Colorado University Athletics

Parent/Guardian Rev Share Education

This resource page is meant to help educate CU student-athletes' parents and guardians about the impacts and changes to our operations due to the In re College NIL Litigation Settlement, specifically as it relates to the licensing agreement that your student-athlete has been offered. 

This information is for general informational purposes only and should not be construed as legal advice. This page will be updated frequently, so please check back often. If you would like to submit a general question or topic to be covered here, submit your idea to BuffsNIL@colorado.edu. 
 
The Settlement 
In re College Athlete NIL Litigation (a consolidation of House v. National Collegiate Athletic Association and Carter v. National Collegiate Athletic Association) and Hubbard v. National Collegiate Athletic Association is a $2.8 billion antitrust class action settlement to resolve litigation against the NCAA in the United States District Court for the Northern District of California. Although the settlement officially includes all three antitrust suits brought against the NCAA, it’s commonly referred to as just the “House Case.”

The Settlement enables athletic departments, like CU's, to share its revenue with student-athletes, via direct compensation, in exchange for a license to use the student-athlete's name, image and likeness ("NIL") rights. Under Settlement rules, a university may compensate student-athletes up to $20.5 million each academic year. These funds are separate from, and in addition to, the benefits CU already provides student-athletes like tuition, room & board, meals, health care services, etc. The $20.5 million number represents the average revenue generated by all institutions within the 'Power Five' conferences (plus the University of Notre Dame) - ACC, Big Ten, Big 12, Pac-12 and SEC. This number is set to increase by 4% each school year and will be recalibrated every three years. 

The Settlement does not dictate how an institution must disburse revenue sharing funds within the cap, so methodology and execution will vary between schools. CU Athletics has created a revenue-based, nondiscriminatory model to determine the budget for each sport program. Based on this budget, the coaching staff determines the amount of compensation each student-athlete receives. The $20.5 million is often called "the cap" so the money student-athletes receive via their institutional licensing agreement is "in cap" and any funds student-athletes earn on their own through individual NIL deals are referred to as "above cap."
  

The Licensing Agreement
CU is offering to purchase a limited exclusive license, for a set term, from the student-athlete for the ability to include their name, image and likeness throughout our course of business. Every scholarship CU student-athlete will be offered a licensing agreement, but the compensation amount and term length will vary. 

In exchange for compensation, the student-athlete will be involved in both passage usage of their NIL (photo included on the team poster) and active usage* of their NIL (making an appearance at a Buffalo Belles Luncheon).
What this licensing agreement is NOT: 
  • An employment contract
    • Compensation is not a salary
    • No payroll deductions or withholding
    • Not based on performance
  • An athletic scholarship or Financial Aid Agreement
    • Scholarship student-athletes will sign a Financial Aid Agreement (scholarship terms and conditions) separate from, and in addition to, a Licensing Agreement (revenue sharing terms and conditions). These two contracts exist independently from the other. As such, a student-athlete whose scholarship includes a monthly room & board stipend will receive those funds as a direct deposit from the CU Procurement Services Center on the last business day of the month during the academic year. The Office of Compliance Services, in partnership with the Office of Financial Aid, remain responsible for the Financial Aid Agreement process 
  • Compensation for:
    • Athletic performance/results
    • Academic performance/results
    • Participating in team requirements
    • Volunteer-based activities
    • “Participation Publicity” = student-athletes are still required to participate in internal athletic communications and information activities, like their name and head shot on a roster, their name and image on a video board related to in-venue statistics, team-sanctioned media activities and access
    • “Broadcast NIL”  = under the Settlement, conferences & universities still have the rights to:
      • Telecast, broadcast, or otherwise distribute or transmit, on a live, delayed, and/or archived basis, in any and all media now known or hereafter developed, any and all college games and competitive events, including clips and highlights
      • Produce, license, offer for sale, sell, market, or otherwise distribute or transmit on a live, delayed, and/or archived basis, broadcasts and other electronic or digital distributions of any such collegiate athletic games or competitive athletic events, and clips and highlights thereof, in any and all media now known or hereafter developed, including, but not limited to electronic or digital media
      • Use, employ, or otherwise transmit or publish student-athletes’ NIL for the purpose of promoting the telecasts, broadcasts, and other electronic or digital distributions of games and competitive events, including distribution of clips and highlights
Your student-athlete will be presented with a Licensing Agreement that includes a Term Sheet, Standard Terms & Conditions, and accompanying Exhibits, when applicable. This packet may also include Team Rules, written by the sport program, when applicable. This is a legally binding contract, so student-athletes are strongly encouraged to seek assistance and review from a parent/guardian, attorney or other competent representative. Student-athletes under the age of 18 must have a parent/guardian sign the agreement.


The Payment
The License Fee owed to student-athletes will be distributed according to the "License Fee Schedule" or "Payment Schedule" within the agreement, rather than on a 'services rendered' basis. The student-athlete may earn ongoing pay because CU has the ongoing ability to use the student-athlete’s NIL Rights. 

