Empire State” ($49.99/mo)
• Athletes Who Care: 501(c)(3) non-profit collective for charitable engagements
• SU Football NIL: Sport-specific collective for high capital football needs
• “Talent Fee” surcharges on tickets fund $20.5M revenue sharing

Buffalo — Mid-Major Model:

• Nickel City Collective (April 2024): Blueprint Sports-powered, $10/month memberships
• Built in Buffalo: Internal exchange connecting athletes with local businesses
• Strategy: Retention focus (preventing transfer to Power 4) rather than recruitment

St. John’s — Donor-Driven Model:

• Billionaire alumnus Mike Repole driving basketball NIL success
• Storm Marketing: Subscription-based collective for general fan base
• Flat Top Fund: Basketball-specific collective (Rick Pitino effect)

Army West Point — FEDERAL PROHIBITION:

• Cadets are active-duty military subject to UCMJ and federal employment laws
• Federal employees prohibited from using public office for private gain (5 C.F.R. § 2635.702)
• ONLY Division I FBS program in NY completely barred from NIL
• Legislative remedies proposed (NDAA provisions) but not yet passed

The “Jock Tax” — New York Income Tax:

• NY taxes non-residents on income “derived from or connected with NY sources”
• “Duty Days” formula allocates income based on days spent in NY
• Active NIL (commercials, appearances in NY) taxed at NY rates
• Nation’s most aggressive enforcement—significant recruiting disadvantage

International Student-Athletes:

• F-1 visas prohibit off-campus “employment” including most active NIL
• Creates two-tiered locker room: American teammates earn, ISAs cannot
• Workarounds: Deals signed in home country; passive group licensing
• Violation = deportation and multi-year re-entry ban

New York High School NIL Rules

New York high school NIL is a “PATCHWORK” where rights depend on geographic location and school type. There is NO statewide uniformity.

NYSPHSAA (Upstate Public Schools) — PERMISSIVE:

• Rule 2.2(c) explicitly permits NIL (revised October 2021)
• Allowed: Endorsements, promotions, social media monetization, NFT sales
• “Affiliation Prohibition”: NO school logos, jerseys, mascots, or facilities
• Vice bans: Alcohol, tobacco, vaping, gambling, weapons, adult entertainment
• NIL cannot be used as recruitment inducement

PSAL (NYC Public Schools) — AMBIGUOUS:

• Eligibility rules state “competing for money” forfeits amateur status
• “Capitalizing on athletic fame by receiving gifts of monetary value” = violation
• Recent guidance allows NIL if no school/league affiliation—but no formal rule
• Pay-for-play construed strictly = ineligibility under Section 12
• NYC families may need specific guidance or hardship waivers

CHSAA (Catholic) & NYSAIS (Independent) — DECENTRALIZED:

• No statewide uniformity—decisions devolved to diocesan boards or individual schools
• Some prominent Catholic programs (basketball) embrace NIL as retention tool
• NYSAIS emphasizes anti-recruitment: No “inducement to sever connections”
• Consult individual school policies before any NIL activity

College vs. High School: Key Differences

Feature	College (S.5891-F)	High School (Varies)
NIL Status	Fully Legal + Sovereign Shield	PATCHWORK (varies by jurisdiction)
Institutional Pay	Allowed ($20.5M cap)	Prohibited
Third-Party NIL Deals	Allowed (subject to conflict clauses)	Varies by governing body
School Logos/Uniforms	Allowed (subject to sponsor conflicts)	Prohibited (all jurisdictions)
NYC PSAL	N/A	Ambiguous (amateur status conflict)
Upstate NYSPHSAA	N/A	Permissive (Rule 2.2(c))
Catholic/Independent	N/A	Decentralized (varies by school)
Pay-for-Play	Prohibited	Prohibited

The Key Distinction: New York’s high school NIL is a “patchwork” where rights depend on geography and school type. NYSPHSAA (upstate) is permissive with explicit rules. PSAL (NYC) has conflicting amateur status language with no formal NIL rule. Catholic and independent schools have no statewide uniformity. The “Jock Tax” makes NY among the most expensive states for athlete income.

What New York Athletes Can Do

College Athletes:

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, merchandise, and NFTs; Make paid personal appearances; Hire agents and attorneys for NIL contracts; Participate in collective-organized NIL programs; Use school logos (subject to sponsor conflicts); Receive fan support through platforms like RallyFuel.

High School Athletes (NYSPHSAA):

Sign commercial endorsements (no school affiliation); Monetize social media and sell NFTs; Make paid promotional appearances; Build personal brand separate from school.

High School Athletes (PSAL/CHSAA):

CONSULT GOVERNING BODY BEFORE ANY NIL ACTIVITY. PSAL has conflicting amateur status rules. CHSAA varies by diocese/school. Seek specific guidance or hardship waivers.

What New York Athletes Cannot Do

College Athletes:

Cannot sign deals conflicting with team sponsors (Nike vs. Adidas); Cannot sign deals school deems “reputational harm”; Cannot let NIL interfere with classes or team activities; Army West Point: CANNOT engage in ANY NIL (federal prohibition); International students (F-1 visa): Cannot engage in most active NIL.

