Prohibited compensation and agreements

(a) Certain agreements and compensation prohibited An institution, an employee of an institution, a volunteer of an institution, a conference, an employee of a conference, or an associated entity shall not— (1) except as provided in subsection (b), arrange, provide, offer, or permit, directly or indirectly, compensation in an amount that would circumvent or result in the institution exceeding the revenue share cap to— (A) a student athlete, a group of student athletes, or their family members; or (B) a prospective student athlete, a group of prospective student athletes, or their family members; or (2) enter into a name, image, and likeness agreement with a student athlete or prospective student athlete that is not— (A) for a valid business purpose; and (B) commensurate with compensation paid to individuals with a similar profile, reputation, or notability who are not student athletes or prospective student athletes. (b) Personal athletic and education benefits permitted An intercollegiate athletic association, a conference, an institution, or any representative thereof shall not, pursuant to the Injunctive Relief Settlement Agreement approved by the court in In Re College Athlete NIL Litigation, No. 20–cv–03919 (N.D. Cal. June 6, 2025), restrict the ability of a student athlete enrolled at an institution to receive compensation from an intercollegiate athletic association, an institution, a conference, or an associated entity, for personal benefits related to education or intercollegiate athletics, provided they are— (1) reasonable costs of transportation and temporary lodging for family members of a student athlete while the student athlete is experiencing a documented physical or mental health concern or participating in an intercollegiate athletic competition; (2) reasonable costs for meals, shelter, medical coverage, and medical expenses not provided or covered by the institution; and (3) reasonable education-related financial benefits, such as institution fees, books, or other incidental educational expenses that are not otherwise provided by the institution. (c) Valid business purpose A name, image, and likeness agreement with a student athlete shall be for a valid business purpose. (d) Institution defined In this section, the term institution means— (1) an institution of higher education, as that term is defined in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001); and (2) an institution that is a party to, through membership in a conference or otherwise, In Re College Athlete NIL Litigation, No. 20–cv–03919 (N.D. Cal. June 6, 2025), or has opted in to the Injunctive Relief Settlement in that case.