
NIL
Top U.S. Legal Issues For Companies Investing In Esports And Gaming Technology

The esports and gaming technology industry is experiencing rapid
growth, with global revenue expected to surpass $3 billion by 2025.
As companies rush to invest in this lucrative sector, they must
navigate a complex legal landscape that includes intellectual
property protection, contract law, regulatory compliance, and more.
Below are the most critical legal issues facing businesses
investing in esports and gaming technology in the U.S.
1. Intellectual Property (IP) Protection
Copyright and Trademarks
Video games and esports involve multiple layers of intellectual
property, including game content, character designs, logos, and
branding elements. Companies investing in the industry must ensure
they own or properly license these assets.
- Game developers and publishers: Must protect
their original game content through copyright laws. - Esports teams and organizations: Need to
secure trademarks for their team names, logos, and other branding
elements. - Streaming platforms and content creators: Must
ensure that they have proper rights to broadcast gameplay and use
in-game assets.
Licensing Agreements
Many companies invest in gaming technology through partnerships
with developers or esports teams. Licensing agreements define how
intellectual property can be used and prevent costly disputes.
Companies should establish clear licensing arrangements to avoid
infringement claims.
Case Example: Riot Games vs. Moonton
Riot Games, the developer of League of Legends, sued Moonton for
copyright infringement over its mobile game Mobile Legends,
claiming it copied substantial elements from League of Legends. The
case highlights the importance of protecting game assets from
unauthorized use and ensuring licensing agreements are properly
structured. Both parties reached a global settlement in April 2024,
with Riot Games formally withdrawing all lawsuits.
2. Contract and Employment Law
Player and Team Contracts
Esports teams sign players, coaches, and managers to contracts
that outline salary, sponsorship obligations, and behavioral
expectations. These agreements must comply with U.S. employment and
labor laws to avoid disputes over unfair terms or unlawful
termination.
- Non-compete clauses: Courts may scrutinize
restrictions on where players can compete after leaving a
team. - Sponsorship agreements: Terms must be clear on
exclusivity, duration, and compensation. - Player unionization: Discussions around
collective bargaining for esports players are growing, raising
questions about employment classification.
Case Example: Tfue vs. FaZe Clan
Professional gamer Turner “Tfue” Tenney sued FaZe
Clan, claiming his contract was “oppressive” and violated
California labor laws by restricting his ability to earn
sponsorship deals outside the organization. The lawsuit shed light
on the importance of fair employment agreements in the esports
industry. The case was settled in August 2020.
Endorsement and Sponsorship Deals
Esports athletes, streamers, and influencers frequently enter
into sponsorship agreements with brands. These deals must comply
with Federal Trade Commission (FTC) guidelines, including clear
disclosures of sponsored content to avoid deceptive marketing
practices.
Case Example: FTC vs. CSGOLotto
The FTC cracked down on CSGOLotto, an esports gambling website,
for failing to disclose that influencers promoting the site were
actually its owners. This case underscores the importance of proper
sponsorship disclosures and compliance with advertising laws.
3. Regulatory Compliance and Gambling Laws
Gambling and Betting Regulations
Many esports tournaments involve prize pools, and some allow
betting on matches. Companies investing in esports gambling
platforms must comply with state and federal laws governing online
betting.
- Unlawful Internet Gambling Enforcement Act
(UIGEA): Restricts online gambling practices in the
U.S. - Loot boxes: Regulators are debating whether
randomized in-game purchases constitute gambling, which could lead
to future restrictions. - Fantasy esports leagues: Must navigate legal
challenges similar to those faced by traditional fantasy sports
platforms.
Case Example: Electronic Arts (EA) and Loot
Boxes
Electronic Arts has faced multiple lawsuits over loot boxes in
FIFA Ultimate Team, with claims that these in-game purchases
constitute illegal gambling. Some U.S. states are considering
regulations that would restrict or ban loot boxes.
Consumer Protection and Data Privacy
Gaming companies collect vast amounts of player data, requiring
strict adherence to privacy laws, including:
- Children’s Online Privacy Protection Act
(COPPA): Protects data collected from users under 13. - California Consumer Privacy Act (CCPA):
Provides California residents with data access and deletion
rights. - General Data Protection Regulation (GDPR)
compliance: While a European regulation, U.S. companies
with international users must often comply.
Case Example: TikTok’s COPPA Violation
Although not specific to gaming, TikTok was fined by the FTC for
violating COPPA by collecting data from children under 13 without
parental consent. This serves as a warning to gaming companies that
collect data from minors.
4. Antitrust and Competition Law
As the gaming industry consolidates, major acquisitions, such as
Microsoft’s purchase of Activision Blizzard, have raised
antitrust concerns. The Federal Trade Commission (FTC) and
Department of Justice (DOJ) closely monitor large transactions that
could stifle competition.
Companies should evaluate:
- Market dominance concerns: Avoiding
monopolistic behaviors that could trigger legal scrutiny. - Exclusive agreements: Ensuring that
partnerships and exclusivity deals comply with competition
laws. - Mergers and acquisitions: Obtaining regulatory
approval for significant industry consolidations.
Case Example: FTC vs. Microsoft-Activision
Merger
The FTC challenged Microsoft’s acquisition of Activision
Blizzard over concerns that it would reduce competition in the
gaming industry. The case exemplifies the legal complexities
surrounding major gaming mergers and acquisitions. The merger was
ultimately approved and completed in October 2023, with the
FTC’s appeals being rejected as recently as May 2025.
