Utah NIL Laws: Rules for College and High School Athletes

Utah’s NIL Evolution

Utah’s NIL landscape is defined by aggressive state legislation creating a “sovereign shield,” unprecedented private equity financing, and three divergent institutional strategies at Utah, BYU, and Utah State.

Utah has emerged as a national laboratory for NIL innovation. House Bill 449 (2025) creates a comprehensive “sovereign shield” that prohibits NCAA enforcement and authorizes direct institutional compensation. The University of Utah made history with the first-ever private equity partnership in college athletics (Otro Capital, ~$500M). BYU leverages debt-free operations and Big 12 media rights. Utah State pioneered the explicit “recruitment and retention fee” for mid-majors. High school athletes face UHSAA’s strict affiliation bans. Here’s the complete guide to Utah NIL laws.

House Bill 449 (2025) — “Sovereign Shield”:

• Sponsored by Rep. Jordan D. Teuscher and Sen. Ann Millner
• Prohibits NCAA from investigating, penalizing, or sanctioning Utah institutions for NIL activities
• Immunizes schools from NCAA infractions related to “pay-for-play” if categorized as NIL/revenue sharing
• Authorizes direct institutional compensation to athletes for NIL
• Legalizes “in-house” collective model—porous distinction between athletic department and collective
• Protects mid-major schools (USU, Weber State, Utah Tech) that lack resources to fight NCAA

House Bill 202 (2024) — GRAMA Privacy Exemption:

• Classifies student-athlete NIL agreements as “private records”
• Third District Court upheld exemption against public records challenges
• Prevents market transparency—no clear “market rate” for positions
• Obscures donor influence and Title IX disparities from scrutiny

House v. NCAA Settlement (2025):

• Direct revenue sharing authorized (~$20.5 million annual cap)
• Roster limits replace scholarship limits (Football: 105 all scholarshipped; Basketball: 15)
• Title IX ambiguity: Utah proceeding with “market value” approach (football/basketball heavy)

High School Status — UHSAA Restrictive Framework:

• NIL permitted with significant guardrails
• Strict affiliation ban: No school logos, uniforms, or facilities
• Collective interaction with schools severed (unlike college integration)
• “Undue Influence” bylaws prevent NIL-based recruiting

Why Utah Matters:

The University of Utah’s Otro Capital partnership is the FIRST private equity deal in college athletics history (~$500M). HB 449 provides the most comprehensive “sovereign shield” protecting all tiers of Utah schools. Utah State’s “recruitment and retention fee” is the most explicit consumer tax for athlete compensation at the mid-major level. The GRAMA privacy exemption prevents contract disclosure, unique among states.

Utah College NIL Rules

Utah college athletes benefit from HB 449’s “sovereign shield” which prohibits NCAA enforcement and authorizes direct institutional compensation through innovative financing models.

What HB 449 Guarantees:

• NCAA cannot investigate, penalize, or sanction Utah institutions for NIL
• Direct institutional compensation authorized
• “In-house” collective model legalized—university employees can facilitate deals
• NIL contract details protected as private records (GRAMA exemption)

University of Utah — Private Equity Model:

• HISTORIC: First private equity deal in college athletics (December 2025)
• Otro Capital (New York PE firm) partnership creates Utah Brands & Entertainment LLC
• ~$500 million capital infusion in exchange for minority stake and revenue percentage
• University retains majority ownership and control of “core” athletic decisions
• LLC manages media rights, sponsorships, ticketing, trademarks, licensing
• Exit strategy: University can buy back stake in 5-7 years
• AD Mark Harlan committed to full $20.5M revenue share

Crimson Collective — Asset-Based NIL:

• Ram 1500 truck leases for every scholarship football player
• “Oprah Effect”: Tangible assets create “sticky” retention (leaving = losing truck)
• Structured as legitimate NIL deals (athletes promote collective in exchange)
• “True NIL” (third-party deals) is UNCAPPED above $20.5M revenue share

BYU — Debt-Free Sovereignty Model:

• Debt-free operations: No facility bond debt to service
• Full Big 12 media rights revenue starting 2025 (tens of millions)
• Funds $20.5M revenue share through internal growth, not external leverage
• The Royal Blue collective: Corporate-compliant model aligned with Honor Code
• “Donor Dashboard” in mobile app gamifies small-dollar donations (August 2025)
• Cougar Club contribution levels raised to prepare for revenue-sharing era

