The NIL Boom in Texas: How High School and College Athletes Are Cashing In

In 2021, the NCAA forever changed the landscape of college athletics by allowing athletes to profit from their Name, Image, and Likeness (NIL). The move came in response to mounting legal and public pressure demanding that student-athletes receive compensation for the revenue they generate. While the NIL has been transformative at the collegiate level, its impact is trickling down to Texas high school sports, creating new challenges and opportunities for young athletes.

The Lone Star State is known for being a powerhouse in high school and college athletics. Since 2020, NFL franchises have selected no fewer than 24 Texas Longhorns players in the various drafts. Unsurprisingly, schools and colleges in the state have quickly adapted to this changing environment. As Texas lawmakers shape the state's NIL policies and businesses eagerly capitalize on young talent, high school and college athletes are finding new ways to benefit financially from their abilities.

Texas and the NIL Revolution

Governor Greg Abbott signed Senate Bill 1385 into law in July 2021, making Texas one of the first states to embrace NIL opportunities for college athletes. The legislation allowed college athletes to sign endorsement deals, participate in paid promotional activities, and monetize their social media presence while maintaining eligibility. Signing deals with the best Texas sports betting apps is off the table for the time being because advertising cannot appeal to audiences below the age of 21.

With the state being home to powerhouse programs like the University of Texas and Texas A&M, Governor Abbott's decision to embrace NIL placed Texas universities at the forefront of the movement. However, policies have taken longer to develop at the high school level. The University Interscholastic League (UIL), which governs Texan high school sports, initially prohibited deals for student-athletes. Other states, including California and Florida, allowed their high school athletes to sign NIL deals, which pressured the UIL to reconsider its stance.

High School Athletes Enter the NIL Market

By 2023, some Texas high school students used legal loopholes to secure lucrative NIL deals. Although several ways were possible, signing with brands while playing for club teams rather than their UIL-affiliated high schools was the most common. For example, Jaden Rashada, a four-star quarterback recruit, was set to receive $13.85 million from the Gator Collective if he flipped from the University of Georgia and signed with the University of Florida during National Signing Day in 2024. Although Rashada never played in Texas, his case highlights the financial opportunities available to elite prospects.

Closer to home, Dakorien Moore, a five-star wide receiver from Duncanville, and Denton Guyer's quarterback Jackson Arnold began garnering NIL attention. According to a Sports Illustrated article in January 2025, Moore and Jackson have an approximate NIL value of $600,000 to $700,000. Moore adds to his income by being active on Opendorse, where his fans can request social media posts, shoutouts, public appearances, and autographs for a fee.

Basketball's Trey Johnson, a shooting guard for the Texas Longhorns, is widely expected to be selected in the first four or five picks of the 2025 NBA Draft. Johnson's NIL is estimated to be around $1.3 million due to his star status in the college game.

The Role of Businesses and Donor Collectives

Businesses across the Lone Star State have quickly recognized the marketing potential of NIL deals. Elite-level youngsters are massively marketable, with most boasting tens of thousands of social media followers and each enjoying a legion of loyal fans. Organizations such as the Texas One Fund, a supporter of Texas Longhorns athletes, regularly facilitate deals that benefit players while maintaining compliance with NCAA regulations.

Collectives like the Texas One Fund pool donor money to create NIL opportunities that keep star athletes at their respective schools. Producing a future superstar is big business for high schools and universities, so they must keep hold of the best players. Such collectives have helped Texas universities to remain competitive in recruiting and retaining top talent. However, they have also raised ethical questions about whether NIL has become a legalized form of paying athletes under the premise of marketing deals.

Challenges and Concerns 

The financial benefits of NIL are apparent, but those benefits come with challenges. The potential for exploitation is one of the most significant concerns regarding NIL deals. Many high school athletes lack the financial and legal knowledge to navigate contracts effectively, leaving them vulnerable to predatory agents and misleading deals.

The NIL's impact on recruiting has also sparked controversy. College programs are under pressure to offer attractive and lucrative NIL opportunities to top recruits, which has led to allegations that some schools use NIL as a direct incentive for commitments.

Furthermore, NIL also raises questions about competitive balance. Wealthier schools and universities have always had an advantage in attracting top talent due to their state-of-the-art facilities and coaching. However, establishments with deep pockets or donor collectives backing them can afford to throw money at hot prospects, creating an even more substantial gap between them and smaller schools and universities.

The Future of NIL in Texas

Texas remains at the center of national discussions on athlete compensation. Legislative efforts at state and federal levels could further refine NIL policies, clarifying what deals are allowed and, perhaps more importantly, protective measures for young athletes. UIL may reconsider its NIL stance, permitting Texas high school athletes to pen lucrative deals and enabling them to participate in the market like their peers in other states.

As more Texas athletes secure endorsement and sponsorship deals, the Lone Star State's sports landscape will continue adapting and evolving to the realities of modern-day high school and college athletics. Of course, challenges remain, particularly in protecting youngsters and ensuring high school and college sports remain competitive. Still, nobody can deny that the NIL has paved the way for young athletes to benefit financially from their talents.