5. Cybersecurity and Online Safety
Gaming platforms and esports organizations face increasingly
sophisticated cyber threats, requiring robust security measures and
compliance with evolving regulatory frameworks. The intersection of
cybersecurity law, data protection, and gaming presents complex
challenges that have intensified significantly in 2024-2025.
The gaming industry faced significant cybersecurity challenges
in 2024, including major breaches at Ubisoft where cybercriminals
accessed sensitive internal systems and leaked employee credentials
and game files. Microsoft’s Xbox Live network experienced
multiple DDoS attacks causing service outages for millions of
users, highlighting vulnerabilities in online gaming
infrastructure.
Cyberattacks cost gaming companies millions of dollars annually
through immediate recovery costs, long-term financial consequences,
lost revenue, legal fees, and significant reputation damage that
leads to consumer trust erosion.
- Federal and state data breach notification
laws: Companies must inform users of data breaches in a
timely manner. All 50 U.S. states plus Washington D.C. and three
federal territories have data breach notification laws, and the SEC
requires public companies to report material cybersecurity
incidents in Form 8-K within four business days. New SEC rules
effective August 2024 require registered investment advisers,
transfer agents, and broker-dealers to notify customers within 30
days if their information may have been stolen. - State-specific gaming cybersecurity laws:
Nevada and Massachusetts recently passed laws with specific data
security requirements for gaming operators and licensees,
reflecting targeted regulatory attention to the gaming sector’s
unique risks. - Online harassment and moderation policies: The
FTC’s updated COPPA rule, finalized in January 2025,
significantly strengthens cybersecurity requirements for platforms
serving children, including mandatory opt-in consent for targeted
advertising, strict data retention limits, and enhanced
transparency requirements for Safe Harbor programs. - Consumer Financial Protection Bureau (CFPB):
The CFPB has issued guidance stating that insufficient data
protection or information security violates the Consumer Financial
Protection Act’s prohibition on unfair acts or practices.
Gaming companies must avoid practices like failing to patch known
vulnerabilities or lacking procedures to prevent unauthorized
account access. - Mandatory security measures: Various federal
and state cybersecurity laws require organizations to take specific
security measures including implementation of reasonable security
procedures, data encryption requirements, and written security
program. - Critical infrastructure: The federal
government has issued sector-specific guidance for critical
infrastructure operators, with detailed statutory and regulatory
requirements for various sectors that may apply to large gaming
platforms.
In terms of regulatory trends, state regulators in New York,
Texas, and California are expected to intensify privacy and
cybersecurity enforcement in 2025, leveraging newly enacted state
laws and existing UDAP statutes with greater punitive focus than
federal enforcement. Additionally, AI is increasingly being used in
gaming for safer gambling through behavior tracking, enhanced
security measures, and compliance monitoring, while also raising
new regulatory considerations.
Case Example: Twitch Hate Raids
Twitch has faced lawsuits over inadequate moderation, as
streamers have been targeted by “hate raids,” where
malicious actors flood their streams with hateful content. The case
highlights the need for strong online safety policies in esports
and gaming.
6. Other Recent Developments
The gaming and esports industry has experienced significant
regulatory changes in 2024-2025, with increased government
attention to consumer protection, children’s safety, and fair
business practices. These developments reflect the industry’s
growing mainstream recognition and corresponding regulatory
scrutiny.
Major FTC Enforcement Actions
Genshin Impact Loot Box Settlement: In January
2025, the FTC secured a landmark $20 million settlement with
HoYoverse (Cognosphere) over Genshin Impact, marking a significant
expansion of regulatory oversight into loot box mechanics. The
settlement included several groundbreaking elements:
- Novel Legal Theory: The FTC argued that
selling loot boxes to children and teenagers without verifiable
parental consent constitutes an “unfair and deceptive trade
practice” under Section 5 of the FTC Act. - Age Restrictions: Companies must block
children under 16 from making in-game purchases without parental
consent. - COPPA Expansion: The FTC broadly interpreted
Genshin Impact as “child-directed” despite its “T
for Teen” ESRB rating, based on content analysis and
advertising practices targeting children.
Implications for Industry This settlement
creates precedent for state attorneys general and private class
action litigants to file lawsuits under state unfair business
practices statutes, significantly increasing litigation risk for
games with loot box mechanics appealing to minors.
Updated COPPA Rule (2025)
The FTC finalized significant updates to the Children’s
Online Privacy Protection Rule in January 2025, the first major
revision since 2013. Key changes include:
Enhanced Consent Requirements
- Mandatory opt-in parental consent for targeted advertising and
third-party data disclosures - Separate consent requirements for different data uses beyond
basic service provision
Data Minimization and Retention
- Companies can only retain children’s personal information
as long as reasonably necessary for specific purposes - Explicit prohibition on indefinite data retention
Increased Transparency
- COPPA Safe Harbor programs must publicly disclose membership
lists - Enhanced reporting requirements to the FTC for self-regulatory
programs
FTC Workshop on Child Exploitation
The FTC has scheduled a major workshop for June 4, 2025, titled
“The Attention Economy: How Big Tech Firms Exploit Children
and Hurt Families,” indicating continued regulatory focus on
gaming platforms’ impact on minors.
