Article
Navigating the NCAA’s interim NIL policy and state regulations
Nov 16, 2021 · Authored by Katlyn Andrews
NCAA’s interim NIL policy
Effective July 1, 2021, all three divisions of the National Collegiate Athletic Association (NCAA) adopted an interim policy suspending preexisting name, image, and likeness (NIL) rules. While the NCAA continues to work with Congress to develop a more permanent solution that provides uniformity on a national level, all collegiate athletes are now able to profit from their name, image and likeness, regardless of whether legislation has been signed or has taken effect at the state level.
Subject to state law, the NCAA’s interim policy prohibits compensation:
- For work not performed (i.e. agreements without quid pro quo)
- Contingent upon enrollment at a particular institution
- For athletic participation or achievement (i.e., pay-for-play)
- From the institution in exchange for the use of a student athlete’s name, image or likeness
When developing institutional policies that govern NIL, colleges and universities should be aware of state laws currently in effect as well as pending or proposed legislation.
Student athletes are subject to the rules of the state in which their school is located. Prospective student athletes should be familiar with the rules that apply where they plan to compete in college.
See below for state-specific regulations this map references. We will continue to update this article as states release new regulations.
House Bill (HB) 82, Alabama’s NIL bill, was signed into law by Governor Kay Ivey on April 20, 2021 and took effect on July 1, 2021.
Alabama postsecondary educational institutions authority are prohibited from:
- Preventing any student participating in intercollegiate athletics from earning compensation as a result of the use of the student’s NIL
- Preventing a student athlete from obtaining professional representation relating to the student’s participation in intercollegiate athletics
– Note: professional representation obtained by a student athlete must be licensed by the state of Alabama - Providing prospective student athletes with compensation in relation to their NIL
- Revoking a student athlete’s scholarship as a result of earning NIL-related compensation or obtaining legal representation
Institutions must establish an athlete injury and wage fund, divided into a health savings account (HSA) and an athlete wage account that is funded by 15% of the revenue from athletic event ticket sales.
- At the conclusion of each academic year, the institutions must divide its athlete wage account equally amongst the student athletes who attended the institution that academic year
- The athlete injury health savings account will provide a student athlete who suffers a career-ending or long-term injury during a game or team practice with compensation, as determined by the Department of Education (ED), upon his or her graduation. An independent healthcare provider not affiliated with the institution must verify the qualifying injury.
Student athletes must disclose any NIL-related contract to their institution’s designated official and refrain from contracts that conflict with a provision of their team’s contract. A team contract cannot prevent a student athlete from using the athlete’s NIL for a commercial purpose when the athlete is not engaged in official team activities.
Access HB 82 here.
On March 26, 2021, Governor Doug Ducey signed Senate Bill (SB) 1296, Arizona’s NIL bill, into law. According to the Arizona legislative process, the bill becomes effective 90 days after the Legislature closes business for the Regular Session. The 2021 legislative session ended April 24, 2021, meaning the bill took effect on July 23, 2021.
Any postsecondary education institution that competes in an intercollegiate sport must allow a student athlete to earn compensation from the use of the student athlete’s own name, image or likeness to the extent allowed by the relevant national association.
A student athlete may not be denied a scholarship, have a scholarship revoked or be deemed ineligible for a scholarship based on earning NIL compensation.
An athlete agent who advises or represents a student athlete in connection with earning NIL compensation must comply with the Uniform Athlete Agents Act.
The Act does not authorize student athletes to enter into a NIL contract if it:
- Violates the intellectual property rights of any person, including the student athlete’s institution
- Conflicts with the student athlete’s team contract
Access SB 1296 here.
The Arkansas Student Athlete Publicity Rights Act, originally House Bill (HB) 1671 was signed into law by Governor Asa Hutchinson on April 21, 2021 and allows student athletes to receive compensation for the commercial use of their publicity rights effective Jan. 1, 2022.
