Texas has some of the strictest NIL rules in the country, and if you're an athlete (or a parent), you need to understand them before signing anything. This guide breaks down every rule that matters, in plain English.
Texas passed HB 126 in June 2025, updating its NIL framework significantly. Whether you're a high school junior getting your first brand deal or a D1 starter at UT Austin, here's what the law actually says.
Who Can Sign NIL Deals in Texas?
Athletes 17 and older can sign NIL deals in Texas. That includes high school athletes. Texas is one of the states that allows HS NIL activity.
📋 Free: NIL Contract Checklist — 10 things every athlete should verify before signing.
But here's the catch that trips people up:
High school athletes in Texas can sign NIL deals, but cannot receive payment until they enroll in college. The deal itself is valid, but compensation is deferred. If the brand sends payment early, you could face eligibility issues.
This is unique to Texas. California lets you get paid immediately. Florida lets you get paid immediately. Texas makes you wait.
Disclosure Requirements
Every NIL deal in Texas must be disclosed to your school's compliance office within 5 business days of signing. This is done through the NCAA NIL Go portal.
- Who reports: The athlete (you), not the brand
- Deadline: 5 business days from signing date
- How: NCAA NIL Go portal (your school compliance office can walk you through it)
- What happens if you miss it: Your school can flag the deal and the CSC may review it, potentially jeopardizing the agreement
Prohibited Categories
Texas bans NIL deals with brands in these categories:
- Alcohol: No beer, wine, spirits, or brand deals with bars/breweries
- Tobacco: Includes vaping and nicotine products
- Gambling: No sportsbooks, casinos, or betting platforms
- Cannabis: Even if legal in other states, Texas bans cannabis NIL deals
- Adult entertainment: No adult content brands of any kind
A CBD company isn't technically cannabis, but Texas compliance offices may flag it anyway. A restaurant with a bar isn't a "bar," but if their brand identity centers on alcohol, it could be rejected. When in doubt, check with your compliance office before signing.
School Sponsor Conflicts
This is the #1 reason NIL deals get rejected in Texas, and across the country. School sponsor conflicts account for roughly 35% of all CSC rejections.
Here's how it works: if your school has a deal with Nike, you cannot sign a personal NIL deal with Adidas, Under Armour, or any competing apparel brand. The conflict is based on product category, not just the specific brand.
Major Texas schools with strict sponsor enforcement:
- UT Austin: Nike school, strict conflict enforcement
- Texas A&M: Adidas school, similar restrictions
- Baylor: Nike school
- TCU: Nike school
School logo use requires written permission. You cannot use your school's name, logo, or trademarks in any NIL deal without explicit written approval from the athletic department.
High School vs. College: Texas Comparison
| Rule | High School (17+) | College |
|---|---|---|
| Can sign deals? | Yes (17+) | Yes |
| Can receive payment? | No, deferred until enrollment | Yes, immediately |
| Disclosure required? | Yes, 5 business days | Yes, 5 business days |
| Prohibited categories | Alcohol, tobacco, gambling, cannabis, adult | Same |
| School sponsor conflicts | Check with your HS | Strictly enforced |
| Agent required? | No | No (recommended for large deals) |
| Tax reporting ($600+) | Yes, even deferred payments count | Yes |
Tax Implications
Any NIL deal worth $600 or more must be reported on your taxes. The brand should issue you a 1099 form. Texas has no state income tax, which is a significant advantage, you'll only owe federal taxes on NIL earnings.
For high school athletes with deferred payments: the tax obligation applies in the year you receive the payment, not when you sign the deal. Keep records of all agreements.
CSC Rejection Rate
Texas NIL deals have a CSC rejection rate of approximately 8-10%. The vast majority of rejections are due to school sponsor conflicts, not prohibited categories. This is actually lower than the national average, but it still means roughly 1 in 10 deals gets flagged.
Texas NIL Compliance Checklist
- Confirm you're 17+ before signing any deal
- Understand that payment is deferred until college enrollment (HS athletes)
- Check brand against prohibited categories (alcohol, tobacco, gambling, cannabis, adult)
- Verify deal doesn't conflict with school sponsor agreements
- Get written permission before using school name/logo
- Disclose deal within 5 business days via NIL Go portal
- Save all contracts and correspondence
- Report income $600+ on federal taxes (no state tax in TX)
- Consider consulting an attorney for deals over $5,000
Bottom Line
Texas lets you play the NIL game, but the rules are tighter than most states. The payment deferral for HS athletes is the biggest gotcha, and school sponsor conflicts catch more athletes off guard than anything else.
Before you sign anything, run the deal through PACT. We check fairness, flag compliance issues specific to Texas, and give you a plain-language breakdown of what the deal actually means.