New guidance from the Department of Education’s Office for Civil Rights clarifies how Name, Image, and Likeness (NIL) compensation interacts with Title IX regulations. Released in a detailed memo, the guidance emphasizes that athletic programs must maintain equal opportunities for all athletes regardless of gender, even when it comes to NIL deals.

(Scott Taetsch/NCAA Photos via Getty Images/File)

The Department of Education considers NIL payments from schools to be a form of "athletic financial assistance" under Title IX. This broad definition encompasses any aid connected to an athlete's participation, not just scholarships or grants. Significantly, the memo points out that Title IX obligations extend to situations where private funding, such as booster club contributions or donations, creates gender-based disparities within athletic programs. The source of the funds, whether public or private, does not exempt schools from their responsibility to ensure equitable treatment for all student-athletes.

(Tierney L. Cross/File)

While the memo addresses school-provided NIL compensation, it acknowledges the complexity of third-party NIL agreements. Given the diverse and evolving nature of these deals, the guidance stops short of offering specific rules for their Title IX implications. Instead, it highlights the need for a case-by-case assessment to determine whether such agreements create gender-based inequalities that trigger Title IX obligations. With the upcoming change in presidential administration, it is anticipated that these guidelines may be subject to review and potential revision under the new leadership.