As part of the Big 12 Conference agreement, CU will begin issuing rev share payments to student-athletes via PayPal HyperWallet in September 2025. The NIL Office will guide student-athletes through the onboarding process.

These funds are taxable income for the student-athlete. During the payment onboarding process, the student-athlete will complete a W-9 Form. Each year, the student-athlete will receive IRS Form 1099s for tax-filing purposes. Student-athletes are responsible for filing their own federal and state taxes. Because student-athletes are considered “independent contractors” (not employees) of the University, they receive their license fee in full, without any deductions or withholding*.

Because of the dual nature of the license fee (student-athletes are being compensated for royalties from our use of their NIL Rights as well as for performing services for us related to their NIL Rights), domestic student-athletes may receive a Form 1099-NEC and a Form 1099-MISC each year. Regardless of payment mechanism, all dollars issued in 2025 under the licensing agreement will be accounted for on the Form 1099s that the student-athlete will receive in early 2026.


The Services*
When a student-athlete is requested to perform a service under their licensing agreement (like attending a Buff Club donor dinner or participating in a post-competition autograph session), we will ensure that these obligations fit in their busy schedule. These activities will not interfere or conflict with athletic, academic or wellness commitments. Student-athletes will receive advance notice of an obligation - they will be asked to verify their availability and confirm their participation. All obligations will be added to the student-athlete’s TeamWorks calendar. These service obligations may involve the entire team or be an individual activity, depending on the marketing and promotional needs of the Athletics Department.

Under the Standard Terms & Conditions “Failure to Fulfill Assigned Services” clause, a student-athlete who fails to fulfill a duly assigned service (no call/no show, unexcused absence, etc.) will be notified of their nonperformance and assigned another service obligation. The student-athlete must then adequately complete their reassigned service to avoid a 50% reduction of their next license fee installment.


Confidentiality
All parties to the licensing agreement, the student-athlete (plus any parent, guardian or representative who sign the agreement) and CU are bound by confidentiality. All confidential, proprietary and non-public aspects of the agreement and related services/obligation may not be disclosed to anyone beyond the student-athlete's tax or legal advisors or the NCAA, Conference or other regulatory bodies as mandated under the Settlement or otherwise required by law. CU is additionally bound by FERPA and state law. In response to a request under the Colorado Open Records Act, we will not disclose any Personally Identifiable Information (including the license fee) contained within the agreement or any communication or material related to the agreement.


Third Party NIL Deals
In addition to their licensing agreement with CU, student-athletes may still engage in individual NIL deals with noninstitutional 3rd party companies, like they’ve been able to previously. The biggest differences now, though, are (1) Settlement rules require all deals worth $600+ be reviewed and approved by a national clearinghouse before the student-athlete may accept or engage in the deal and (2) there are eligibility consequences for not complying with these rules. This national clearinghouse, called NIL Go, is an online platform operated by Deloitte and overseen by the College Sports Commission. The purpose of this clearinghouse is to evaluate whether 3rd party NIL deals are made with the purposes of using a student-athlete’s NIL for a valid business purpose and do not exceed a reasonable range of compensation. 

Student-athletes must first create their NIL Go account. They’ve received emails detailing the sign-up process. The informational + instructional document is always accessible to them on their TeamWorks home page. If a student-athlete has an NIL Agent, they can add one representative to their NIL Go account -- this representative can enter information on their behalf, but only the student-athlete can officially submit the report.

Student-athletes are responsible for reporting their 3rd party NIL Deals with compensation (cash, goods, services, discounts) equals or exceeds $600 in the aggregate. This report is due within 5 business days of execution of the NIL contract  but student-athletes are strongly advised to submit any offer they would like to accept to NIL Go before signing, accepting benefits or performing contractual obligations. If a student-athlete begins a contract prior to NIL Go Clearinghouse approval, there is a risk that the deal will not be cleared and they will either have to pay back the funds already accepted or face the potential eligibility consequences.

A reported deal is first evaluated for the Payor’s association to our university. If a Payor is deemed “associated” to the institution, the deal will then be evaluated for “Valid Business Purpose” (whether the deal is made for the purpose of using the student-athlete’s NIL for legitimately advancing business objectives) and “Range of Compensation” (whether the compensation reflects the obligations under the contract and aligns with similarly situated individuals in comparable deals). 

If a deal is deemed “Not Cleared,” the student-athlete can cancel the deal, negotiate the terms of the deal with the Payor and resubmit the deal for reevaluation, accept the Not Cleared deal and proceed at the risk of jeopardizing their NCAA eligibility or request a neutral arbitrator review the deal.


*International Student-Athletes
The federal Student and Exchange Visitor Program ("SEVP"), part of the Immigration and Customs Enforcement ("ICE") at the Department of Homeland Security ("DHS") outlines the employment restrictions and conditions that apply to international students on certain types of visas. Over the past 4 years, DHS has been silent about NIL specifics but has not issued any modifications to its stance that, under the Immigration and Nationality Act, accepting goods and services may constitute "active income" and performing promotional and marketing services may be considered "employment activities" in violation of student visa regulations.

