🏅High school NIL is booming. Here’s what could come next.

Hi everyone,

In today’s newsletter, we’re looking at high school NIL and the ways it’s broadened since its inception — plus the pros and cons of the high school game becoming more like the college game.

— Joan

High school NIL is booming. Here’s what could come next.

by Talia Smith

When NIL first launched, it was about college athletes cashing in on their name, image and likeness —  appearing in ads for local establishments and in some cases signing with national brands. Some athletes inked deals with niche products and hyperlocal companies, while others reached a more national platform, signing deals with companies like Dunkin’ Donuts and Freddy's Frozen Custard & Steakburgers — or even, in the case of former Colorado quarterback Shedeur Sanders, Nike.

But in just a few short years, NIL has expanded in a big way, transcending college sports. In 39 states and the District of Columbia, high school athletes are now permitted to sign NIL deals.

This shift hasn’t just opened doors; it’s raised eyebrows. Suddenly, the sidelines of Friday night lights aren’t just for coaches and parents — they’re for brands, reps and NIL firms. The playbook for high school sports is starting to look a lot more like the college model — and that process might accelerate even further thanks to a lawsuit filed recently in California. 

In June, a former high school football player and track and field athlete, Dominik Calhoun, filed a class-action lawsuit against the California Interscholastic Federation (CIF). Calhoun v. CIF alleges that restrictions on transfers and NIL money for high school athletes violates antitrust law and disenfranchises students seeking better educational opportunities. It may upend how NIL works for high school athletes.

As things stand, CIF rules do not allow schools to share revenue with athletes, nor can booster clubs form collectives. Calhoun, who’s about to begin his freshman year on the Boise State football team, argues in the complaint that the rules barred him from being compensated for the economic value he brought to his high school. According to the suit, CIF rules also prevent NIL deals tied to school or team brands and penalize transfers, even when students move for safety, mental health or academic reasons. 

“Had these transfer rules been more flexible during Mr. Calhoun’s high school eligibility, he would have undoubtedly explored all available opportunities. … Unfortunately for Mr. Calhoun, he will never know what those opportunities would have been,” Salahi PC, the law firm that filed the suit, wrote in a statement. The firm’s statement continued: “The risk of losing eligibility becomes a decisive barrier … undermining [athletes’] agency to shape their own futures.” 

Translation: The system didn’t just cost Calhoun and other California high school athletes deals — it may have cost them a better path forward. 

Depending on its outcome, Calhoun v. CIF could give high school athletes similar autonomy and agency as those competing at the college level. And though that flexibility might be helpful to some, it might not be universally beneficial. 

Roger Noll, a longtime expert on sports labor and competition, flagged one concern with the expansion of high school NIL: exploitative parents and reps. “Parents normally play a dominant role in employing their children,” he wrote in an email interview, “with the danger that parents will exploit their children financially (e.g., the Britney Spears case) or attract attention to themselves (the Gypsy Rose Lee case) or simply be incompetent career managers.” 

Even with the right support system, Noll said, kids can still be taken advantage of. “Even athletes who do not give up on school … can be done in by a crooked agent,” he explained. And, he added, “early professionalization … risks substituting time away from education.” 

Contracts are another minefield. NIL deals are fraught with auto-renewals, high commissions and opaque clauses. Noll noted that the landscape mirrors the early days of the entertainment industry, citing Shirley Temple as an example. “This was an especially big problem in the old studio system days in Hollywood,” he said. 

This isn’t hypothetical. Many high school athletes sign low-paying deals, while their parents or reps earn disproportionately more — or worse, suffer legal fallout with no compensation in return. Additional reporting shows that NIL deals skew toward privileged and already-connected athletes, leaving marginalized kids out of the mix — even when they face the same legal risks. 

Despite those downsides, there are advantages to high school NIL — though perhaps only for a few elite athletes each year. 

For instance, Adidas recently signed multiple high school basketball prospects from the class of 2026 and class of 2027 to NIL deals, showing how brands are targeting athletes years ahead of campus time. 

Still, critics warn: If only a narrow slice of athletes cash in, NIL isn’t leveling anything; it’s amplifying inequality. Noll agreed that the system is inequitable — but he also sees real upside for families without institutional resources. “NIL representation can offer valuable support,” he explained, adding: “Some families argue … it helps athletes better understand their market value.” 

Regardless of who’s profiting, though, high school NIL seems here to stay, and with a vast majority of states permitting it, it’s fair to wonder: Is federal standardization on the horizon? 

Noll, for one, is skeptical. “[It] depends on the state, but generally I do not see a major national problem here,” he said, warning that uniform laws could protect exploiters — not victims. “We should show that states are leaving big unfilled holes … or even passing laws that protect the crooks from the victims,” he added. Noll said he suspects that as more states get involved, the landscape will improve, “causing a natural sorting process.” 

Still, Calhoun v. CIF might accelerate that shift. It could spur other states, lawmakers and associations to rethink who’s profiting — and who’s being punished. It could also lead high school sports to look a lot more like college — and the pros. 

Talia Smith is an investigative journalist whose work has been featured in Business Insider, the New York Times, Harper's Bazaar, Elle and more. To learn more about her work, visit her website.