NCAA Name, Image, and Likeness ("NIL") Draft Legislation
The long-awaited first draft of the NCAA NIL legislation has been revealed by the NCAA Division I Name, Image and Likeness Legislative Solutions Group. While the legislation still must be approved by the Division I member institutions in January of 2021; the latest draft provides a glimpse of what the final rule may look like.
The proposed legislation allows student-athletes to do the following and use their NIL to:
The proposed legislation allows student-athletes to do the following and use their NIL to:
- Develop businesses and partake in business activities, including establishing camps and clinics and providing private lessons, as long as the student-athlete does not use school logos, colors, or marks.
- Endorse products through commercials and appearances, and participate in other business adventures as long as the student-athlete does not use their school name, logo, colors, or other identifying information related to the school that they attend.
- Participate in and be compensated for autograph sessions, as long as the session does not occur during a school event, and school logos or marks are not used during the session, including any apparel worn by the student-athlete.
- Profit from crowdfunding efforts, such as GoFundMe, to raise money for non-profits or charities, family hardships, and educational experiences.
- Profit from commercial activities involving a product or service that conflicts with current NCAA legislation and rules, such as sports betting or gambling.
- Receive compensation for NIL activities that conflict with existing school sponsorship arrangements and deals or other institutional values.
Another significant change, as presented in the draft legislation, is that student-athletes will be allowed to enter into relationships with agents. The current NCAA rules prohibit a student-athlete from agreeing to be represented by an agent in the marketing of their athletic ability, and if such representation occurs, a student-athlete is ineligible for participation. But, the draft NIL legislation will allow student-athletes to enter into relationships with agents to do the following:
- To obtain advice for NIL ventures and business opportunities.
- Assist in NIL contract negotiations.
- Receive marketing assistance with all NIL activities.
While the NIL legislation mainly focuses on current NCAA student-athletes, recruits will also profit from their NIL and enter into business arrangements before attending college. If a recruit chooses to participate or enter into any NIL arrangements, they will be required to disclose all their NIL contracts and deals before signing with an institution. In addition, boosters and donors will be able to work with and enter into arrangements with student-athletes, as long as no improper inducements or extra benefits are provided. Thus, boosters are will not be able to enter into a NIL arrangement with a recruit that is to influence the recruit to attend a certain institution.
The first draft of the NIL legislation continued to be revised and modified before the final draft is presented for institutional approval at the annual NCAA Convention in January of 2021. Furthermore, additional details will need to be worked out and established by the NCAA institutions themselves to warrant student-athletes NIL efforts are compliant with the rules and that the institutions are not involved in the athletes NIL efforts.
The proposed NIL legislation is going to change the world of collegiate athletics as we know it. If you are thinking about venturing into any NIL activities, it is important to seek advice from professionals who are familiar with the legislation and business impacts surrounding NIL decisions and arrangements. Breazeale, Sachse, and Wilson is monitoring the progress of the NIL legislation closely to be ready to provide any advice and guidance to student-athletes, business owners, and any other parties who are seeking to participate in NIL activities