Texas has created one of the most robust NIL environments in the country. With more college football talent than any other state, powerhouse programs like Texas and Texas A&M, and aggressive legislative action through 2025, Texas NIL laws shape the national landscape. Here’s the complete guide to Texas NIL laws.
Texas’s NIL Leadership
Texas has aggressively carved out a national NIL leadership position through three major legislative milestones.
Senate Bill 1385 (2021) — The Foundation:
• Effective: September 1, 2021
• Established foundational NIL rights for college athletes
• Protected scholarships from NIL earnings
• Mandatory financial literacy workshops
House Bill 2804 (2023) — Institutional Empowerment:
• Schools can now assist athletes with NIL opportunities
• Legal safe harbor protecting schools from NCAA sanctions
• Athletes can use university facilities and trademarks (with compensation)
• NIL contract terms are confidential under Texas law
House Bill 126 (2025) — Direct Compensation:
• Effective: June 5, 2025 (immediate)
• Direct institutional payments to athletes authorized
• ~$20.5 million annual revenue sharing cap
• 17-year-old high school seniors can sign with colleges
• Student-athletes explicitly NOT classified as employees
Why Texas Matters:
Texas produces more college football talent than any other state. With SEC programs (Texas, Texas A&M), Big 12 powerhouses (TCU, Baylor, Houston, Texas Tech), and deep Group of Five programs, Texas NIL rules affect thousands of elite athletes and shape the national conversation.
Texas College NIL Rules
Texas college athletes have among the strongest NIL protections in the country under state law.
What the Law Guarantees:
• Athletes can earn compensation from NIL without losing eligibility
• Athletes can hire agents and legal representation
• Schools cannot prevent athletes from earning NIL income
• NIL earnings cannot reduce or revoke scholarships
• Schools can directly pay athletes for NIL services (2025)
• Legal safe harbor protects schools from NCAA sanctions
Institutional Assistance (HB 2804):
Texas schools can now help athletes find NIL opportunities, but with guardrails:
• Schools can identify and assist with NIL opportunities
• Schools cannot act as athlete agents
• Schools cannot receive compensation for NIL assistance
• Schools cannot influence athlete’s choice of representation
• Athletes can use university facilities and trademarks (market rate compensation)
Restricted Categories:
Texas law prohibits NIL deals in these categories:
• Alcohol and tobacco products (including e-cigarettes)
• Gambling and sports betting
• Adult-oriented businesses
• Firearms (only those athlete can legally purchase)
• Controlled substances and performance-enhancing drugs
What Athletes Must Do:
• Promptly disclose NIL contracts to their institution
• Attend mandatory financial literacy workshops (5+ hours, first and third year)
• Resolve conflicts with school sponsorships within 10 days of notice
• Report deals $600+ through NIL Go clearinghouse within 5 business days
• Ensure NIL activities don’t interfere with team commitments
School-Specific Requirements:
Texas schools have varying compliance structures:
• Texas (UT): SEC compliance and collective coordination
• Texas A&M: SEC compliance and NIL infrastructure
• TCU, Baylor, Houston, Texas Tech: Big 12 compliance
• SMU: ACC compliance structure
• UTSA, North Texas, Rice, UTEP: Group of Five programs
Athletes should check with their school’s compliance office for specific requirements.
Texas High School NIL Rules
Texas high school athletes have limited NIL rights through the University Interscholastic League (UIL). Texas maintains stricter high school rules than many other states.
Key Facts:
• Governing Body: University Interscholastic League (UIL)
• Status: Limited (17+ seniors can sign with colleges only)
• Framework: UIL Section 441 governs amateur status
UIL Section 441 — Amateur Athletic Status:
A student loses amateur status (and UIL eligibility) by:
• Receiving money for participating in a UIL sport
• Receiving money for commercial endorsements related to UIL sports
• Accepting money from booster club funds for non-school purposes
The 17-Year-Old Provision (HB 126):
HB 126 created a narrow exception for elite recruits:
• High school seniors aged 17+ can sign NIL agreements with colleges
• Payment is deferred until enrolled and participating in college athletics
• Athletes 16 and younger cannot sign any NIL agreements
• Third-party NIL deals (brands, businesses) still prohibited until UIL eligibility exhausted
What UIL Prohibits:
• No NIL deals with third parties (businesses, brands, collectives)
• No use of school logos, uniforms, or facilities for NIL
• No payment for athletic performance
• No commercial endorsements related to UIL sports
College vs. High School: Key Differences
| Feature | College (HB 126) | High School (UIL) |
|---|---|---|
| Third-Party NIL Deals | Allowed | Prohibited |
| Direct Institutional Pay | Allowed ($20.5M cap) | Prohibited |
| School Logos/Uniforms | Allowed (market rate) | Prohibited |
| College NIL Signing (17+) | N/A | Allowed (deferred pay) |
| Disclosure | Mandatory | N/A (no deals allowed) |
| Pay-for-Play | Prohibited | Prohibited |
| Agent Representation | Allowed (registered) | Limited |
The Key Distinction:
Texas has one of the sharpest divides between college and high school NIL. College athletes have broad NIL rights with direct institutional pay. High school athletes are largely restricted—only 17+ seniors can sign with colleges (with deferred payment), and third-party NIL deals remain prohibited.
