From Erramilli Law Group – Trusted Legal Advocates for Athletes and Entrepreneurs in the NIL Era

The landscape of Name, Image, and Likeness (NIL) is shifting rapidly, creating new opportunities and new challenges for college athletes, families, and the teams that support them. Recently, Nik Erramilli joined host Josh Stein on the Sports ’N Torts podcast for an in-depth discussion on what NIL looks like today, how it has changed since its inception, and where the industry is headed next.

At Erramilli Law Group, we guide athletes, agents, and schools through these partnerships with the legal clarity needed to build sustainable profit models in the NIL space.

This episode is essential listening for anyone navigating the NIL marketplace. Below are the key takeaways and legal insights from Nik’s conversation.

The Foundation of NIL: How We Got Here

The episode begins by breaking down the history of NIL, including the impact of the O’Bannon and Alston cases that dismantled the old amateurism model. These decisions paved the way for amateur athletes to be paid for their services, a right long overdue but still largely undefined.

From the start, NIL lacked structure. With no standardized contracts and uneven oversight, athletes were thrust into a fast-moving marketplace where legal experience became essential.

The NCAA House Settlement: Reshaping the Rules

One of the biggest topics Nik discussed was the NCAA House settlement, which fundamentally rewires the business model of college sports. Under the settlement:

  • Power 5 (now 4 after Pac 12’s ostensible dissolution) schools now operate under a $20.5 million annual revenue cap allocated for athlete compensation (this is not NIL revenue).
  • That figure is derived from aggregating revenue shares, bowl game revenues, royalties, ticket sales, NCAA revenue shares, media rights, and then taking 22% allocation formula from those gross revenues.
  • Smaller schools must operate within the same cap, widening the recruitment and competitive gap.

This cap pushes coaches and athletic departments to think more like professional front offices managing rosters, budgets, and compensation strategies with precision.

A Wild West Market: No Standardization, High Stake

Nik emphasized that NIL today is still the “Wild West.” Contracts vary widely. Deliverables are inconsistent. Enforcement is unclear. And everything from compensation to transfer decisions is often short-term.

Key risks highlighted in the episode include:

  • Nonstandard contracts lack clear protection;
  • Short-term one-year arrangements that limit stability;
  • Potential litigation waves once disputes begin reaching the courts; and
  • Buyouts and long-term deals will emerge as the market matures.

This environment makes legal oversight more crucial than ever.

Roster Strategy, Transfer Decisions & Emerging NIL Opportunities

NIL has fundamentally changed how college programs manage their rosters. Coaches must now re-recruit their own players each year, strategically allocate limited NIL budgets, and balance high-value positions against overall team depth, a proper “Moneyball” approach where data and ROI matter more than tradition.

This shift has also created new opportunities beyond the spotlight. Sports like volleyball, wrestling, gymnastics, track & field, and swimming are gaining meaningful NIL traction through strong engagement and social presence. Some schools without major football programs may even choose to invest heavily in multiple below-the-line sports, which can aggregate to something larger.

Navigating the New Athlete Pipeline, Collective Influence & What’s Ahead

With more roster spots being filled by collegiate athletes who want to capitalize on their NIL dollars, and experienced transfer athletes garnering higher valuations, high-school seniors are increasingly squeezed out of top Division I programs. In the episode, families must be more proactive than ever, understanding Junior College and Division 2 pathways, focusing on performance over promises, and seeking guidance early.

Looking ahead, Nik predicts significant changes:

  • Revenue caps rising beyond $20.5M;
  • Greater transparency through public payroll data;
  • Litigation defining rules and enforcement; and
  • The emergence of enforceable multi-year athlete contracts.

As Nik emphasized, “This space will be regulated through litigation, so know the law, read the contract, and get good counsel.”

Secure Your NIL Future Today

Do not let a lack of legal clarity hinder your future opportunities. Our team will guide you through every step of the NIL process.

Take the next step to secure your future. Call today at 650-503-9314 and ensure your NIL rights are fully protected.