7. Immigration and Visa Issues
Esports relies heavily on international talent, and securing
proper visas for players and staff remains a critical and evolving
challenge. The U.S. offers several visa pathways for esports
professionals, but navigating the immigration system requires
careful planning and legal expertise.
- P-1A visa classification: Since 2013, when
USCIS first recognized an esports player as an athlete and granted
Danny “Shiphtur” Le a P-1A visa for League of Legends
competition, this classification has become the primary pathway for
internationally recognized esports athletes. The P-1A visa requires
evidence of international recognition at a high level of
achievement; participation in competitions with distinguished
reputations; and substantial skill recognition in more than one
country. P-1A visas are valid for up to 5 years for individuals,
with extensions possible up to a total of 10 years. Essential
support personnel including coaches, trainers, team officials, and
referees are also eligible for P-1 classification. - O-1 visa for extraordinary ability: The O-1A
visa serves as an alternative for esports professionals with
significant achievements, valid for up to three years and
extendable in one-year increments. This classification doesn’t
distinguish between individual and team events and may be more
suitable for content creators and streamers with extraordinary
abilities. - B-1/B-2 visitor visas: Esports athletes
training or competing without receiving payments may qualify for
B-1/B-2 visitor visas, particularly those from visa waiver program
countries. This option is suitable for short-term training, unpaid
tournaments, and amateur competitions. - Challenges in visa processing: The P-1 success
rate varies significantly by game, with some esports athletes
facing denials due to inconsistent interpretations of what
constitutes a “legitimate sport.” Recent cases, including
Moist Esports’ legal battle with U.S. immigration over B-1 visa
denials, highlight ongoing procedural challenges and potential
misinterpretation of eligibility criteria. - 2025 Olympic Esports: The introduction of
Olympic Esports Games in 2025 is expected to create new
opportunities for esports athletes, potentially strengthening their
cases for P-1A and O-1A visas through increased international
recognition and legitimacy. - Permanent Residency Options: Qualified esports
athletes may pursue EB-1A “green cards” for permanent
residency if they can fulfill extraordinary ability requirements,
providing long-term stability for top performers. - Best Practices for Companies:Companies should
begin visa applications 3-6 months before needed travel
dates. They should also gather extensive evidence
of international recognition, tournament results, and media
coverage. Companies may consider developing backup plans using
different visa classifications. Companies may also find it prudent
to consider visa needs for coaches, analysts, and other essential
personnel (e.g., P-1S classification).Finally, companies should
monitor ongoing developments in esports recognition and potential
legislative changes that could streamline the immigration process
for gaming professionals.
Case Example: Visa Denials for The
International
Several Dota 2 players were denied visas to compete in The
International, a major esports tournament, due to confusion over
esports classifications. This case demonstrates the ongoing
challenges in securing visas for competitive gaming
professionals.
8. Compliance Recommendations
Immediate Actions for Gaming Companies
- Review and update COPPA compliance programs in light of 2025
rule changes - Assess loot box mechanics for potential unfair practice
exposure - Implement enhanced parental consent mechanisms for users under
16 - Develop transparent odds disclosure and pricing
information - Monitor state-specific gaming tax and regulatory changes
Strategic Considerations
- Consider federal lobbying efforts as sports betting regulation
discussion continues - Prepare for increased state-level enforcement activity
- Evaluate international expansion opportunities in evolving
regulatory environments - Invest in AI-powered compliance and monitoring systems
- Develop comprehensive children’s safety programs beyond
minimum legal requirements
These regulatory developments reflect the gaming industry’s
transition from niche entertainment to mainstream regulated sector,
requiring companies to invest significantly in legal compliance and
consumer protection measures.
Conclusion
Investing in esports and gaming technology offers tremendous
opportunities, but companies must navigate a complex legal
environment to mitigate risks. From intellectual property
protection and player contracts to gambling regulations and
cybersecurity concerns, staying compliant with U.S. laws is
essential for success. As the industry evolves, investors and
businesses must remain vigilant and proactive in addressing these
legal challenges to sustain long-term growth.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
NIL
Ty Simpson’s NFL Future Isn’t Locked In, And the NIL Numbers Are Getting Wild
Ty Simpson has made his intention to enter the NFL Draft known, but that decision may not be as final as it once appeared.
As the clock winds down toward Wednesday’s official NFL Draft declaration deadline, Simpson’s name is still very much circulating in college football circles. According to sources familiar with the situation, multiple SEC football programs are continuing to push hard behind the scenes, hoping to convince the Alabama quarterback to return to the college game for the 2026 season. Even after announcing his draft intentions, Simpson has reportedly remained the subject of aggressive NIL pursuit through third-party channels
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What is clear, however, is the money involved.
One program has reportedly put a package on the table that could reach as high as $6.5 million for Simpson to suit up in 2026. Beyond that, multiple SEC schools, at least three, per AL.com, have floated offers north of $4 million, with incentives that could push those totals even higher.
That level of interest isn’t random. I
t’s a direct reflection of the current quarterback landscape heading into 2026.
Elite quarterbacks are scarce.
The demand is massive.
And the pressure to compete for a College Football Playoff spot has never been higher.