Utah State — “Recruitment and Retention Fee”:

• Mid-major facing existential strain from revenue gap
• June 2025: Implemented explicit “recruitment and retention fee” on all tickets
• Fee explicitly designated for student-athlete compensation (not facilities or coaching)
• Most transparent consumer tax for athlete compensation at Group of 5 level
• HB 449 protects USU from NCAA enforcement without requiring legal resources

International Student-Athletes:

• F-1 visas prohibit off-campus “employment”
• University of Utah policy: ISAs “not permitted to be compensated for NIL activities”
• Revenue sharing MAY be classified as “passive income” (like royalties)—untested theory
• Creates two-tiered locker room: domestic students receive full compensation, ISAs only scholarships

Utah High School NIL Rules

Utah high school athletes can monetize their NIL under UHSAA’s restrictive framework, but face strict affiliation bans and severed collective interaction—a sharp contrast to the integrated college model.

Key Facts:

• Governing Body: Utah High School Activities Association (UHSAA)
• Status: Permitted with significant guardrails
• Framework: 2025-2026 Handbook

What UHSAA Allows:

• Commercial endorsements (no school affiliation)
• Autograph signings
• Social media monetization
• Personal brand building separate from school

UHSAA Affiliation Ban:

Athletes CANNOT use school uniforms, logos, or facilities in NIL content. Commercials cannot imply school endorsement. An athlete can be a spokesperson for a car dealership, but cannot wear their high school jersey or stand on the school field.

Collective Restriction — Critical Distinction:

Unlike college where collectives are integrated partners, high school collective interaction with schools is SEVERED. No coach, employee, or booster may use NIL promise to recruit a student. School employees cannot act as agents. A collective cannot coordinate with a coach to offer a “signing bonus” for a transfer—triggers “Undue Influence” bylaws (Article 1, Section 10) and renders student ineligible.

No Pay-for-Play:

Compensation cannot be contingent on athletic performance. “$100 per touchdown” = violation. “$100 to sign autographs” = permissible. Must be for “rights of publicity.”

Prohibited Categories:

Alcohol; Tobacco and vaping; Gambling; Weapons. These “vice industry” bans are universally enforced.

College vs. High School: Key Differences

Feature	College (HB 449)	High School (UHSAA)
NIL Status	Fully Legal + Sovereign Shield	Permitted (restricted)
Institutional Pay	Allowed ($20.5M cap)	Prohibited
Private Equity	Allowed (Utah/Otro Capital)	N/A
Third-Party NIL Deals	Unlimited	Allowed (unaffiliated)
Collective Integration	In-house" model legal	SEVERED from schools
School Logos/Uniforms	Allowed	Prohibited
Contract Privacy	Protected (GRAMA)	N/A
Pay-for-Play	Prohibited	Prohibited

The Key Distinction: Utah’s HB 449 creates the most comprehensive “sovereign shield” and legalizes “in-house” collective models at the college level. The University of Utah’s private equity deal is the FIRST in college athletics history. High school collective interaction is completely severed from schools—”Undue Influence” bylaws prevent NIL-based recruiting.

What Utah Athletes Can Do

College Athletes:

Receive direct revenue sharing from institution ($20.5M cap); Benefit from private equity-funded programs (Utah); Receive asset-based NIL (Crimson Collective truck leases); 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 integrated collective programs; Use school logos and uniforms in NIL content; Receive fan support through platforms like RallyFuel.

High School Athletes:

Sign commercial endorsements (no school affiliation); Monetize social media; Earn from autograph signings; Build personal brand separate from school; Prepare for college NIL opportunities.

What Utah Athletes Cannot Do

College Athletes:

Cannot accept pay-for-play (compensation contingent on performance); International students (F-1 visa): Cannot engage in NIL activities—University of Utah policy prohibits ISA compensation.

High School Athletes:

Cannot use school uniforms, logos, or facilities in NIL content; Cannot accept pay-for-play (“$100 per touchdown” = violation); Cannot accept NIL as recruiting inducement—triggers “Undue Influence” bylaws (ineligibility); Cannot coordinate with coaches/employees on NIL deals; Cannot endorse alcohol, tobacco, gambling, or weapons.

