Texas Law Allows High School Seniors Over 17 To Sign NIL Deals After College Enrollment

Texas Governor Greg Abbott signed House Bill 126 into law, allowing high school athletes aged 17 and older to sign name, image, and likeness (NIL) deals only after enrolling in college, aligning the state with the upcoming House v. NCAA settlement. The legislation permits universities to directly pay athletes for their NIL during team-sanctioned events and use these contracts as recruiting incentives, a significant shift from prior restrictions that barred direct payments by schools. While the University Interscholastic League (UIL) still prohibits high school athletes from profiting on NIL while in high school, the new law mandates disclosure of NIL contracts to the athletes' universities to ensure compliance with team rules. The bill explicitly bans endorsements related to alcohol, tobacco, nicotine, sports wagering, and sexually oriented businesses for student-athletes. It also clarifies that student-athletes are not employees of their institutions and cannot use institutional trademarks or facilities in NIL deals without explicit permission. This legislation removes state-imposed barriers limiting participation in the NIL economy and positions Texas universities to compete more effectively in recruiting top athletes nationally.