That's incorrect. The issue is how international students are compensated per their F1 visa status.
It's a matter of passive income vs active income while in the US. Things like jersey sales are considered passive income and are allowed. Promoting a business via social media or an ad, while in the US is considered active income and isn't allowed.
If the athlete is doing something NIL related in their home country, that is also allowed. This is how Adidas Canada was able to put together a deal for Aaliyah Edwards in her senior season.
And from what I'm hearing through friends with kids in the US at D1 programs, schools are finding ways to help international athletes find more NIL opportunities without violating their F1 visa status.