On Jan. 23, 2026, the NCAA’s Division I cabinet voted to permit commercial sponsor patches on college athletic uniforms. The decision poses a host of legal considerations for schools and sponsors concerning potential conflicts with student-athlete NIL contracts, schools’ existing apparel agreements, university sponsor restrictions and procurement requirements.
Beginning Aug. 1, 2026, Division I programs across all sports may feature advertisements on player uniforms for the first time. The sponsorship deals are expected to follow the framework already set for on-field and stadium logos, which the NCAA first permitted for regular season games in 2024.
The decision comes as colleges continue to look for new revenue streams following the House Settlement, a landmark settlement approved in a lawsuit brought by former Division I student-athletes against the NCAA and five athletic conferences. The settlement, a two-part agreement that includes nearly $2.8 billion in back pay for former student-athletes and a prospective revenue-sharing model for current and future student-athletes, permits universities to pay up to nearly $21 million directly to student-athletes during the 2025-2026 school year.
Understanding the New Rule
Under the new policy, schools may display: (1) up to two commercial logos on uniforms and apparel; (2) one additional commercial logo on equipment during the preseason and regular season; and (3) one additional commercial logo on uniforms and apparel for conference championship events. Each logo is limited to a maximum size of four-square inches and specific placement guidelines will be determined by the appropriate playing rules subcommittees, oversight committees and sport committees for National Collegiate championship sports to ensure logos do not interfere with officiating.
While the approval of commercial logos on collegiate uniforms does not currently extend to NCAA championships — including high-profile events such as March Madness, in which the NCAA retains control over its corporate partnerships — the cabinet noted its support for exploring additional policies that would allow teams to wear commercial patches during NCAA championships in collaboration with the NCAA’s corporate marketing and media rights partners. It is anticipated that there will be substantial returns from this new revenue opportunity, with schoolwide patch deals possibly ranging from $500,000 to more than $12 million annually.
Legal Considerations
As collegiate athletics continues to evolve toward a more commercialized landscape, opportunities for brands to connect with highly engaged fan bases are expanding. As universities evaluate potential sponsorship arrangements, they should carefully assess several legal considerations.
- NIL Conflict Management. With student-athletes now able to sign their own endorsement deals under NIL rules, schools and sponsors will need to carefully navigate potential conflicts between institutional sponsorships and individual athlete deals. These agreements may include exclusivity provisions, carve-outs or other restrictions that require careful coordination.
- Existing Apparel Agreement Considerations. Many schools have long-term exclusive agreements with apparel manufacturers related to athletic uniforms, separate contracts regarding commercial sponsorship opportunities connected to athletic events and additional agreements that specifically pertain to branded apparel. New patch sponsorship deals should be structured to avoid conflicts with existing contracts, including considerations around logo placement and co-branding approvals and whether apparel partners have right of first refusal.
- Restricted Sponsor Categories. Universities may face reputational concerns regarding certain sponsor categories. Schools will need to establish clear guidelines and contractual guardrails around acceptable sponsors.
- University Procurement Requirements. Universities may be subject to state procurement laws, competitive bidding requirements and transparency obligations that could affect how sponsorship deals are structured and awarded.
McGuireWoods has extensive experience advising on sponsorship agreements and commercial partnerships with leading brands and global icons. Our Sports and Higher Education Industry Teams are positioned to guide you through every aspect of these transactions — from initial deal structuring and intellectual property considerations to regulatory compliance and long-term partnership strategy.