Friday, May 8, 2026
Law

As NCAA Threatens More NIL Regulation, States Back Off

  • Some state NIL laws prohibit things that could help schools with recruiting.
  • As a result, many states are loosening NIL laws or repealing them, just as the NCAA appears to be getting stricter.
Jenna Watson/IndyStar

Last week, the NCAA announced revised NIL guidelines meant to discourage schools and boosters from using deals as recruiting inducements — and said some programs could be subject to investigation.

But while the governing body attempts to exercise more regulation over NIL, another group is doing the exact opposite: state legislatures.

Since 2019, 24 states have passed NIL laws, according to a Bloomberg tally. 

Originally, the laws were put in place to ensure that athletes could participate in NIL even if the NCAA didn’t change its own policy. Now it’s clear that some laws prohibit moves that could help schools with recruiting — like the ability for athletic department staff to arrange deals for athletes.

Many states are now repealing or amending their laws to help their local schools:

  • In February, Alabama became the first state to fully repeal its law.
  • An amendment to Missouri’s law allowing schools to arrange deals was passed last week and awaits the governor’s signature.
  • Mississippi passed a similar amendment.
  • Legislators in Florida are considering loosening their restrictions, as well.

Enforcement Conundrum

As the Bloomberg article pointed out, it’s unclear how states plan to police deals that violate their own laws. So far, none have publicly punished schools or athletes for NIL activity.

It may not behoove them to reprimand their own local schools and athletes, either. That alone could make a state look like a less-than-friendly destination for an athlete seeking deals.

This field is for validation purposes and should be left unchanged.

Sign up for
The Memo Newsletter

Get the biggest stories and best analysis on the business of sports delivered to your inbox twice every weekday and twice on weekends.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

exclusive

What Illinois’s $20M Jumbotron Says About the Future of CFB Stadiums

Illinois installed the largest video display in college football in January.

Tournament Darling LIU Had 1,000 Ineligible Athletes, NCAA Says

LIU merged its Brooklyn and Long Island campuses in 2019. 

Most Big 12 Schools Turning Down $30M RedBird Credit Line

11 schools say they’re declining the money. They have a one-year window.

Will Wade Could Follow the Illinois Blueprint at LSU

LSU re-hired Wade in March after firing him in 2022. 

Featured Today

Matt Palumb

Pro Lacrosse’s Top Ref Is As Famous As the Players

The last celebrity referee is in the Premier Lacrosse League.
May 2, 2026; Atlanta, Georgia, USA; Atlanta United midfielder Saba Lobjanidze (11) reacts to his goal against the CF Montréal in the first half at Mercedes-Benz Stadium. Mandatory Credit
May 7, 2026

How Atlanta Unexpectedly Became the Epicenter of U.S. Soccer

U.S. Soccer is opening a new national HQ in Georgia.
Tottenham Hotspur
May 6, 2026

Tottenham Hotspur Is Facing a Billion-Dollar Disaster

A seemingly improbable drop to England’s second tier is a tangible possibility.
Cricket - Indian Premier League - IPL - Final - Royal Challengers Bengaluru v Punjab Kings - Narendra Modi Stadium, Ahmedabad, India - June 4, 2025 Royal Challengers Bengaluru's Rajat Patidar lifts the trophy as he celebrates with teammates after winning the Indian Premier League
May 5, 2026

How Private Equity Fell in Love With Indian Cricket

India’s U.S.-style cricket league has become a private-equity playground.
Mar 9, 2026; Tuscaloosa, AL, USA; Bowlero has rebranded itself as Lucky Strike. It is in the same location new to the mall on McFarland Blvd.

Lawsuit Claims Lucky Strike Built Bowling Monopoly

The company has allegedly caused bowling prices to triple in some cases.
April 30, 2026

Puma Denies Its Carbon-Plated Shoes Cause Injuries After Lawsuit

The company pushed back on claims that its shoes increased injury risk.
Oct 8, 2025; Phoenix, Arizona, USA; Professional boxer Floyd Mayweather attends the game between the Las Vegas Aces and the Phoenix Mercury for game three of the 2025 WNBA Finals at PHX Arena.
May 6, 2026

Floyd Mayweather Jr. Calls Off $100M Legal Fight With Business Insider

The boxer voluntarily dismissed his lawsuit.
Sponsored

What Is It Like to Run the Knicks?

Dave Checketts on his time running the Knicks & Jazz, Jordan war stories, and his investment strategy across major sports leagues.
April 28, 2026

Damon Jones Admits He Sold LeBron Injury Information to Gamblers

Jones also pleaded guilty Tuesday in the rigged poker case.
April 28, 2026

Star Runner Says ‘Defective’ Puma Shoes Ruined Her Career

A series of foot surgeries prematurely ended her career.
Mar 31, 2025; Washington, District of Columbia, USA; Miami Heat guard Terry Rozier (2) drives to the basket against Washington Wizards guard AJ Johnson (5) during the first quarter at Capital One Arena. Mandatory Credit: Reggie Hildred-Imagn Images
April 27, 2026

Prosecutors to Bring Bribery Charges Against Terry Rozier

Rozier allegedly “solicited and accepted a bribe.”
Apr 22, 2026; Oklahoma City, Oklahoma, USA; Phoenix Suns guard Jalen Green (4) drives around Oklahoma City Thunder guard Alex Caruso (9) in the first half during game two of the first round of the 2026 NBA Playoffs at Paycom Center.
April 24, 2026

Suns Beat Ex-Employee’s Racial Bias, Security Lawsuit

“There was no settlement and there will be no payment to Mr. Traylor.”