As sports attorney Darren Heitner explained, the market dynamics are doing exactly what markets do when supply runs thin:
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“Several teams chasing a shrinking pool of elite quarterbacks, combined with the pressure to field a CFP contender, could drive up the price for certain players who have yet to transfer and/or are considering the NFL Draft and are seen as transformative,” Heitner said. “It’s basic economics where leverage meets scarcity.”
That leverage belongs to Simpson right now, and it’s rare.
It’s the kind of leverage only a handful of quarterbacks ever experience, where every decision reshapes not just their future, but the plans of entire programs and front offices. NFL scouts are evaluating long-term upside and readiness. NIL collectives are weighing risk versus reward. College coaches are staring at their quarterback rooms, knowing one elite decision could define, or derail, their 2026 season.
Everyone is pulling on the same thread, trying to see which direction Simpson will go.
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And until that deadline hits, nothing is final.
Nothing is settled.
Every option remains on the table.
Whether Simpson ultimately stays in the NFL Draft or sends shockwaves through college football by choosing to return for another season, one thing is crystal clear: the quarterback market has reached unprecedented territory.
Experience matters.
Leadership matters.
And proven production matters more than ever.
And right now, Alabama Football’s own Ty Simpson sits at the center of it all, a reminder that in today’s game, elite quarterbacks don’t just lead offenses.
They set markets.
NIL
So what are schools spending money on now?
Good morning, and thanks for spending part of your day with Extra Points.
I’m headed to Washington, D.C. (okay fiiiine, Maryland), tomorrow for the NCAA convention. Kyle Rowland of NIL Wire and I will be around until Thursday evening, and we’d love to say hello and chat! If you’d like to meet up, shoot me an email. We are also hosting a happy hour with College Sports Solutions at 8 p.m. on Wednesday at the Belvedere Lobby Bar. No RSVP is required, so feel free to join us for some beverages and off-the-record conversations.
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Since I’m flying Tuesday morning and will be out and about, I figured today would be a good day to open the ol’ mailbag and answer your questions. As always, mailbag questions are accepted on a rolling basis via email, Bluesky, texting, etc.

Some NCAA-sponsored sports adding plenty of new teams at the moment include beach volleyball, STUNT, women’s wrestling and lacrosse. These sports don’t typically require as much in the way of startup costs (you don’t need to build a new facility for a women’s wrestling program, after all), have growing high school and club participation levels and can provide a lower-cost way for schools to comply with Title IX sport sponsorship requirements.
Usually, if a school is adding sports, it’s because it is more focused on enrollment-related goals and/or Title IX/conference sport sponsorship requirements, rather than competitive excellence or ticket revenue generation. So sports that don’t require lots of supporting infrastructure and have access to enough recruits will always be attractive. That’s also why it is generally harder to add sports like hockey or baseball, since those tend to require more expensive infrastructure supports.
Across the country, and especially at the small school level, you also sometimes see growth in sport sponsorship that exists completely outside the NCAA. Examples of those sports include rugby, esports, ultimate frisbee and women’s flag football. Some of these may eventually fall under the purview of the NCAA … and some may not!
Speaking of spending money, reader Domo asks

Well … I think that depends on how you define “cutting back.”
It’s true that in Ye Olden Times (i.e., before 2020), it was common for schools to spend money on gold-plating locker rooms, practice facilities, meeting rooms and stadiums, all in the hope of improving recruiting outcomes. If you couldn’t directly give cash to athletes, the thinking was, you could woo them with sleep pods and podcasting studios and Big Buck Hunter arcade cabinets.
But if you want to play Big Buck Hunter, you don’t need to go to a school with a machine in the locker room. You don’t even need to go to Dave and Busters. You can just buy a machine yourself, thanks to cash. And schools, be it via officially sanctioned House payments or whatever we’re pretending marketing deals are, can now give athletes that cash directly.
I’ve heard of a few Power 4 programs that have either postponed or scaled back previously planned facility investments that would fall under this category so they can spend that money directly paying athletes (as well as other stuff). Personally, I think that’s a better investment anyway.
But not every facility investment is “turning the film room into a go-kart track.” Schools also spend money on facilities to do mundane stuff like “keep stadiums built in 1927 at least kinda up to modern building codes” or “add Wi-Fi” or “replace bleachers with actual chairs.”
In fact, because of this crushing need to grow revenue at every level, many programs are looking at spending more on facilities … to help their stadiums better monetize their audience. That means more luxury boxes, more high-end concessions, more bathrooms (so you can serve more booze), more parking and more experiences. Conspicuously absent from that list, of course, is more seating. Usually, capacity is getting smaller, not larger.
So I wouldn’t look for facility improvements or spending to bottom out in the near future. Schools are just going to spend on different things. The driving question at most programs right now is “how can we drive more revenue from our existing fans, corporate partners and real estate footprint?” … and the answer sometimes requires building more stuff.

Sure, I think that could happen. I’ve talked to some mid-major athletic directors and coaches who would explicitly prefer for that to happen (as a way for their schools to get some sort of long-term benefit for developing high school players who won’t stay), and I understand why lawyers, agents and reporters occasionally propose it.
I think there are two related challenges to implementing this system. One is the College Sports Commission. We’re seven months out from House, and nobody has gotten in trouble for breaking any of the rev-share or “third party NIL” rules. There have been guideline updates, and most everybody is making some sort of effort to at least partially comply, but there haven’t been any actual penalties.
