What the SEC’s Proposed NIL Fines Mean for Athletes

By Andrew R. Jacobs, Esq. | Founder & Managing Attorney, Jacobs Counsel LLC | Director, Sports, Entertainment & Gaming Initiatives, Seton Hall University School of Law | Super Lawyers Rising Star 2026

If a school, a collective and a sponsor all helped put your NIL deal together, find the name of the party that owes you the money. That is the first place I would look if a school asks to restructure a deal because of a new spending policy.

What the proposal could change

Yahoo Sports reported that the Southeastern Conference is considering fines for schools based on roster spending. Under the reported proposal, certain deals that route school revenue through a third party would count as institutional pay. As of November 13, the details still come from reporting, and the conference has yet to publish an adopted rule. Athletes should keep following the current College Sports Commission rules.

The House settlement’s audited 2026–27 benefits cap is $21,583,913 per participating school. The Big Ten separately announced a $27.5 million limit on school involvement in arranging third-party deals, with about $49 million in combined institutional involvement. Its rule leaves athletes free to pursue deals independently and keeps existing NIL Go requirements in place.

In August, Judge Claudia Wilken upheld the special master’s refusal to exempt multimedia-rights companies and brand sponsors as a group and sent the dispute over how the Commission investigates those deals back to him. For athletes, that makes the source of the money and each party’s role worth documenting.

📥 Free Download: NIL and Revenue Sharing Guide

Understand school payments, outside NIL deals and the contract questions that affect an athlete’s earnings.

What to read before you sign or amend a deal

• Payment. Who is obligated to pay, where does the money come from, and when is it due?
• Clearance and changes. Can a party delay or reduce payment, require a rewrite or end the deal if clearance or the funding arrangement changes?
• Repayment and rights. Would you owe money back? Can the sponsor keep using your name, image or likeness after a deal ends?

Keep the signed agreement and payment terms, including amendments, and follow the applicable NIL Go deadline. The general rule is to report third-party NIL deals worth $600 or more in the aggregate within five business days of signing or agreeing to payment terms. Some incoming athletes have different deadlines. Our guide to NIL Go and athlete contracts covers how to handle clearance in the agreement.

Sources

Yahoo Sports reporting on the SEC proposal · Joint House cap audit, September 1 · Big Ten rule · Wilken’s August 4 order · College Sports Commission reporting guidance

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