Institutions of higher education in Arkansas are prohibited from:
- Upholding a rule that prevents a student athlete from earning compensation through the use of their publicity rights
- Preventing or penalizing a student athlete for obtaining professional representations in connection with an opportunity to earn compensation for the commercial use of the athlete’s publicity rights
– Note: an agent, athlete agent, financial advisor or attorney who is providing professional representation of a student athlete must be licensed in the state of Arkansas
A student athlete participating in varsity intercollegiate athletics is prohibited from earning compensation as a result of the commercial use of the student athlete’s publicity rights in connection with any person or entity related to or associated with the development, promotion, production, distribution or retailing of:
- Adult entertainment, sexually suggestive products or sex-oriented products, services, conduct, imagery or inferences
- Alcohol products
- Casino and gambling
- Tobacco, marijuana or electronic smoking products and devices
- Pharmaceuticals
- Any dangerous or controlled substance
- Drug paraphernalia
- Weapons, including without limitation firearms and ammunition
- Any product, substance or method that is prohibited in competition by an athletic association, athletic conference or other organization governing varsity intercollegiate athletic competition
Student athletes are prohibited from entering into a contract for the commercial use of their publicity rights if the contract:
- Requires the student athlete to endorse, use, solicit, sell, market, advertise, promote, refer to, mention, display or otherwise promote the name, image, logo, product, service, purpose, campaign, business, digital or physical address or location of any third-party licensee or commercial entity during a varsity intercollegiate athletic practice, competition or other activity
- Conflicts with a term or condition of a contract, policy, rule, regulation or standard of the student athlete’s enrolled institution of higher education
- Involves the student athlete’s performance or lack of performance in athletic competition
A student athlete may rescind a publicity rights contract without being held liable for breach of contract and with no obligation to return payments received if the student athlete is no longer:
- Enrolled at an institution of higher education
- Eligible to engage in any varsity intercollegiate athletics program at an institution of higher education
- Participating in varsity intercollegiate athletics at an institution of higher education
A student athlete must disclose the existence of the publicity rights contract, including the contract terms, conditions, parties, and compensation amounts to their institution’s appointed official.
This act does not:
- Allow a student athlete to seek or obtain compensation for any use of the student athlete’s publicity rights in connection with news, public affairs, sports broadcasting or by an institution of higher education to promote its educational, athletic or other institutional objectives
- Require an institution of higher education to identify, create, facilitate, negotiate or otherwise enable opportunities for a student athlete to earn compensation for use of their publicity rights
- Authorize a student athlete to use the name, nicknames, trademarks, services marks, landmarks, facilities, trade dress, uniforms, songs, mascots, logos, images, symbols or other intellectual property of an institution of higher education, athletic association, conference or other organization with authority over varsity intercollegiate athletics
- Limit the right of an institution to establish and enforce academic standards, team rules of conduct, governance standards or disciplinary rules applicable to all students of the institution
- Authorize any prospective student athlete who may attend an institution of higher education to negotiate or receive compensation for the commercial use of the prospective student athlete’s publicity rights before the student athlete’s enrollment
- Render student athletes employees of the institution of higher education based on participation in varsity intercollegiate athletic competition
Access HB1671 here.
California became the first state to pass a law permitting student athletes to use their NIL rights for commercial purposes when Governor Gavin Newsom signed Senate Bill (SB) 206 into law on Sept. 30, 2019. The provisions of this law were set to take effect on Jan. 1, 2023 but a new bill has been introduced to move the effective date up to Sept. 1, 2021.
California postsecondary educational institutions, except community colleges, will be prohibited from:
- Preventing a student athlete from earning compensation as a result of the use of the student’s NIL
- Providing a prospective intercollegiate student athlete with NIL-related compensation
- Preventing a student athlete from obtaining professional representation relating to the student’s participation in intercollegiate athletics
– Note: professional representation obtained by a student athlete must be licensed by the state of California. Agents must comply with the federal Sports Agent Responsibility and Trust Act in their relationships with student athletes - Revoking a student’s scholarship as a result of earning compensation or obtaining legal representation
Student athletes must disclose any NIL-related contract to their institution’s designated official and may not enter into contracts that conflict with a provision of their team’s contract. A team contract cannot prevent a student athlete from using the athlete’s NIL for a commercial purpose when the athlete is not engaged in official team activities.