Without some sort of regulatory system that is actually enforced, I don’t think a transfer fee system can ever actually work … since who will be in charge to actually make sure those fees are properly paid? Can state courts be trusted to enforce player contracts with schools? Can they enforce those contracts quickly enough? How will transfer fees be permitted to be used? Will they be taxable income?
Even if the CSC (or something else) gets patched up, I’m not certain a fee system can work at scale without either employment status or some sort of federal exemption that provides clarity.
But those are the same challenges to nearly every other sort of reform effort to player movement and compensation. I don’t think that’s unique to transfer fees.
A better way to trade Nvidia

Nvidia has already delivered a staggering 80% gain year-over-year, building a $4.35 trillion empire. But here’s the million-dollar question: Where does Nvidia go from here?
Our advanced A.I. models are painting a different picture for the immediate future.
Reader Sheep Launcher asks:

Under the pre-2020 rule set, I would typically tell people there were reasons why sleeping giants were sleeping … and it’s uncommon for them to wake up. Institutions that appeared to have favorable demographics or resources, upon further inspection, often didn’t. You will not convince me that Maryland football, for example, is just waiting to finally become an elite program, no matter how many good athletes play at DeMatha.
But in the post-NIL, post-portal and post-rev share world, perhaps previous assumptions are worth revisiting.
If we want to use Sheep Launcher’s definition (a school that is reporting a lot of revenue but not as much elite success), there might be a few candidates.
I pulled up the FY24 top programs in royalties, licensing, advertisement and sponsorships revenue from the Extra Points Library. This might be a more useful proxy for revenue generation than total revenue, since isolating sponsorship money removes stuff like student fees, institutional support and “just having a huge stadium” from the picture.
You can probably predict the top teams: Texas, Michigan, Ohio State, Texas A&M, Florida State, etc. Surprisingly high is Louisville (sixth!), Arizona State (15th) and Nebraska (17th). If you sort by ticket revenue, there are a few other programs surprisingly high, like Arkansas (5th), Colorado (17th), Louisville (20th).
If I had to pick a program that was underachieving relative to total earned athletic revenues over the past few years, my answer would probably be Texas A&M, Nebraska or Washington. If I had to pick a program I think could become a substantially more successful department in the future, just based on revenues right now … I’d go with Arizona State.
I’m open to other suggestions, though. Leave ’em in the comments..
Let’s get out of here on this one:

Boy, this is a tough one, because I don’t think most of the other great college football turnaround stories were that sudden.
Take Northwestern, for example. The football team was absolute garbage from the late 1960s to early 1990s. In 1995, it made the Rose Bowl under Gary Barnett … but that was in his fourth season. The Wildcats went 3-8, 2-9 and 3-7-1 before exploding to a 10-2 record.
The faster Northwestern turnaround story was back in the dang 1930s. When Pappy Waldorf took over for Dick Hanley in 1935, the Wildcats went 4-3-1. The next season? They went 7-1 and held the No. 1 spot in the AP poll for three weeks.
Kansas State stunk for a few years before Bill Snyder broke through in 1993. Frank Beamer was bad or average for several years at Virginia Tech before the Hokies won nine games in 1993. Barry Alvarez had three losing seasons before making the Rose Bowl at Wisconsin.
I guess the closest thing we’ve gotten in the modern era was at UCF. In George O’Leary’s last season in 2015, UCF went 0-12. Scott Frost went 6-7 in his first season, and then won a national title* with a 13-0 season in year two.
But even that isn’t what Indiana did. UCF only really sucked for one season, and it took more than one to turn the ship around. This Indiana football story, as far as I know, is in a class of its own.
NIL
College Football’s Expanded Playoff Works. Its Rhythm Doesn’t.

One of the most compelling sales pitches for the new(ish) expanded College Football Playoff, now in its second season of existence, was that it offered more teams chances to prove their worth on the field, rather than in computer formulae or the backrooms of the sport’s halls of power. And with apologies to notable snubs like Notre Dame, that’s mostly been the case. Eighth-seeded Ohio State fought through the strongest opponents of any modern champion last year, while next Monday’s championship game will pit undefeated Indiana — who might have a case as the greatest champ ever — against No. 10 seed Miami, who earned every bit of their way to play the title game at their home stadium.
The price for all of that, however, was adding to the disoriented and discontented feeling that generally pervades the sport right now.
Last week, The Athletic conducted a “vibe-check” poll of college football fans, asking how they felt about the sport. And the results were not exactly pretty. Out of more than 12,000 voters, roughly 56 percent said they did not like the state of college football at the moment because “it’s a mess” — more than two-and-a-half as many respondents who said they liked the sport because “the games are great”:
To be clear, I suspect the majority of that comes from the off-field chaos — from money-chasing coaches like Lane Kiffin to the sense that NIL and the transfer portal have fundamentally turned college football into a completely different sport than it used to be. (A viewpoint with which I sympathize, though the upside has been to allow non-traditional powers inject the sport with much-needed parity.)
