Saturday, October 24, 2026

How Schools Are Skirting the New Salary Cap in College Sports

From apparel contracts to outside deals, schools are racing to secure NIL opportunities for their athletes to gain an edge in recruiting above the revenue-sharing cap.

Tennessee quarterback Joey Aguilar (6) during a college football game between Tennessee and Georgia at Neyland Stadium in Knoxville, Tenn., on Sept. 13, 2025.
Brianna Paciorka/Imagn Images
Aug 8, 2026; Canton, OH, USA; Chris Berman moderates the Pro Football Hall of Fame enshrinement at Tom Benson Hall of Fame Stadium. Mandatory Credit: Kirby Lee-Imagn Images
Exclusive

How ESPN Will Use Chris Berman in Its Super Bowl Coverage

Berman has covered 44 straight Super Bowls and watched all 60.
Read Now
September 14, 2026 |

Want more from Front Office Sports
in your search results?

Add Front Office Sports on Google

The House v. NCAA settlement was supposed to create a salary cap in college sports. But athletic departments have already found a workaround.

Starting this year, schools can directly share revenue with their college athletes—capped at $20.5 million. At the same time, the settlement implemented new restrictions on NIL (name, image, and likeness) deals specifically aimed at collectives to prevent “pay-for-play” in disguise. 

Because of the fear that NIL collective deals—previously used as recruiting inducements—wouldn’t pass the new restrictions, athletic departments came up with a new plan.

Athletic departments are now acting as de facto agencies for their players, securing outside deals or incorporating NIL guarantees for players in their own sponsors’ contracts. Some schools have created formal in-house “agencies,” while others are simply relying on athletic department officials to procure deals as part of their day-to-day.

“We can now help our athletes really serve as a marketing agency to go out and source opportunities, whether it’s corporate opportunities, whether it’s local opportunities, whether it’s social media opportunities,” Ohio State athletic director Ross Bjork said on Front Office Sports Today. “That’s going to be the next race.”

The concept of the in-house marketing agency began before the House settlement era. Boise State was an early pioneer, creating one within a year of the NIL era’s commencement.

But the concept didn’t become popular until this year, when schools had to figure out other ways to get a recruiting edge. 

Ohio State, for example, created an entity called Buckeye Sports Group to take charge of revenue-sharing and serve as an in-house marketing agency. The school’s two wildly successful NIL collectives were folded into the new group, which took over collective donations, content subscriptions, and began working with collective board members. The group also tapped the help of multimedia-rights partner Learfield to help facilitate NIL opportunities and group licensing deals. 

Other schools kept their collectives outside the athletic department, but they had them shift from soliciting donations to distribute to players to procuring deals on behalf of athletes.

In this new landscape, not all opportunities are created by in-house agencies. Everyone in the athletic department is pitching in.

In September, Louisville announced that live-entertainment producer Danny Wimmer Presents had guaranteed $1 million worth of NIL deals for athletes to promote its music festivals—two of which take place in Louisville. 

When Danny Wimmer approached the school about supporting the athletic department, athletic director Josh Heird asked for NIL deals rather than a corporate partnership with the athletic department as he may have wanted in the past, Heird tells Front Office Sports. 

“How do we try to create ‘true NIL’ opportunities?” Heird says. “Because it’s going to help our student-athletes; it’s going to help our athletic department as far as above the cap amounts, and presumably provide competitive advantage for us? That’s what we’re trying to do.”

Heird says this is the conversation he’s having with companies across the board: both explaining to them how the post-House landscape works, and explaining why offering player NIL deals might assist the athletic department, even if it doesn’t put money directly into its pockets.

Schools have also begun negotiating NIL components into their most lucrative existing sponsorships: apparel contracts.

On Aug. 13, Tennessee’s athletic department announced it had signed an apparel sponsorship agreement with Adidas, ending a decade-long relationship with Nike. The deal will reportedly allow the Volunteers to rake in $100 million over 10 years. But it’s more than just a traditional apparel contract. It also guarantees “unprecedented” NIL opportunities for athletes across all Tennessee sports. Adidas had committed to offering deals to Tennessee athletes this season, even before its formal apparel partnership had taken place. Then, starting next year, players could join the NIL ambassador network. 

Athletic director Danny White called the deal a “significant advantage” in the new era of college sports.

Less than a month later, Penn State announced its own 10-year deal with Adidas that includes a similar NIL partnership. For this season, Adidas committed to “high-impact NIL agreements and brand marketing campaigns for student-athletes across all 31 sports,” with access to the NIL ambassador program for Penn State athletes starting in 2026.

It’s not that apparel sponsors weren’t involved in NIL before—Under Armour, Nike, and Adidas have all offered endorsement deals with players over the past few years. But the Adidas contracts mark a new trend.

