Court Motion Challenges $20.5 Million Annual Cap on College Athletes' Booster NIL Payments
Plaintiffs' lawyers have filed a motion in U.S. District Court in Northern California to allow third-party NIL deals to exceed the $20.5 million annual cap set by the House Settlement. This move comes amid efforts by President Trump's Saving College Sports Roundtable to reform the NIL system.
english.radio.czS. 5 million yearly cap on money distributed to student athletes from booster organizations, as established under the House Settlement. The motion targets deals involving sports marketing companies like Playfly and Learfield, which facilitate media-rights agreements with athletes.
Com. Jeffrey Kessler, co-lead counsel on the House settlement case, stated that such NIL deals 'are not subject to review by the College Sports Commission' because they are legitimate third parties not directly connected with the schools. Kessler added, 'The House settlement agreement is a negotiated deal among the NCAA, the conferences and class of athletes and approved by the court .
' President Trump appointed the Saving College Sports Roundtable, a commission led by New York Yankees president Randy Levine and Florida Gov. Ron DeSantis, to reform the Name, Image and Likeness (NIL) system in college sports.
Com reported. Randy Levine stated that the roundtable is making progress and there is bipartisan support for legislation reforming NIL. ' He added, 'It shows more than ever that the president and Congress’s leadership is needed now to save college sports.
Com. This development follows the House v. NCAA antitrust case in 2021, which allows student athletes to earn money through sponsorships and endorsements sponsored by schools or affiliated boosters. NIL deals exploded after the 2021 House v.
NCAA case. Colleges compete for top athletes by diverting donor money from academic pursuits through booster clubs, which are school-affiliated organizations allowed to raise money for athlete recruitment.
5 million cap because they work with schools.
Key Facts
Story Timeline
6 events- 2026-04-26
Plaintiffs’ lawyers filed a motion in US District Court in Northern California seeking to allow third-party NIL deals to surpass the $20.5 million cap.
1 sourcenypost.com - Recent (post-2025 inauguration)
President Trump appointed the Saving College Sports Roundtable, led by Randy Levine and Ron DeSantis, to reform the NIL system.
1 sourcenypost.com - 2021
The House v. NCAA antitrust case allowed student athletes to earn money through sponsorships and endorsements sponsored by schools or affiliated boosters.
1 sourcenypost.com - Post-2021
NIL deals exploded after the 2021 House v. NCAA case.
1 sourcenypost.com - Recent
Randy Levine stated that the roundtable is making progress with bipartisan support for NIL reform legislation.
1 sourcenypost.com - Recent
Jeffrey Kessler stated that third-party NIL deals are not subject to review by the College Sports Commission if not from boosters.
1 sourcenypost.com
Potential Impact
- 01
Accelerated financial strain on colleges, particularly smaller ones, due to diverted donor funds and recruitment costs.
- 02
Disadvantage for non-revenue sports and Olympic athlete programs as funds prioritize football and basketball.
- 03
Potential increase in athlete mobility and school competition if third-party deals bypass the cap, leading to higher endorsement values.
- 04
Shift in oversight from courts to Congress and the president if the roundtable's recommendations are adopted.
- 05
Bipartisan legislative push for NIL reform, potentially resulting in new federal laws overriding court decisions.
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