But other changes have plunged the sport still deeper into the uncanny valley between its amateur past and an increasingly professionalized future. I wrote last month about the toll the new playoff was taking on the last remaining vestiges of the classic bowl system, and this time a year ago I noted how absurdly long and drawn-out bowl season was in the age of the expanded CFP:
Just like last season, this year’s title game will take place a full 38 days after the beginning of bowl season — and 32 days since the opening game of the playoff itself. For comparison’s sake, pre-playoff bowl season used to span an average of 19.1 days, and the old four-team playoff lasted an average of 10.9 days from beginning to end. Now we will have a gap longer than that simply between Miami and Indiana’s semifinal victories at the end of last week and the title game a week from tonight.
If that (and really the whole thing in general) feels weird and long, it might be because we’re still thinking of things in college terms — when, like everything else in the sport right now, we probably should be putting it in pro terms instead. Here’s a comparison between various different formats (plus March Madness, thrown in for fun) when it comes to their average days until the championship at each round of the playoffs:
The 12-team college playoff has taken slightly longer (31.8 days) to get to the championship than the 14-team NFL playoffs (29.2). But generally, the cadence matches pretty closely, right down to the double-digit day gap between the semifinals and final. (Conversely, it would be a lot to ask football players to turn around within a few days and play the championship, like they do in basketball’s Final Four.)
So, then, what makes the NFL’s postseason rhythm feel so much more normal than college football’s? Well, in addition to the novelty of the college playoff even having this many teams and rounds, the NFL gets to muscle college off of the premium days for playoff scheduling. As Club Sportico’s Eben Novy-Williams notes here, the odd timing of the CFP’s biggest games is mainly a byproduct of the NFL’s dominance of the January calendar.
While college football “owns” Saturdays in the fall, thanks to protections in the 1961 Sports Broadcasting Act, those safeguards expire in mid-December, freeing the NFL to schedule late regular season and playoff games on Saturdays and Sundays. And rather than going head-to-head with the NFL postseason, the College Football Playoff and its TV partners must push marquee games to weekday nights where they can be the biggest event on the schedule. In their current formats, nearly 92 percent of NFL playoff games have been on weekends, while only 9 percent of college playoff games can say the same. (Many more have been on random-feeling days like Tuesday, Wednesday, Thursday and especially Friday.)
That tradeoff reflects a broader paradox for modern college sports: What makes college football special is its tradition and atmosphere — but what makes it valuable is television. And as the NFL continues to broaden its reach across more days of the year and college football continues to expand its playoff bracket, the latter increasingly finds itself chasing whatever visibility it can find, wherever it can be found. As a result, college football is now no longer the biggest thing on the calendar when its games matter the most.
That sensation, as much as any, is what fans can’t quite shake — even as the cream rises to the top more than ever and the football itself can be plenty exciting (when Indiana isn’t blowing the doors off everyone, that is). This no longer feels quite like the sport we used to organize our lives around, and the weirdo cadence of the playoff schedule is one of the most glaring signs of that shift. That doesn’t mean the expanded playoff was a mistake, but it does mean college football is asking us to recalibrate how we experience it: Following a game that looks like a pro league in more and more ways, even as it still demands to be loved like a campus tradition.
Filed under: College Football, Football
NIL
Demond Williams Jr. stays at Washington: Did revenue share contract work as intended?
It was quite a week for the Washington Huskies and quarterback Demond Williams Jr.
In the span of a few days, Williams went from signing a new contract to stay with Washington for the 2026 season to announcing his intention to enter the transfer portal. Two days later, he said he will, in fact, remain with the Huskies “after thoughtful reflection.”
A potential standoff between a star quarterback and a Big Ten program lasted 48 hours, but it still raised pertinent questions about the enforceability of revenue-sharing agreements that have become a predominant feature of major college football. Williams’ new contract with Washington will pay him roughly $4 million, a deal Washington made clear it had no intention of releasing Williams from.
It’s the latest saga in this new-ish era of college sports, one reshaped by legal battles and schools directly signing athletes to contracts. Universities are permitted to distribute up to $20.5 million in revenue sharing to athletes across all sports for the 2025-26 school year, a result of the multi-billion-dollar antitrust settlement agreed to by the NCAA and power conferences.
The disturbance at Washington was sorted out before things fully escalated, but it wasn’t the first contract dispute involving a college athlete, and it won’t be the last. Let’s examine the nuances of these revenue-sharing deals — and potential fallout when others inevitably go pear-shaped.
If a player breaches a revenue-sharing agreement… ?
The prevailing question for many in the industry is whether these revenue-sharing deals are actually worth the paper they’re printed on. If an athlete can break a deal and transfer to another school — presumably for more money or better circumstances — what purpose do these contracts actually serve?
“They’re not worthless,” said lawyer Cal Stein, who advises colleges and athletes on revenue sharing, “but they are very difficult to enforce.”
From a legal perspective, that difficulty is due to the blurred shadowland college football operates in, compensating athletes like pay-for-play employees without lawfully designating them as such. Revenue-sharing contracts are not employment contracts because college athletes are not employees — a designation the NCAA and member schools have resisted because of the added costs and responsibilities that would come with it. Think of these deals more like independent contractor agreements, a distinction that might not mean much to the average person, but is significant in terms of how contracts hold up under legal scrutiny.
“If push comes to shove and a judge takes a look at them, I think it will be interesting what that judge’s determination is,” said lawyer Darren Heitner, who specializes in sports law.
Last Thursday, after The Athletic spoke with him for this article, Heitner announced that he had been retained as legal counsel for Williams.
