Colorado’s NIL Bill Prepares Schools for Revenue Sharing Era in 2025

Lawmakers in the State of Colorado are positioning themselves at the forefront of a rapidly changing collegiate sports landscape with the introduction of House Bill 1041. This proposed legislation would allow state colleges and universities to directly compensate student-athletes for their name, image, and likeness (NIL). The bill, currently under consideration in the state legislature, builds on Colorado’s existing NIL framework while aligning with the transformative rules expected under the House v. NCAA settlement, set to launch a revenue-sharing era in college athletics as early as July 2025.

House Bill 1041 signals a bold departure from the current system, which restricts NIL payments to third-party organizations, such as booster collectives. Instead, the proposed law empowers universities to pay athletes directly from auxiliary revenue sources like ticket sales, merchandise, and media rights. By eliminating the middleman, Colorado’s lawmakers aim to streamline the NIL process while giving their schools a competitive edge in recruiting top talent—a critical factor as states across the country explore similar reforms.