As the NCAA enters a new phase of collegiate athletics defined by personal branding, sponsorships, and student-athlete entrepreneurship, the need for specialized risk management has never been greater. Since July 2021, when the NCAA first permitted athletes to profit from their names, images, and likenesses (NIL), the financial and legal frameworks of college sports have shifted dramatically.
Today, NIL deals are a mainstream feature of the collegiate experience, especially for high-profile athletes. NIL collectives—groups often formed by boosters or supporters to pool resources and fund athlete endorsements—play a key role in this new landscape. But this rapid commercialization brings new exposure for universities, NIL collectives, brands, and athletes alike. Whether it’s a public backlash from a controversial endorsement, a contract dispute involving a third-party collective, or a Title IX-related claim over unequal NIL access, the liabilities are real and growing.
As this market matures, actuaries are uniquely positioned to help quantify and manage these emerging risks. Their expertise in modeling uncertain events; evaluating loss frequency and severity; and designing fair, sustainable pricing structures can help insurers and institutions alike navigate the financial volatility surrounding NIL. In a landscape where traditional risk metrics fall short, actuarial insight will be key to developing coverage models that reflect both the variability of athlete exposure and the shifting legal environment.
The expanding NIL risk landscape
While student-athletes are not yet considered employees of their institutions, legal challenges such as NCAA v. Johnson and growing unionization efforts1 could soon change that. In our prior article “From amateurism to employment: Legal, financial, and insurance implications for college athletes,” we speculated on the consequences if college athletes were reclassified as employees. However, even without this change, universities, student-athletes, and NIL collectives face increased exposure to legal, financial, and reputational risks—many of which remain under-addressed by schools, brokers, and insurers, highlighting a critical area for improvement.
Consider the following:
- Injury-related NIL income loss is a growing concern, especially when an athlete’s marketability hinges on their on-field presence.
- Reputational harm can arise from athlete endorsements that contradict a university’s values or academic mission.
- Discrimination claims may be brought if athletes believe NIL opportunities are facilitated unequally by gender, race, or sport.
- Contract disputes can occur when collectives or schools broker flawed deals (for example, deals that include unclear terms/unrealistic expectations or have ambiguous language/omit key clauses around what happens if an athlete becomes injured or transfers), or are accused of interfering in athlete decisions.
- Athletes themselves may face risks if they enter contracts with unclear terms, make promises they can’t keep, or give up too much control of how their name or image is used after the deal is signed.
As NIL continues to evolve, stakeholders need tailored, rather than retrofitted, risk tools.
Insurance coverage solutions to consider in light of NIL
Given the unique profile of NIL risks, standard university insurance programs are often inadequate. To manage this fragmented and fast-moving environment, brokers and insurers are beginning to craft specialized coverage offerings. Following are coverage options that institutions, collectives, and athletes should consider, along with real-world case studies illustrating their relevance.
NIL interruption insurance: Protecting athlete income
This insurance protects athletes from lost NIL income due to injury, illness, or eligibility issues. Optional coverage may include reputational harm or loss of visibility. Although contracts are rarely canceled due to injury, reduced performance often impacts earnings.
Most NIL contracts are short-term and centered around social posts, seasonal campaigns, or specific events. While rare, multiyear agreements secured by top-tier athletes increase both obligations and financial risk, making NIL interruption insurance particularly relevant.
Despite NCAA rules prohibiting pay tied to athletic performance, many contracts contain vague terms that jeopardize earnings based on performance. For example, clauses referencing an athlete’s “impaired marketability” could be used to reduce payments after injuries or off-campus incidents.2 “Termination without cause” clauses let brands end deals unilaterally, often without notice. Some contracts also grant brands indefinite NIL usage rights, which can harm future earnings unless limited (e.g., a 30- to 60-day post-contract marketing period).3
Athletes with limited legal support are especially vulnerable to one-sided contracts that reduce their leverage or earning potential over time.
Example: LSU gymnast Olivia “Livvy” Dunne had an NIL valuation around $4 million in 2024, reportedly earning over $500,000 from a single sponsored post.4,5 After her college career ended in 2025, her valuation remained high, but reduced visibility could lead to fewer deals, which highlights how NIL income often depends on public exposure, even when contracts remain valid.
Reputational risk insurance coverage and NIL: Managing controversial endorsements
Athlete endorsements that conflict with a university’s values can damage reputations across the board. Reputational risk coverage helps manage fallout through legal support, PR strategy, and stakeholder communication.
Example: Olivia Dunne’s paid TikTok promoting Caktus AI—a tool marketed for writing essays —sparked criticism. Though LSU didn't name her directly, it issued a warning about academic misconduct related to AI use. Educators argued the endorsement encouraged plagiarism, prompting calls for clearer NIL ethical standards.6
While this incident mostly caused public debate, similar scenarios could trigger more serious consequences. If an athlete promotes a product that is polarizing or misaligned with university values, the reputational damage could affect university partnerships and donor support, and even prompt closer oversight from compliance bodies or regulatory agencies, depending on the nature of the issue.
A NIL-specific reputational risk policy covering legal consultation, communications planning, and reputational monitoring could help both athletes and institutions respond quickly and strategically to crisis events.
Compliance and discrimination insurance coverage: Equal access to NIL
Universities are increasingly scrutinized for how they facilitate NIL opportunities. Disparities in promotional support, donor access, and media exposure can lead to Title IX-style complaints with financial consequences.
Example: In 2023, 32 female athletes at the University of Oregon filed a Title IX lawsuit, claiming male athletes—particularly in football and basketball—receive more NIL-related support via school media, promotional visibility, and connections to the university-affiliated NIL collective, Division Street Inc.7
The suit argues that this unequal support materially affects NIL earning potential. Plaintiffs noted that male athletes’ NIL deals are highlighted on official platforms, while female athletes are often ignored. They also cited unequal access to facilities and training as further evidence of systemic bias.
