Historically, the National Collegiate Athletic Association (NCAA) prohibited direct compensation to athletes under the principle of amateurism, limiting benefits to scholarships and modest stipends. In National Collegiate Athletic Association v. Alston (2021), the U.S. Supreme Court unanimously ruled against NCAA limits on education‑related benefits.

NCAA adopted an interim NIL policy permitting athletes nationwide to engage in endorsement deals, sponsorships, and other forms of compensation.

The NIL era has since expanded rapidly, with collectives, private companies, and universities playing major roles in facilitating athlete deals. High‑school athletes in several states have also become eligible for NIL agreements