Both:

Must pay taxes on NIL income (Utah has state income tax + federal + self-employment); Must maintain academic eligibility.

Compliance Requirements

For College Athletes:

Disclose all NIL contracts to school compliance office; Contract details protected as private records (GRAMA exemption); Work with integrated collective programs (Crimson Collective, Royal Blue, etc.); Check for conflicts with existing school/conference sponsorships; File taxes on all NIL income (expect 1099 for $600+); International students: University of Utah policy PROHIBITS ISA NIL compensation—consult international office.

For High School Athletes:

NEVER use school logos, uniforms, or facilities in NIL content; NEVER accept pay-for-play (contingent on performance); NEVER accept NIL as recruiting inducement (“Undue Influence” = ineligibility); NEVER coordinate with coaches or school employees on deals; Avoid all prohibited categories (alcohol, tobacco, gambling, weapons).

For Parents:

For college: Review all contracts before your athlete signs; Understand contract privacy (GRAMA exemption protects details); Utah has state income tax—set aside 30-35% for taxes; For high school: Understand collective interaction is SEVERED from schools; Any NIL promise used for recruiting = “Undue Influence” = ineligibility; Ensure strict separation from school identity; Consider consulting an attorney for significant deals.

How Fans Support Utah Athletes

Utah has passionate college sports fans—from Rice-Eccles Stadium to LaVell Edwards Stadium—and now they can directly support athletes through NIL.

College Athletes:

Platforms like RallyFuel enable Utah fans to support athletes at:

• University of Utah – Big 12
• Brigham Young University – Big 12
• Utah State – Mountain West
• Weber State, Southern Utah, Utah Tech, Utah Valley – Big Sky / WAC
• All sports, not just football and basketball

How It Works:

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

Utah high school athletes may pursue NIL opportunities in their individual capacity under UHSAA rules. Athletes must maintain strict separation from school identity and cannot coordinate with coaches or school employees on deals.

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

What is Utah’s “Sovereign Shield”?

House Bill 449 (2025) creates a statutory prohibition against the NCAA investigating, penalizing, or sanctioning Utah institutions for NIL activities authorized by state law. This immunizes schools from “pay-for-play” infractions and legalizes the “in-house” collective model where the distinction between athletic department and collective becomes porous.

What is the University of Utah private equity deal?

In December 2025, Utah Board of Trustees approved the FIRST private equity partnership in college athletics history. Otro Capital (New York PE firm) acquires a minority stake in Utah Brands & Entertainment LLC for ~$500 million capital infusion. University retains majority ownership and “core” athletic decisions. LLC manages media rights, sponsorships, ticketing, licensing. Exit strategy allows buyback in 5-7 years.

Can Utah high school athletes do NIL?

Yes, but with significant restrictions. Athletes cannot use school logos, uniforms, or facilities. Collective interaction with schools is SEVERED (unlike college integration). Any NIL promise used for recruiting triggers “Undue Influence” bylaws = ineligibility. Pay-for-play prohibited.

What is the Crimson Collective truck program?

Utah’s Crimson Collective provides Ram 1500 truck leases to every scholarship football player. Structured as legitimate NIL deals (athletes promote collective in exchange). Creates “sticky” retention—leaving means losing the truck. “True NIL” (third-party deals) is UNCAPPED above the $20.5M institutional revenue share.

Do Utah athletes pay taxes on NIL income?

Yes. All NIL income is taxable. Utah has state income tax (4.65% flat rate). Athletes also owe federal income tax and self-employment taxes. Combined, taxes can consume 30-35% of gross earnings.

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.

Utah: The Beehive State Laboratory

Utah has become a national laboratory for NIL innovation. HB 449 creates the most comprehensive “sovereign shield” protecting all tiers of Utah schools. The University of Utah’s Otro Capital partnership is the FIRST private equity deal in college athletics history. BYU leverages debt-free operations and Big 12 media rights. Utah State pioneered the explicit “recruitment and retention fee.” High school collective interaction is completely severed from schools under UHSAA rules.

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