High School Athletes:

Cannot use school uniforms, logos, mascots, or facilities; Cannot accept pay-for-play (performance-contingent); Cannot accept NIL as recruitment inducement; Cannot endorse vice categories (alcohol, tobacco, gambling, weapons, adult entertainment); PSAL athletes: Risk ineligibility under “amateur status” rules.

Both:

Must pay taxes on NIL income—NY “Jock Tax” is nation’s most aggressive; NY state income tax (4-10.9% graduated) + NYC local tax (up to 3.9%) + federal + self-employment; Active NIL performed in NY taxed at NY rates regardless of residence; Combined taxes can consume 40-50% of gross earnings.

Compliance Requirements

For College Athletes:

Disclose all NIL contracts to school compliance office; Submit deals for “conflict clause” review (sponsor conflicts, reputational harm); Work with approved collectives (Orange United, Nickel City, Storm Marketing, etc.); File NY state taxes on NIL income (“Jock Tax” applies to non-residents); International students: Consult international student services BEFORE any NIL activity.

For High School Athletes:

NYSPHSAA: Maintain strict separation from school identity; no logos, jerseys, facilities; PSAL: Seek specific guidance from league before any NIL activity; CHSAA/Independent: Consult individual school policy; ALL: Avoid all prohibited categories (vice industries); ALL: Do not accept NIL as recruitment inducement.

For Parents:

For college: Review all contracts for conflict clause compliance; Understand NY “Jock Tax”—set aside 40-50% for taxes if living in NYC; Consider A8709 tax exemption legislation (pending); For high school: Determine governing body (NYSPHSAA, PSAL, CHSAA, Independent); PSAL/CHSAA families: Seek specific guidance before any NIL; Consider consulting an attorney for significant deals.

How Fans Support New York Athletes

New York has passionate college sports fans—from the Carrier Dome to MSG—and now they can directly support athletes through NIL.

College Athletes:

Platforms like RallyFuel enable New York fans to support athletes at:

• Syracuse University – ACC
• St. John’s – Big East
• Buffalo – MAC
• Fordham, Hofstra, Iona, Marist, Siena, Manhattan – Atlantic 10 / CAA / MAAC
• Note: Army West Point athletes CANNOT participate in NIL (federal prohibition)
• All sports, not just football and basketball

How It Works:

1. Create an account on RallyFuel.com or the mobile app
2. Select your New York 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. New York 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:

New York high school athletes should consult their governing body (NYSPHSAA, PSAL, CHSAA, or independent school) before any NIL activity due to the “patchwork” regulatory environment.

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 New York high school athletes do NIL?

IT DEPENDS. NYSPHSAA (upstate public schools): YES—Rule 2.2(c) explicitly permits NIL with strict separation from school identity. PSAL (NYC public schools): AMBIGUOUS—”Amateur status” rules conflict with modern NIL; seek specific guidance. CHSAA (Catholic): VARIES by diocese/school. Independent schools: VARIES—consult individual policy. All jurisdictions prohibit school logos, pay-for-play, and recruitment inducements.

What is the New York “Jock Tax”?

New York taxes non-residents on income “derived from or connected with NY sources” using a “Duty Days” formula. Active NIL performed in NY (commercials, appearances, signings) is taxed at NY rates regardless of residence. NY state tax (4-10.9%) + NYC local tax (up to 3.9%) + federal + self-employment can consume 40-50% of earnings. This is the nation’s most aggressive athlete taxation.

Can Army West Point athletes do NIL?

Cadets are active-duty military subject to federal employment laws prohibiting use of public office for private gain (5 C.F.R. § 2635.702). Army West Point is the ONLY Division I FBS program in New York completely barred from NIL. Legislative remedies (NDAA provisions) have been proposed but not yet passed.

What are “conflict clauses”?

S.5891-F retains significant institutional control through “conflict clauses.” Schools can veto deals that: (1) Conflict with team sponsors (Nike athlete can’t wear Adidas during team activities); (2) Cause “reputational harm” (gambling, alcohol, controversial content); (3) Interfere with classes or team activities. This allows schools to protect multi-million dollar sponsorship revenue while permitting NIL.

Do New York athletes pay taxes on NIL income?

Yes—significantly. New York has state income tax (4-10.9% graduated) plus NYC local tax (up to 3.9% additional) if living in the five boroughs. Athletes also owe federal income tax and self-employment taxes. Combined, taxes can consume 40-50% of gross earnings for NYC residents. The “Jock Tax” applies to visiting athletes on income earned in NY.

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.

New York: The Empire State of Athletics

New York operates as a “sovereign shield” for colleges through S.5891-F while enforcing the nation’s most aggressive “Jock Tax.” The high school landscape is a “patchwork” where rights depend on jurisdiction—NYSPHSAA (permissive), PSAL (ambiguous), CHSAA (decentralized). Army West Point remains the only FBS program completely barred from NIL. Syracuse’s “Orange United” model pioneers consumer-funded athlete compensation.

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