“This is just the start,” Adidas VP of sports marketing in North America Chris McGuire tells FOS. “And I think in the future, again, as legislation and rules change and evolve, that NIL will be a key component to every type of sponsorship relationship.”

Download the FOS App

The business of sports, in your pocket.

QR code to download the app

Scan the QR code to get the app now.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Sep 12, 2026; Baton Rouge, Louisiana, USA; LSU Tigers head coach Lane Kiffin reacts to an intercept by Louisiana Tech Bulldogs during the first half at Tiger Stadium. Mandatory Credit: Stephen Lew-Imagn Images

Oxford Bulking Up Police Presence for Lane Kiffin’s Return

Ole Miss coach Pete Golden asked fans to be rowdy but respectful.

Robert Kraft Confirms He Blocked Macklemore From Gillette Shows

The rapper’s performances in New Jersey featured pro-Palestinian messaging.

Stephen A. Smith: McAfee Has a ‘Different Set of Rules’ at ESPN

Smith signed a nine-figure contract with ESPN last year.
Adam Silver, NBA commissioner, attends the annual Allen and Co. Sun Valley Media and Technology Conference at the Sun Valley Resort in Sun Valley, Idaho, U.S., July 7, 2026.

Clippers Controversy Hangs Over NBA Board of Governors Meeting

Adam Silver is expected to hold a press conference Tuesday.
podcast thumbnail mobile
Front Office Sports Today

10/23/26 – JJ Watt Takes CBS Chair, FIFA Rights Shake-Up, Small-Market World Series

0:00

Featured Today

Oct 4, 2025; Tempe, AZ, USA; General action during the first period of the game between the Arizona State Sun Devils and the Penn State Nittany Lions at Mullett Arena

How Military-Style Workouts in College Sports Get Dangerous

For elite athletes, high-intensity training can be “very appealing.”
September 6, 2026

Is Carolyn Tisch Blodgett the Future Face of Giants Ownership?

Amid changes at top of Giants ownership, eyes are on Tisch Blodgett.
September 4, 2026

Wild Transfer Window Shows How Premier League Towers Over Soccer

Spending in England vastly outstripped the rest of Europe.
September 3, 2026

Teams Are Spending Millions to Build Luxury Locker Rooms

It’s a recruiting pitch, a retention tool, and a seven-figure line item.
September 1, 2026

High School Football Sidelines Are Clogged With Content Creators

Administrators call these amateur newcomers the “pajama paparazzi.”
Ohio State Buckeyes safety Jaylen McClain (8) reacts to a missed interception during the NCAA football game against the Texas Longhorns at Darrell K Royal–Texas Memorial Stadium in Austin, Texas on Sept. 12, 2026. Texas won 24-23.

How the 12-Team CFP Is Treating Ohio State and Oregon Differently

Meanwhile, Oklahoma’s and Oregon’s playoff odds took significant hits.
Sep 11, 2026; Lawrence, Kansas, USA; Missouri Tigers head coach Eli Drinkwitz on the sidelines against the Kansas Jayhawks during the second half of the game at David Booth Kansas Memorial Stadium
September 12, 2026

Missouri Coach Blasts Kansas for ‘Bullcrap’ Rivalry Video

After a controversial X post, Missouri beat Kansas 38–21 in Lawrence.
September 13, 2026

Texas Tops AP Poll As SEC Asserts Early Dominance Over Big Ten

The Longhorns topped the latest poll after their dramatic comeback win.
Sponsored

Drew Weatherford’s Bet on the Youth Sports Economy

Drew Weatherford discusses investing across the youth, college and professional levels.
First at FOS
September 12, 2026

Deion Sanders, Nick Saban Weren’t Paid for Ads Lobbying Congress

The pair participated to promote the Protect College Sports Act.
Sep 10, 2026; Miami Gardens, Florida, USA; Miami Hurricanes running back Javian Mallory (21) carries the ball while defended by Florida A&M Rattlers defensive back Andre Powell Jr. (7) in the third quarter at Hard Rock Stadium. Mandatory Credit: Sam Navarro-Imagn Images
September 11, 2026

Florida A&M Made $760K to Lose by 70 Points to Miami

Miami led the game 77–0 before a shortened fourth quarter.
Nov 8, 2025; Starkville, Mississippi, USA; Georgia Bulldogs head coach Kirby Smart looks on before the game against the Mississippi State Bulldogs at Davis Wade Stadium at Scott Field. Mandatory Credit: Wesley Hale-Imagn Images
September 11, 2026

NIL Got Kirby Smart to Give In on All-White Uniforms

Georgia will debut the look vs. Western Kentucky on Saturday.
September 10, 2026

SEC-LSU Cold War Thaws, but LSU Could Still Face Sanctions

The SEC had been scheduled to vote on LSU’s expulsion.