Access SB206 here.
On March 20, 2020, Colorado Governor Jared Polis signed Senate Bill (SB) 20-123 into law. Although originally set to take effect on Jan. 1, 2023, the effective date was moved up to July 1, 2021.
Colorado institutions are prohibited from:
- Upholding a rule that prevents a student athlete from earning compensation from the use of the student athlete’s name, image or likeness
- Providing compensation to a current or prospective student athlete
- Providing remuneration to a prospective student athlete for their athletic ability or performance or potential athletic ability or performance
- Preventing a student athlete from obtaining professional representation in relation to contracts or legal matters, including representation provided by an athlete advisor and legal representation provided by an attorney
– Note: any person providing legal representation to a student athlete must be a licensed attorney - Revoking a student athlete’s scholarship because the student athlete receives compensation or obtains professional or legal representation
Institutions may sponsor on-campus athlete agent interviews at which an athlete agent may interview student athletes to discuss the athlete agent's representation of the student athletes in the marketing of the student athletes' athletic ability or reputation.
Student athletes are prohibited from entering into a contract providing compensation if the contract conflicts with a team contract. Institutions cannot enter into, modify or renew a team contract that prohibits a student athlete from using their NIL for commercial purpose when not engaged in official team activities.
Student athletes must disclose the contract to the institution’s athletic director within 72 hours after the student athlete enters into the contract or before the next scheduled athletic event in which the student athlete may participate, whichever occurs first.
Access SB 20-123 here.
House Bill (HB) 6402 was signed into law by Governor Ned Lamont on June 30, 2021. Section 14 of the bill permits student athletes to earn compensation through endorsement contracts or employment in an activity that is unrelated to any intercollegiate athletic program and takes effect on or after Sept. 1, 2021 or the date on which an institution adopts or updates its policy, whichever is earlier.
Connecticut institutions of higher education are prohibited from:
- Preventing a student athlete from earning compensation from an endorsement contract or employment activity
- Preventing a student athlete from representation by a duly licensed attorney or sports agent
- Restricting or revoking a student athlete's scholarship eligibility as a result of their endorsement contract or employment activity
- Disclosing any record of the compensation received by a student athlete from an endorsement contract or employment activity unless the institution receives the written consent of the student athlete
Connecticut institutions of higher education must adopt one or more policies that include provisions for:
- Requiring a student athlete to disclose and submit a copy of each endorsement contract, written agreement for employment and representation agreement to the institution
- Prohibiting a student athlete from entering into an agreement that conflicts with the provisions of any agreement to which the institution of higher education is a party
– Note: the institution must disclose to the student athlete or their attorney the provisions of the agreement that are in conflict - Prohibiting a student athlete from using or consenting to the use of any institutional marks during the performance of the endorsement contract or employment activity
- Prohibiting a student athlete's performance of the endorsement contract or employment activity from interfering with any official team activities or academic obligations
- Identifying any prohibited endorsements
Provided they comply with the policy or policies adopted by their institution, student athletes are permitted to:
- Earn compensation through an endorsement contract or employment in an activity that is unrelated to any intercollegiate athletic program
- Obtain the legal or professional representation of an attorney or sports agent through a written agreement
The bill does not:
- Require an institution, athletic association or conference to compensate a student athlete for use of his or her name, image or likeness
- Require a student athlete or any other person to compensate an institution, athletic association or conference, for a student athlete's endorsement contract or employment activity
- Qualify any scholarship that a student athlete receives from an institution as compensation
- Qualify a student athlete as an employee of an institution
- Require an institution to take any action in violation of the Discrimination Based on Sex and Blindness Act, 20 USC 1681, et seq.
- Prohibit a student athlete from engaging in an employment activity that entails coaching or performing a sport, provided such activity is not related to any intercollegiate athletic program
- Prohibit an institution from using a student athlete's name, image or likeness in connection with official team activities
Access HB6402 here.