I have been retained as legal counsel for Demond Williams Jr. We have no public comment at this time. Updates will be provided as appropriate.
— Darren Heitner (@heitner) January 8, 2026
Many universities use a template contract crafted by the conference office, with each one adjusted according to state law and as each school sees fit. Commonly referred to as “licensing agreements” — because they license an athlete’s name, image and likeness rights to a university — it essentially allows a school to market the contracted athlete, often with exclusivity language.
These agreements increasingly feature early termination language as well, also known as buyout clauses, which stipulate dollars an athlete is responsible for redeeming to the university if they breach the contract before the end of the term. It’s usually a specified percentage or amount, such as the amount remaining on the deal once it is broken. This is similar to coaching buyouts, when a coach is hired away and owes money to the previous institution in the form of liquidated damages.
“The biggest difficulty is coming up with damages” — meaning a dollar amount — “that a judge or arbitrator will accept,” Stein said of revenue-sharing buyouts. “How can you quantify the financial harm a university will suffer based on a single player playing somewhere else? I could put on my creative lawyer hat and come up with some ideas, but it would be really hard to prove.”
Regardless, buyouts are becoming more common and can make for more efficient conflict resolution. Multiple power conference general managers tell The Athletic they have either signed players who had buyouts with their previous school or lost players with buyouts to other teams. Most are handled without public incident or additional legal action.
“It’s not prevalent, but it’s happening,” Heitner said. “Typically, there is a negotiation where a school starts at a specific number and then negotiates down, if the player has good counsel.”
One noteworthy wrinkle is that if a player with a buyout transfers to another school, the dollar amount of that buyout counts against the new school’s revenue-sharing cap for that fiscal year. That’s according to enforcement guidelines from the College Sports Commission, which oversees revenue sharing and settlement terms. Typically, a player’s deal with the new school will cover or account for the buyout in some fashion, but the new school is not required to directly pay the buyout fee to the previous school.
The Athletic reported last Friday that Brendan Sorsby, the top transfer quarterback of the current portal window, transferred to Texas Tech with one season remaining on a multi-year revenue-sharing agreement with Cincinnati that includes a $1 million buyout clause. It is not yet clear how Sorsby’s buyout will be resolved.
What happened with Williams and Washington?
We don’t know all the details of Williams’ initial desire to transfer, or of his swift change of heart to return to Washington. The specifics of his deal with the Huskies have not been made public, either. His agent publicly dropped him Thursday for “philosophical differences.” But we can glean that a potential buyout may have factored into the final decision.
Yahoo Sports reported Thursday evening that, if he left Washington, Williams would have owed the Huskies the value of his new contract (roughly $4 million), and if he transferred to a new school, that new school would have to count the $4 million against its own $20.5 million revenue-sharing cap for the 2025-26 fiscal year.
As The Athletic reported, this reflects the buyout language in the Big Ten template contract. Multiple versions of the template, reviewed by The Athletic, state that if a player intends to transfer before the end of an agreement, the athlete would owe the remaining amount left to be paid on the contract, unless the school negotiates a different buyout amount.
It’s possible a legal challenge would have delivered a different verdict or required a lesser buyout figure. But despite Williams retaining a lawyer, this situation is not headed to court. That itself could be a revealing outcome: In the end, the contract may have been strong enough to deter Williams from breaking it. The fact that he signed his deal less than a week prior probably bolstered that sentiment.
“If it’s a clear agreement that was negotiated by both parties, the damages are reasonable, those are generally enforceable,” said lawyer Paia LaPalombara, a former college athletics administrator who advises schools, conferences and athletes on revenue sharing. “A lot of it depends on how things are worded within the agreement.”
Do schools have recourse?
It’s common for revenue-sharing contracts to include language prohibiting a player from entering the transfer portal or another school from using their NIL rights, and there were reports that Williams’ deal with Washington includes similar stipulations. But those only apply if the contract is in good standing. No school will keep paying an athlete who doesn’t play for them, and there’s no contract that can prevent a player from quitting the team.
“You can’t force someone to stay where they are. There is a freedom aspect in an agreement that allows an individual to terminate that agreement,” said LaPalombara. “Can they terminate it for free? No, not necessarily. But you have the right to get out of an agreement. And if there is not language that allows for it, that can be taken to a court.”
If a school believes a contract has been breached and the agreement contains early-termination language, the simplest resolution is to pursue the buyout payment, whether in full or at a negotiated rate.
If a buyout isn’t feasible for whatever reason, a school can take a player to court or arbitration, which is a private form of mediation. Some schools and administrators, however, might be hesitant of how a legal battle with a college athlete will play publicly, even if there is confidence in the legal argument.
“College athletics is a very relational business,” said LaPalombara. “It’s less of a legal challenge and more of an optics challenge for some institutions.”
Though that dynamic could be shifting as well.
How existing disputes were handled
Late last year, the University of Georgia took former defensive end Damon Wilson II to court, with Georgia seeking arbitration and $390,000 in damages, claiming Wilson broke an agreement with Georgia’s NIL collective, a third-party group affiliated with the school, prior to the start of revenue sharing. The arbitration request was filed in the state of Georgia — contract law is traditionally a state matter — and Wilson, who transferred to Missouri for the 2025 season, later filed suit in the state of Missouri against Georgia’s athletic association, seeking his own damages. It’s believed to be the first time a player and school have taken each other to court over an NIL dispute, and both cases are ongoing. Wilson recently re-entered the portal.
