Terms & Definitions

Range of Compensation

Range of compensation is the second test applied by NIL Go. It asks whether the money in a deal matches what similarly situated people would be paid for comparable work. A deal can have a legitimate business purpose and still fail because the price is far above market. Since April 2026, this test applies at $2,500 or more for enrolled Division I athletes, deals between $600 and $2,499 still clear the valid business purpose check but no longer automatically get the full range-of-compensation review. Prospective student-athletes who haven’t enrolled yet are still reviewed at the original $600 threshold.

Q. How is the range determined?

Through a valuation model built by Deloitte, drawing on comparable deals, the athlete’s audience and market, and the actual deliverables in the agreement.

Q. Why does this test exist?

Without a price check, a two-million-dollar payment for a single social post would be an easy way to move money to an athlete outside the revenue-sharing cap.

Q. Is it a hard ceiling?

No. It is a range, and deals can be revised, resubmitted or contested. In practice it functions as a limit on clearly inflated deals rather than a fixed price list.

Q. What about athletes with unusually high market value?

The model accounts for reach and market, so genuinely high-value athletes support higher figures. The test is aimed at compensation that cannot be explained by the work being done.

Q. Is it controversial?

Yes, both on methodology and on the broader question of whether a private body should be setting pay ranges for athletes. It is among the most disputed parts of the system.

Addie VanderWeide

Marketing