On June 12, 2020, Florida Governor Ron DeSantis approved Senate Bill (SB) 646 allowing student athletes to earn compensation from the use of her or his name, image and likeness effective July 1, 2021.
Such compensation must:
- Be commensurate with the market value of the athlete’s name, image or likeness
- Not be provided in exchange for athletic performance or attendance at a particular institution
- Be provided by a third-party unaffiliated with the athlete’s postsecondary educational institution
State universities, Florida College System institutions and private colleges and universities are prohibited from:
- Preventing or unduly restricting an athlete from earning compensation for the use of her or his NIL
- Affecting the athlete’s grant-in-aid or athletic eligibility as a result of earning such compensation
- Compensating or causing compensation to be directed to a current or prospective athlete for her or his name, image or likeness
- Preventing an athlete from obtaining professional representation by an athlete agent or attorney engaged for the purpose of securing compensation for the use of her or his name, image or likeness
– Note: an athlete agent must be licensed under Florida law. An attorney must be a member in good standing of The Florida Bar
A postsecondary institution must conduct a financial literacy and life skills workshop for a minimum of five hours at the beginning of the intercollegiate athlete’s first and third academic years. The workshop shall, at a minimum, include information concerning:
- Financial aid
- Debt management
- A recommended budget for full and partial grant-in-aid student athletes based on the current academic year’s cost of attendance
- Time management skills
- Available academic resources
The workshop may not include any marketing, advertising, referral or solicitation by providers of financial products or services.
Student athletes must disclose any NIL-related contract to their institution’s designated official and may not enter into contracts that conflict with a provision of their team’s contract. A team contract cannot prevent a student athlete from using the athlete’s NIL for a commercial purpose when the athlete is not engaged in official team activities.
The duration of a contract for representation or NIL compensation may not extend beyond her or his participation in an athletic program at a postsecondary educational institution.
Access SB 646 here.
Georgia House Bill (HB) 617 was signed into law on May 6, 2021 and took effect on July 1, 2021. The provisions of Georgia’s law remain in effect until the earlier of:
- The effective date of any federal law enacted
- The effective date of any policy, rule or regulation adopted that allows student athletes to receive compensation for the use of their NIL
- June 30, 2025
Postsecondary institutions in Georgia (i.e., any unit of the University System of Georgia, any unit of the Technical College System of Georgia and independent or private colleges and universities located in Georgia) are prohibited from:
- Providing a current or prospective student athlete with compensation for the use of the student athlete’s name, image or likeness
- Adopting or maintaining a rule that prevents a student athlete from earning compensation as a result of the use of their name, image or likeness
- Preventing a student athlete from obtain professional representation in relation to contracts or legal matters, including but not limited to representation provided by athlete agents
– Note: athlete agents must be certified and comply with the federal Sports Agent Responsibility and Trust Act. Attorneys must be licensed to practice law in the state of Georgia
Institutions must conduct a financial literacy and life skills workshop for a minimum of five hours at the beginning of the student athlete's first and third academic years. The workshop must at a minimum, include information concerning:
- Financial aid
- Debt management
- A recommended budget for student athletes based on the current academic year's cost of attendance
The workshop shall also include information on time management skills necessary for success as a student athlete and available academic resources. The workshop may not include any marketing, advertising, referral or solicitation by providers of financial products or services.
Student athletes must disclose NIL contracts to the institution’s designated official.
Student athletes are prohibited from entering into a contract providing compensation if the contract conflicts with a team contract. Institutions cannot enter into, modify or renew a team contract that prohibits a student athlete from using their NIL for commercial purpose when not engaged in official team activities.
Team contracts may provide for a pooling arrangement whereby student athletes who receive NIL-related compensation agree to contribute a portion of the compensation they receive to a fund for the benefit of individuals previously enrolled as student athletes at the institution, provided that such an arrangement meets the following conditions:
- Student athletes are not required to contribute an amount equal to more than 75% of the NIL-related compensation received
- Each institution establishes an escrow account in any bank or lending institution subject to regulation by Georgia only
- All contributions from student athletes are deposited in the escrow account by the institution’s athletic director or his or her designee
- Former student athletes are eligible to receive a pro rata share of the pooled contributions based on the number of months the individual was a student athlete
- The institution distributes the funds in a manner that does not discriminate against individuals based upon race, gender or other personal status protected by federal or state law
Access HB 617 here.