Rev Share
To ensure that international student-athletes comply with their student visa rules, they will be offered a Passive Licensing Agreement. Different from the agreement presented to domestic student-athletes, the Passive Licensing Agreement does not include a Services clause. International student-athletes will not be requested or assigned any active service obligation - the international student-athlete will, instead, be compensated exclusively for granting CU the ability to use their NIL Rights throughout our course of business. 
The funds paid by CU to international student-athletes are considered royalties. As such, these payments are subject to the mandatory 30% federal tax NRA withholding. Like other tax withholdings, international student-athletes may be eligible to receive a refund of some or all of this money when they file a U.S. federal tax return.

3rd Party NIL
To avoid "unauthorized employment," international student-athletes are advised to only engage in transactional, quid pro quo NIL deals when they are physically outside of the U.S. and to only perform the work required of them in the NIL deal (including social media posts) outside of the U.S.

CU Athletics works closely with University Counsel, International Scholar and Student Services, and the International Tax Office to ensure our international student-athlete policies are informed, up-to-date, and protective. International student-athletes are strongly encouraged to consult with their parent/guardian, campus resources or an international law attorney prior to signing the proferred institutional licensing agreement and/or engaging in 3rd party NIL deals. 


Frequently Asked Questions
Q: Are all NCAA schools required to participate in revenue sharing?
A: No, only the defendant conferences (ACC, Big Ten, Big 12, SEC and Pac-12) are bound by the Settlement rules and required to engage in revenue sharing. Participation is permissive for all other conferences and institutions.


Q: What is a "limited exclusive license"?
A: By signing this agreement, the license the student-athlete is granting to us is exclusive as to other Universities during the term. During the term, the student-athlete may not enter into a licensing agreement with another institution. Upon transfer, their licensing agreement with CU must be terminated or discharged before the student-athlete can enter into a similar agreement with their next school. This license is non-exclusive as to other non-institutional third parties; student-athletes are free to grant a license to their NIL rights to third parties in their individual NIL deals.


Q: What are "historical license rights"?
A: Historical License Rights refers to specific permissions granted to a licensee (here, CU) to use a licensor's (the student-athlete's) NIL Rights in a limited capacity after the term of the agreement. In our case, this allows us to use the student-athlete's NIL Rights for internal, historical and archival purposes like the All American flag pole banners you see on the Buff Walk or the images you see of previous student-athletes on the walls of the CU Events Center. These Historical License Rights are strictly non-commercial - so CU cannot (and will not) monetize or sell anything featuring the student-athlete's NIL Rights after the term of the agreement.


Q: What if my student-athlete has an LLC?
A: Student-athletes who own and operate a business entity, like an LLC, will be asked to sign their licensing agreement in both an individual capacity and as a representative of their business. These student-athletes will be able to receive payments to this entity by completing the payment onboarding process(es) using their EIN.  Student-athletes with LLCs that are taxed as disregarded entities or partnerships will receive Form 1099s from CU or our payment processor each year. Under Settlement and NCAA rules, student-athletes and their business entities are considered one and the same with respect to reporting requirements, deal evaluation, and potential consequences.  


Q: How does this impact officially-licensed student-athlete merchandise?
A: CU continues to operate our two group licensing programs with The Brandr Group (which manages, among other outlets, the Colorado NIL Store, Athlete's Thread and Rally House) and OneTeam (Fanatics and the EA Sports CFB video game). In order to participate in these and have officially-licensed merchandise sold on their behalf, student-athletes must sign the relevant Group Licensing Agreement. Student-athletes earn royalties from the sales of products featuring their NIL. Every participant in the group gets the same royalty rate, set by the vendor. These are nonexclusive agreements, so participation in our group licensing programs does not prevent a student-athlete from selling their own NIL merchandise. Group licensing agreements are considered third party NIL deals but the student-athlete is not responsible for reporting them to the NIL Go Clearinghouse until they earn $600 in royalties. Any royalties earned are "above cap" dollars, not part of their license fee from CU. 


Q: What happened to Alston educational benefits?
A: In 2021, the Supreme Court of the United States ruled in NCAA v. Alston that institutions could provide up to $5980 in "educational benefits" to student-athletes each academic year. Although the Settlement accounts for Alston benefits, here at CU, we've rolled these payments into the licensing agreement. Returning student-athletes will receive a 2025-26 licensing agreement for an amount equivalent to their maximum Alston benefit from the 2024-25 school year. For example, last school year, a full scholarship student-athlete received $2000 as their Initial Benefit at the start of each semester and was able to earn $990 throughout the course of each semester as their Programming Benefit for a total of $5980. That same student-athlete will be offered a licensing agreement for, at minimum, $5980 for this school year.

Click here to read the CU Athletics public/fan FAQ on revenue sharing