Authors: Alexis Kopcienski, Esq., Katy Boehmer-Abbott
Name, image, and likeness continues to transform college athletics, and New Jersey continues to respond to this evolving industry. The most recent response includes a new NIL statute. Addressing the national changes to NIL law and institutions increasing reliance on it, the New Jersey Legislature amended the state’s NIL statute. The amended law provides additional guidance and protections to student-athletes in New Jersey.
If you’re seeking to benefit from these protections, Lyons & Associates can review contracts, protect eligibility, and help you navigate the evolving world of NIL.
Why was a new bill needed?
New Jersey’s original NIL legislation
The New Jersey Legislature was an early leader in NIL legislation. New Jersey was among the first states to act, enacting the “New Jersey Fair Play Act” in 2020. While the Act was not set to take effect for five academic years, it was created and approved before the NIL landscape was fully developed. In July 2021, NCAA enacted its interim NIL Policy, initiating the widespread implementation of NIL across institutions. Suddenly, NIL became the driving force in collegiate athletic departments.
Responding to drastic changes in college athletics
The presence of NIL was further intensified with the House v. NCAA Settlement. The 2025 decision granted Division I institutions the ability to share portions of the athletic department’s budgets directly with their student-athletes through revenue-sharing payments. The payments may constitute up to $20.5 million with the amount subject to an annual increase. This drastic change in college athletics, however, was inconsistent with the New Jersey Fair Play Act.
The Act directly prohibited a four-year institution from compensating a current or prospective student-athlete for their name, image, and likeness, so New Jersey responded. The response was a new NIL legislation that repealed the Act.
New Jersey’s Current NIL Law
The New Jersey Legislature enacted an updated NIL law in May 2025, applying to all four-year Division I and II institutions. The following highlights the differences of the law from the original Act.
Institution’s Role
The institution must permit a student-athlete from accepting compensation for their name, image, and likeness. Notably, the law responds to the House v. NCAA Settlement by permitting a four year institution or related entity to directly compensate their student-athletes for their name, image, and likeness.
Scope of NIL Deals
The law broadens the scope of permissible NIL deals. Rather than generally banning all NIL deals involving alcohol, tobacco, electronic smoking devices, and cannabis, it limits those restrictions to student-athletes under the age of 21. The scope is further expanded by permitting all student-athletes to enter into NIL agreements related to casinos, gambling and sports betting.
Student-athlete Protections
The student-athlete is not required to publicly disclose any contract they enter into regarding their name, image, and likeness.
Attorney’s Role
The law emphasizes a student-athletes right to seek professional representation for legal matters, clarifying that an attorney serves as a fiduciary to the student-athlete.
Athletic Associations, Conferences, and NCAA’s Role
The law regulates the conduct of athletic associations and conferences, including the NCAA. Such organizations may not deny an institution membership because a student-athlete has accepted an NIL deal or obtained representation by an agent or attorney related to the deal. The organizations may not interfere with institutions and student-athletes NIL rights under this law. Thus, an institution may compensate student-athletes and otherwise assist them in securing NIL opportunities, without facing adverse action from any intercollegiate athletic organization.
Educational Opportunities
All four-year institutions that offer athletic scholarships are required to provide student-athletes with an NIL program that includes educational materials such as financial literacy, brand management, and life skills. The program is designed to equip student-athletes with the necessary skills to navigate the evolving world of NIL.
Conclusion
As seen over the past five years, NIL in college athletics continues to rapidly evolve. New Jersey Legislature has responded to these changes. A student athlete’s rights are protected by these changes, so it is crucial to stay current with the developing legislation.