Hawaii Senate Bill (SB) 2673 was introduced on Jan. 17, 2020, but not signed into law (it died in committee).
The bill proposed that postsecondary educational institutions be prohibited from:
- Preventing a student athlete from using the student athlete's name, image or likeness for a commercial purpose when the student athlete is not engaged in official team activities
- Providing a prospective student athlete with compensation in relation to the student athlete’s NIL
- Preventing a student athlete participating in intercollegiate athletics from obtaining professional representation in relation to contracts or legal matters
Student athletes must disclose any NIL-related contract to their institution’s designated official and must not enter into a contract in conflict with a provision of the student athlete’s team contract.
Access Hawaii SB2673 here.
Illinois Governor JB Pritzker signed Senate Bill (SB) 2338 into law on June 29, 2021, permitting student athletes to earn compensation for the use of their name, image, likeness or voice effective July 1, 2021.
Illinois public and private institutions, including community colleges, are prohibited from:
- Upholding a rule that prevents a student athlete from earning compensation through the use of their name, image, likeness or voice
- Affecting an athlete’s institutional scholarship as a result of earning compensation from use of the student’s NIL
- Directly or indirectly entering into or offering to enter into a publicity rights agreement with a prospective or current student athlete
- Providing a prospective or current student athlete or their family NIL-related compensation
- Preventing a student athlete from obtaining professional representation in relation to name, image, likeness or voice or securing a publicity rights agreement, including but not limited to representation provided by athlete agents or legal representation provided by attorneys
– Note: any agent, legal representative or other professional service provider must comply with the federal Sports Agent Responsibility and Trust Act and any other applicable laws
No booster, third-party or other individual or entity may arrange for compensation to a prospective or current student athlete as an inducement to attend or enroll in a specific institution.
Institutions may:
- Impose reasonable limitations on the dates and time that a student athlete may participate in endorsement, promotional, social media or other activities related to the license or use of their NIL
- Fund an independent third-party administer to support NIL education, monitoring, disclosures and reporting
– Note: this third-party administrator cannot be a registered athlete agent
Student athletes are prohibited from earning compensations in exchange for:
- Athletic ability
- Participation in intercollegiate athletics or sports competition
- An agreement or willingness to attend a postsecondary educational institution
Student athletes are prohibited from entering into NIL contracts that:
- Use any registered or licensed marks, logos, verbiage, name or designs of a postsecondary institution without written consent
- Conflict with a provision of the student athlete’s team contract
- Provide compensation before the date that the student athlete enrolls at a postsecondary institution
- Endorses or promotes the following:
– Gambling
– Sports betting
– Controlled substances
– Cannabis
– Tobacco or alcohol company, brand or products
– Alternative or electronic nicotine product or delivery systems
– Performance-enhancing supplements
– Adult entertainment
– Any other product that is reasonably considered to be inconsistent with the values or mission of a postsecondary educational institution
Student athletes must disclose any NIL-related contract to their institution’s designated official within seven days of entering into a NIL agreement. Publicity rights contract equal to or in excess of $500 must be formalized in a written contract and provided to the institution prior to execution and before compensation is provided to the student athlete. Contracts may not extend beyond the student athlete’s participation in the sport at the institution.
Student athletes are not to be deemed an employee, agent or independent contractor of a postsecondary institution, athletic association or conference based on their participation in intercollegiate athletics.
The bill does not:
- Restrict an institution from exercising its sole discretion to control the authorized use of it marks or logos or to determine a student athlete’s apparel, gear or other wearables during athletic competition or institution-sponsored event
- Modify any requirements or obligations imposed under Title IX of the Education Amendments of 1972
Under this act, postsecondary education institutions cannot be subject to a claim for damages of any kind, including but not limited to a claim for unfair trade or competition or tortious interference.
Access Illinois SB2338 here.