Last winter, then-Wisconsin defensive back and South Florida native Xavier Lucas attempted to enter the transfer portal. At the time, Wisconsin claimed that Lucas had a “binding agreement” with the university. The university, with the support of the Big Ten, refused to enter Lucas into the portal as a result, even though it could violate NCAA transfer bylaws.
Lucas later un-enrolled as a student from Wisconsin and enrolled at Miami, where he is playing football for a team that plays for the national title next week. There were no NCAA or eligibility rules preventing Lucas from transferring without utilizing the portal.
“There is nothing improper about a student un-enrolling from one school and enrolling at another,” said Heitner, who represented Lucas. “My inclination is that no judge is going to [prohibit] an athlete from changing schools.”
In June, the University of Wisconsin sued the University of Miami for tortious interference, claiming Miami intentionally interfered with a contract between Wisconsin and Lucas. That case is also ongoing.
The NCAA has its own rules against tampering, but it’s so rampant in college sports that it’s become almost impossible for the NCAA to penalize it. But if a school believes that another school illegally tampered with one of its athletes in an attempt to break a revenue-sharing contract — and the first school believes it can prove that in court — it could attempt the tortious interference route.
What’s next?
Was the potential standoff at Washington a harbinger or an outlier?
It might be the shortest contract dispute we ever see, but the turbulence with Williams could be an indicator of future conflicts. Few would argue that this era of revenue sharing and NIL has done much to stabilize college sports, even if most agree that athletes deserve to be compensated.
But in the meantime, schools and conferences will continue to fortify the language in revenue-sharing contracts, and athletes with the most leverage — or legal horsepower — will continue to test those limits. Until the next saga arrives.
NIL
Ty Simpson reportedly receiving NIL offers to stay in college
Aug 30, 2025; Tallahassee, Florida, USA; Alabama Crimson Tide quarterback Ty Simpson (15) looks to pass the ball against the Florida State Seminoles during the second half at Doak S. Campbell Stadium. Mandatory Credit: Melina Myers-Imagn Images
Ty Simpson is receiving NIL offers to stay in college and transfer to another program ahead of Wednesday’s deadline to declare for the NFL Draft, according to AL.com.
Simpson has reportedly been offered NIL deals worth $4 million and higher with one deal having a chance to be worth $6.5 million, but he has already announced his intentions to enter the 2026 NFL Draft.

The Tennessee native started at quarterback for the Tide in 2025 after waiting three years for an opportunity to earn the role. He lead the Crimson Tide to the second round of the College Football Playoff in his first year as a starter before having to leave the Rose Bowl with an injury.
Simpson finished his first year as the Tide’s starting quarterback with 3,567 passing yards and 28 passing touchdowns.
Carson Beck was the latest high-profile college quarterback to back out of plans to enter the NFL Draft and take his talents to another school with a huge NIL Deal.
No signs point to Simpson doing the same at the moment.
NIL
$2 million QB could redshirt next college football season amid transfer portal entry
Under a week remains in the window for college football players to enter the NCAA transfer portal in the 2026 offseason. The portal officially opened on Jan. 2 and will remain open until Friday.
Over 4,000 players at all levels of college football have decided to enter the transfer portal in the last month. Some of the most notable entries into the portal include Power Four quarterbacks seeking better situations at their next school.
One of the first quarterbacks to enter the NCAA transfer portal in the offseason was former Nebraska signal-caller Dylan Raiola. He will have two seasons of eligibility remaining at his second school.
The 6-foot-3, 230-pounder was recruited to Nebraska by Matt Rhule as a five-star prospect in the Cornhuskers’ 2024 signing class. He passed for 2,819 yards, 13 touchdowns and 11 interceptions and led Nebraska to its first bowl game in eight seasons and first bowl victory since its win over UCLA in the 2015 Foster Farms Bowl.
Raiola broke his fibula against USC, limiting his season to just nine games. He passed for 2,000 yards, 18 touchdowns and six interceptions in his last year with Nebraska. Raiola announced his intent to enter the transfer portal on Dec. 15, 2025.
While many quarterbacks who entered the NCAA transfer portal were either clearly linked to another Power Five program or had already committed to one, Raiola’s portal journey has been much quieter despite his early entry. Some of the prospects for Raiola in 2026 are less conventional than those of most quarterbacks who enter the transfer portal.

Pete Nakos of On3 reported that one possible option for Raiola in 2026 would be to transfer to Oregon and that if Dante Moore returned to the Ducks, Raiola would still transfer there and use a redshirt.
“Sources have indicated that Raiola is in play to join the Oregon roster regardless of Dante Moore’s NFL draft decision,” Nakos said. “If Moore decided to return to school, Raiola could redshirt a season and be in line to start in 2027.”
Moore is currently projecting as the second best quarterback in the 2026 NFL draft behind Fernando Mendoza of Indiana. As it relates to Raiola, Moore also transferred to Oregon and redshirted a season while Dillon Gabriel started for the Ducks in 2024.
If Moore stays at Oregon and Raiola transfers there, it would resemble that of a transfer prior to the portal’s inception. College athletes used to be required to sit out one full season after transferring from one school to another, but that requirement ended after the portal’s launch.
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