The Department of Education issues a memo on student-athlete NIL compensation and Title IX compliance.

On Thursday, the Department of Education's Office for Civil Rights issued guidance on how to comply with federal Title IX rules regarding name, image, and likeness (NIL) pay.

The office issued a nine-page memo outlining guidelines for athletic programs, requiring equal opportunity regardless of sex.

According to the memo, compensation provided by a school to student-athletes for their NIL is classified as "athletic financial assistance" under Title IX, which means it includes any financial aid and other support provided by the school that is linked to a student's athletic participation, not just scholarships or grants.

Despite the fact that funds for a school's athletic program come from private sources, such as private donations and funds raised by booster clubs, the school still has Title IX obligations to ensure that there are no disparities based on sex in its athletic program or any program component. The memo emphasized that a school's responsibility to treat all of its student-athletes in a nondiscriminatory manner remains unchanged, regardless of the source of funding.

"NIL agreements between student-athletes and third parties may result in disparities and trigger Title IX obligations. However, due to the varying nature of these agreements and their continuous evolution, this Fact Sheet does not provide specific guidance on how Title IX's equal athletic opportunity requirements apply to compensation provided for the use of a student athlete's NIL by a third party, including an NIL collective."

Miguel Cardona, the education secretary in President Biden's administration, will be leaving his position once President-elect Trump assumes office on January 20.

The guidance could change during Trump’s administration.

Subscribe to the Planet Chronicle Sports Huddle newsletter for the latest sports coverage on X.