Iowa Senate File (SF) 245 was introduced on Feb. 3, 2021 but was not signed into law (it died in committee).
The bill proposed that regent institutions, community colleges and private postsecondary institutions in Iowa be prohibited from:
- Enforcing any rule, requirement, standard or other limitation that prevents a college athlete enrolled at the institution from, as a result of the use of the athlete’s name, image or likeness rights or athletic reputation:
– Earning compensation
– Receiving food, shelter or insurance coverage or receiving payment for the cost of food, shelter, insurance coverage or medical care - Affecting college athlete’s financial aid eligibility, amount, duration or renewal, or any other benefit for which the athlete is otherwise eligible, from the use of the athlete’s NIL right or athletic reputation
- Interfering or preventing a college athlete from obtaining professional representation in relation to contracts or legal matters, including but not limited to representation provided by athlete agents or financial advisors or legal representation provided by attorneys
– Note: professional representation provided to college athletes by athlete agents, financial advisors or attorneys must be licensed in the state of Iowa - Disclosing the terms of NIL contracts that the college athlete or their legal representative deems a trade secret or otherwise confidential
A person may not offer to enter into a NIL contract with a college athlete that requires the athlete to engage in in-person advertising for the person during official, mandatory team activities without approval from the athlete’s postsecondary educational institution. The terms of a team contract may not prevent an athlete from receiving NIL-related compensation for a commercial purpose when the athlete is not engaged in official team activities if such activities are recorded in writing and made publicly available. Official team activities may not exceed twenty hours per week during the athletic season and eight hours per week during the off-season.
A college athlete who enters into a contract providing compensation to the athlete for use of the athlete’s NIL rights or athletics reputation must disclose the full contract to the institution’s designated official.
Access SF 245 here.
Kansas House Bill (HB) 2264 was introduced on Feb. 8, 2021, but not signed into law.
The bill proposed that any public or private institutions in the state be prohibited from:
- Creating or enforcing any rule or other limitation that prevents a student athlete from earning compensation as a result of the use of the student athlete's NIL rights or athletic reputation
- Affecting a student athlete's scholarship eligibility or scholarship renewal eligibility due to income received
- Providing a prospective or current student athlete with compensation in relation to the athlete's NIL rights or athletic reputation
- Preventing a student athlete from obtaining professional representation in relation to contracts or legal matters, including but not limited to representation provided by an athlete agent or legal representation provided by an attorney
– Note: professional representation on behalf of a student athlete by an athlete agent or attorney shall only be provided by persons licensed by the state or holding certificates of registration as provided by applicable Kansas law - Interfering with or preventing a student athlete from fully participating in intercollegiate athletics as a result of the student athlete obtaining professional representation in relation to contracts or legal matters
- Entering into a contract that prevents a student athlete from receiving compensation for using the student athlete's NIL rights or athletic reputation for a commercial purpose when the student athlete is not engaged in official team activities
The institution may use the student athlete’s NIL rights or athletic reputation for the purpose of advertising and marketing related to the institution’s educational, athletic, academic, promotional and historic interest.
Student athletes must disclose any NIL-related contract to their institution’s designated official within five business days of the date of signature of the contract and must not enter into contracts that conflict with a provision of a contract entered into by the institution's department or an affiliated entity, including but not limited to a contract that requires the student athlete to display a sponsor's apparel.
This bill does not authorize prospective student athletes to negotiate, discuss or receive compensation for the use of their NIL rights or athletic reputation prior to the earlier of:
- The first day of class of a semester, session or term in which the student athlete is registered for full-time courses at a postsecondary educational institution
- The first practice or competition
Access HB2264 here.
Kentucky Governor Andy Beshear signed an executive order on June 24, 2021 allowing student athletes to receive name, image and likeness compensation effective July 1, 2021.