Though NIL deals are technically with third parties, the lawsuit claims that unequal facilitation by the university violates Title IX by creating a structural advantage for male athletes.
Supporting this, a 2023 Opendorse report found that male athletes received 67.4% of total Division I NIL compensation, despite women often having comparable social media followings.8 This implies that institutional factors, not just market demand, may drive disparities.
The Oregon case remains in federal court and could set a precedent for how NIL-related support is regulated under Title IX or similar frameworks. Its outcome may shape future university practices around gender, race, and socioeconomic equity in NIL.
To manage growing legal risk, schools should consider adding NIL-specific coverage to cover legal fees and settlements tied to claims of discrimination in NIL facilitation. As NIL law evolves, proactive risk and compliance strategies will be essential.
Contract liability insurance: Protecting collectives and brokers under NIL
As NIL agreements become more complex and competitive, contract disputes are increasingly common. NIL collectives pool resources to facilitate endorsement deals for student-athletes. While they operate independently from schools, collectives play a central role in securing and managing athlete compensation, putting them at legal risk when deals fall through or players are poached despite existing agreements.
Example: One of the first high-profile NIL interference cases came in 2025, when Wisconsin collective VC Connect sued representatives from the University of Miami. They alleged that Miami staff tampered with a binding NIL deal between Wisconsin and defensive back Xavier Lucas, convincing him to transfer in violation of a six-figure agreement. The lawsuit centered on tortious interference, breach of contract, and misrepresentation.9
In another case, Jaden Rashada, then a high school quarterback, signed a highly publicized $13 million NIL agreement with a Florida collective, only for the deal to collapse due to funding shortfalls. He eventually sued, citing breach of contract.10
If these collectives had held NIL-specific liability insurance, they could have offset the legal fallout tied to high-value disputes.
Conclusion: Preparing for the next phase of NIL risk
As NIL continues to redefine collegiate athletics, stakeholders must adapt not only to opportunities but also evolving liabilities, from income loss and reputational harm to Title IX disputes and contract litigation. Traditional insurance models and compliance protocols aren’t equipped for this new terrain.
Athletes, schools, and collectives all have distinct but interconnected exposures. Risk transfer mechanisms must be just as collaborative. Here actuaries can play a pivotal role in bridging the gap between risk identification and financial protection, designing models that assess NIL volatility, forecast claim patterns, and ensure that premiums align with real-world exposures. Their work can help insurers craft viable products, aid universities in budgeting for emerging liabilities, and even inform collective governance structures.
Institutions that integrate actuarial expertise into their NIL strategy—alongside NIL-specific coverage such as interruption insurance, reputational risk policies, discrimination protections, and contract liability coverage—will be best positioned to safeguard both their athletes and reputations. Proactive risk management isn’t just support—it’s central to NIL’s sustainability and fairness. In our next article, we’ll dive deeper into the NIL insurance market, profiling key players, product innovations, and the underwriting trends shaping the future of collegiate sports.
1 Wiessner, D. (March 5, 2024). Dartmouth basketball team votes to form first union in U.S. college sports. Reuters. Retrieved December 2, 2025, from https://www.reuters.com/sports/basketball/dartmouth-basketball-team-votes-form-first-union-us-college-sports-2024-03-05/.
2 Johnson, R. (August 26, 2024). Can players lose NIL money if they’re injured? Here’s what collectives say. CBS Sports. Retrieved December 2, 2025, from https://www.cbssports.com/college-football/news/can-players-lose-nil-money-if-theyre-injured-heres-what-collectives-say/.
3 University of Oregon School of Law. Termination. Retrieved December 2, 2025, from https://law.uoregon.edu/nil/termination.
4 Graham, M. (September 25, 2024). Livvy Dunne’s NIL dominance in two whopping stats. On SI. Retrieved December 2, 2025, from https://www.si.com/onsi/athlete-lifestyle/business/livvy-dunne-insane-nil-dominance-in-two-whopping-stats.
5 Williams, M. (July 3, 2023). Olivia Dunne divulges largest payday for social media post. Sports Illustrated. Retrieved December 2, 2025, from https://www.si.com/extra-mustard/2023/07/03/olivia-dunne-divulges-largest-payday-social-media-post-lsu.
6 Hart, J. (March 4, 2023). LSU issues statement on academic misconduct after college athlete influencer Olivia Dunne promoted AI essay helper on TikTok. Business Insider. Retrieved December 2, 2025, from https://www.businessinsider.com/lsu-olivia-dunne-statement-after-promoting-ai-essay-2023-3.
7 Nixon Peabody. (December 12, 2023). Title IX complaint against University of Oregon features NIL arguments. Retrieved December 2, 2025, from https://www.nixonpeabody.com/insights/alerts/2023/12/12/title-ix-complaint-against-university-of-oregon-features-nil-arguments.
8 Associated Press. Male athletes lead way in NIL money, according to third-party data. ESPN. (January 27, 2025). Retrieved December 9, 2025 from https://insider.espn.com/college-sports/story/_/id/33160929/male-athletes-lead-way-nil-money-per-data.
9 Associated Press. University of Wisconsin sues University of Miami over claims it induced one of its football players to change teams. (June 21, 2025). Retrieved December 9, 2025 from https://www.cnn.com/2025/06/21/sport/wisconsin-sues-miami-tampering-college-football-spt.
10 ESPN Staff. A $13-million NIL deal gone wrong, a top QB recruit and what happens next. (January 20, 2023). ESPN. Retrieved December 10, 2025 from https://www.espn.com/college-football/story/_/id/35482485/jaden-rashada-faq-top-recruit-nil-deal-florida-football.