What Texas Athletes Can Do
College Athletes:
• Receive direct revenue sharing from institution
• Sign endorsement deals with brands
• Monetize social media accounts
• Earn from camps, clinics, and training
• Sell autographs and merchandise
• Make paid personal appearances
• Hire registered agents and attorneys
• Use school facilities and trademarks (market rate)
• Participate in group licensing deals
• Receive fan support through platforms like RallyFuel
High School Athletes (17+ Seniors Only):
• Sign NIL agreements with colleges before enrollment
• Lock in financial terms during recruitment
• Receive payment after enrollment (deferred)
High School Athletes Cannot:
• Sign deals with businesses, brands, or collectives
• Receive any payment while UIL-eligible
• Use school logos or uniforms commercially
• Monetize social media related to UIL sports
What Texas Athletes Cannot Do
College Athletes:
• Cannot accept pay-for-play (performance bonuses)
• Cannot promote alcohol, tobacco, or nicotine products
• Cannot promote gambling or sports betting
• Cannot promote adult-oriented businesses
• Cannot promote controlled substances
• Cannot hide NIL contracts from school (disclosure required)
• Cannot sign deals conflicting with school sponsorships
High School Athletes:
• Cannot sign third-party NIL deals while UIL-eligible
• Cannot receive any NIL payment while UIL-eligible
• Cannot use school identifiers commercially
• Cannot accept booster club money for non-school purposes
• Athletes 16 and younger cannot sign any NIL agreements
Both:
• Must pay taxes on NIL income
• Must maintain academic eligibility
• Must follow governing body rules (NCAA/UIL)
• Cannot accept pay-for-play arrangements
Compliance Requirements
For College Athletes:
• Promptly disclose all NIL contracts to your school
• Report deals $600+ through NIL Go clearinghouse within 5 business days
• Attend mandatory financial literacy workshops (5+ hours, first and third year)
• Resolve sponsorship conflicts within 10 days of school notice
• File taxes on all NIL income (expect 1099 for $600+)
• Use only registered athlete agents (Texas Athlete Agent Act)
• Follow collective guidelines if participating
For High School Athletes:
• Understand UIL Section 441 amateur status rules
• Only sign NIL agreements with colleges (if 17+)
• Do not sign any third-party NIL deals
• Wait until UIL eligibility is exhausted for payment
• Violations result in immediate loss of UIL eligibility
For Parents:
• Review all contracts before your athlete signs
• Understand tax obligations (all NIL income is taxable)
• Set aside money for taxes (25-30% recommended)
• Verify agent registration with Texas Secretary of State
• For high schoolers: Ensure compliance with UIL rules
• Consider consulting an attorney for significant deals
How Fans Support Texas Athletes
Texas has the most passionate college sports fans in the country—and now they can directly support athletes through NIL.
College Athletes:
Platforms like RallyFuel enable Texas fans to support athletes at:
• Texas (UT), Texas A&M – SEC
• TCU, Baylor, Houston, Texas Tech – Big 12
• SMU – ACC
• UTSA, North Texas, Rice – AAC/C-USA
• Texas State, UTEP – Sun Belt/C-USA
• Prairie View A&M, Texas Southern – SWAC
• All sports, not just football
How It Works:
1. Create an account on RallyFuel.com or the mobile app
2. Select your Texas 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. Texas 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:
Due to UIL restrictions, Texas high school athletes cannot receive fan support through NIL platforms. However, 17+ seniors can sign NIL agreements with colleges as part of their recruitment, with payment deferred until enrollment.
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
When did Texas legalize NIL?
Texas passed SB 1385 in 2021 (effective September 1, 2021), HB 2804 in 2023 (institutional empowerment), and HB 126 in 2025 (direct compensation). Texas now has one of the most comprehensive NIL frameworks in the country.
Can Texas high school athletes do NIL deals?
Limited. Texas high school athletes cannot sign third-party NIL deals. However, seniors aged 17+ can sign NIL agreements with colleges as part of recruitment—but payment is deferred until the athlete is enrolled and participating in college athletics.
Do Texas athletes pay taxes on NIL income?
Yes. All NIL income is taxable, including non-cash benefits. Athletes earning over $600 from a source should expect a Form 1099. Texas has no state income tax, but federal taxes apply.
How can fans support Texas college athletes?
Fans can support Texas college athletes directly through platforms like RallyFuel. When you purchase Fan Fuel, you’re purchasing Conditional NIL Engagement Rights (CNERs). If conditions are met, the athlete receives an NIL Agreement. If conditions aren’t met, you receive an automatic refund.
What is Texas’s revenue sharing model?
Under HB 126 (2025), Texas colleges can directly pay athletes for NIL services up to approximately $20.5 million annually per institution. This allows schools to move beyond collectives and manage athlete compensation through institutional budgets.
What is the Texas Athlete Agent Act?
Texas law requires all athlete agents to register with the Secretary of State. Agents must post a $50,000 surety bond (or $100,000 if providing financial services). Contracts negotiated by unregistered agents are legally void, with penalties up to $50,000 per violation.
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.
Texas: The Biggest Stage in College Sports
With more football talent than any other state, aggressive legislative action, and direct revenue sharing, Texas has created one of the most robust NIL environments in the country. From Austin to College Station to Fort Worth, Texas athletes have opportunities that continue to expand.
For college athletes ready to maximize their NIL potential, RallyFuel provides fan-powered support with conditional protection. Explore verified Texas athletes and start fueling today.
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