College Basketball NIL Market Rapidly Increasing

JT Toppin's Return to Texas Tech Comes with Significant NIL Deal

Texas Tech star JT Toppin is back in Lubbock. Texas Tech basketball fans received exciting news this week as star forward JT Toppin announced his return for the 2025-26 season via Instagram. Toppin is widely recognized as one of the top talents in college basketball, making his decision a major boost for the Red Raiders.

A Hefty NIL Package for Toppin

While Toppin's return is a significant win for Texas Tech, it comes with a substantial financial commitment. According to reports from CBS Sports, Toppin is expected to command an estimated $4 million NIL package in his upcoming year with the Red Raiders. This highlights the increasing financial power of top athletes in college sports.  

Texas Tech's NIL Strength 

Texas Tech's ability to secure such a significant NIL deal for Toppin flexes their financial strength in this evolving NIL landscape. The university is known to have considerable NIL resources, evidenced by their #1 ranked football transfer portal class this year. This financial capacity is largely attributed to the founder of their NIL collective, Cody Campbell, who sold his oil and natural gas company Double Eagle to Diamondback Energy for over $4 billion this year.

NIL amounts for star players are increasing a lot due to the impending new rules of revenue sharing. Following the NCAA's House settlement, schools will have the option to directly share a portion of their revenue with student-athletes, with a projected annual cap of approximately $20.5 million per institution. This new framework provides universities with a direct mechanism to compensate athletes, potentially leading to larger and more structured NIL packages compared to previous years, which heavily relied on external collectives and endorsements. This is why athletes like Toppin will be benefitting due to these new NIL rules.

NIL Lawsuit Against Leonard Hamilton and Florida State Update

Fewer Players Pursuing Action 

A Lawsuit alleging broken promises of NIL payments against former Florida State basketball coach Leonard Hamilton appears to evolving. Reports indicate that some of the former players involved have decided not to continue pursuing punitive damages in the case.

Background of the Allegations

Late last year, six former FSU basketball players filed a lawsuit against Hamilton and Florida State University. The players claimed that Coach Hamilton promised them significant NIL payments, totaling $250,000 for each player, supposedly from his business connections.

Specific Players and Claims 

The six players who initially filed the lawsuit were Darin Green Jr., Josh Nickelberry, Primo Spears, Cam’Ron Fletcher, De’Ante Green, and Jalen Warley. Their complaint detailed alleged promises made by Hamilton and included text message exchanges with both the coach and an executive from an FSU NIL collective.

Practice Boycott and Unpaid Funds 

Frustration over the alleged lack of these NIL payments reportedly led to a team-wide boycott of a practice before a game against Duke. The players claimed they never received the promised funds from Hamilton, the university, or any associated parties, despite some transferring to FSU with the expectation of receiving this compensation.

Financial Concerns and Player Departures 

The lawsuit highlighted the players' financial worries related to taxes, rent, and car payments, underscoring the significance of the promised NIL money. It's important to note that none of the six players involved are currently with the Florida State basketball program. Green and Nickelberry have exhausted their eligibility, while the other four players have since transferred to other institutions.

West Virginia's NIL Bills: A Potential NCAA Showdown

Bold Legislation Challenges National Framework 

West Virginia is pushing forward with ambitious NIL legislation that has the potential to create significant conflict with the NCAA and its proposed settlement. Two bills moving through the state legislature aim to give West Virginia universities more control over athlete compensation, potentially bypassing key aspects of the national agreement.

State Control Over NIL and Revenue Sharing 

House Bills 2576 and 2595 propose a system where West Virginia universities, like West Virginia University and Marshall University, could manage and directly facilitate NIL and revenue-sharing payments. This would be done through new nonprofit corporations established and controlled by the schools, specifically designed to be outside the NCAA's direct regulatory reach.

Ignoring National Settlement Terms 

A key point of contention is that West Virginia's proposed legislation appears to disregard critical components of the House v. NCAA settlement. This includes the $20.5 million revenue-sharing cap and the proposed independent clearinghouse for vetting NIL deals. Furthermore, one of the bills would explicitly prohibit athletic associations from penalizing schools or athletes for non-compliance with national rules.

NCAA Response and Potential Consequences

U.S. District Judge Claudia Wilken, overseeing the fairness hearing for the NCAA settlement, has already suggested that the NCAA could "kick out" schools that refuse to comply with the agreed-upon terms. If West Virginia's legislation becomes law and the NCAA follows this advice, it could have severe consequences for West Virginia universities, potentially impacting their recruiting, media revenue, and access to NCAA championships.

Broader Implications for College Sports 

West Virginia's actions could set a precedent, potentially inspiring other states to enact similar legislation. If a significant number of states follow this path, it could lead to a fragmentation of the national college sports model. This could force schools to consider forming a new athletic governing body outside the NCAA or compel the NCAA to relinquish its authority over athlete compensation rules. The situation highlights the significant challenges in establishing a unified national framework for NIL and revenue sharing.