Postsecondary educational institutions located in the Commonwealth of Kentucky are prohibited from:
- Preventing a student athlete from earning compensation for the use of the name, image and likeness of the student athlete while enrolled at a postsecondary institution
- Preventing a student athlete from obtaining a certified agent for any matter or activity relating to such compensation
– Note: athlete agents must comply with the Kentucky’s Uniform Athlete Agents Act and the federal Sports Agent Responsibility and Trust Act
An institution may:
- Create reasonable limitations on or promulgate reasonable rules pertaining to the dates and times that a student athlete may participate in endorsement, promotional, social media or other activities related to a NIL agreement or contract
- Determine whether potential NIL agreements or contracts are incompatible or detrimental to the image, purpose or mission of the institution, such as but not limited to, the promotion or advertisement of:
– Alcohol
– Tobacco products
– Firearms
– Sexually-oriented activities - Restrict the use of the intellectual property and trademarks possessed by the institution
- Require the disclosure of any NIL contract or agreement between a student athlete and third party to a designed official of the institution
An institution should:
- Provide financial literacy, social media and brand management and time management education and resources for student athletes that earn compensation for the use of their NIL as well as other students seeking such education or resources
– Note: the education and resources provided should not include marketing, referrals or solicitations by any entity or association outside of the institution
The implementation of rules, policies or other directives for permitting or reasonably limiting student athletes’ ability to earn NIL-related compensation must be consistent with Title IX of the Education Amendments of 1972 and refrain from discrimination or treating individuals differently based upon race, sex, religion or other personal status protected under state or federal law.
Compensation may not be:
- In exchange for the student athlete’s athletic participation in intercollegiate athletics or other sports competition (i.e., pay for play)
- In exchange for a contract of endorsement, promotion or other activity that the institution determines is in conflict with an existing contract of endorsement, promotion or other activity entered by the institution
- Provided by or arranged by the institution, entities or organizations that support or benefit the institution or another athletic authority or their officers, directors, employees or agents
Access the executive order here.
Senate Bill (SB) 60, Louisiana’s NIL bill was signed into law by Governor John Bel Edwards on July 1, 2021 and took effect the same day.
Public and nonpublic postsecondary institutions in the state of Louisiana that receive or disburse any form of state student financial aid are prohibited from:
- Providing a current or prospective athlete with compensation for the use of the student athlete’s name, image or likeness
- Adopting or maintaining a rule that prevents or unduly restricts a student athlete from earning compensation for the use of their NIL
- Compensating or causing compensation to be directed to a current or prospective student athlete for their NIL
- Using an athletic booster to, directly or indirectly, create or facilitate compensation opportunities for the use of a student athlete’s NIL as a recruiting inducement or as a means of pay for athletics participation
- Restrict a student athlete from obtaining professional representation by an athlete agent or attorney engaged for the purposes of securing NIL-related compensation
– Note: professional representation obtained by the student athlete must be registered with or licensed for such activity by the state of Louisiana. An athlete agent must comply with the federal Sports Agent Responsibility and Trust Act. The duration of a contract for representation may not extend beyond the student athlete’s athletic participation at an institution
Institutions may prohibit a student athlete from using their NIL for compensation if the proposed use conflicts with either:
- Existing institutional sponsorship agreements or contracts
- Institutional values as defined by the institution
Institutions must conduct a financial literacy and life skills workshop for a minimum of five hours at the beginning of a student athlete’s first and third academic years. The workshop must include information concerning:
- Financial aid
- Debt management
- A recommended budget for full and partial grant-in-aid athletes based on the cost of attendance for the current academic year
- Time management skills necessary for success as a student athlete
- Available academic resources
The workshop must not include any marketing, advertising, referral or solicitation by financial products or services providers.
Student athletes are prohibited from:
- Earning NIL-related compensation for the endorsement of:
– Tobacco
– Alcohol
– Illegal substances or activities
– Banned athletic substances
– Any form of gambling, including sports wagering - Using the institution’s facilities, uniforms, registered trademarks, products protected by copyright, official logos, marks or colors or other indicia in connection with the use of the athlete’s NIL without the express permission of the institution
- Entering into a contract for NIL-related compensation if a term of the contract conflicts with a term of the student athlete’s team contract
Student athletes must disclose NIL-related contracts to their institution in the manner designated by the institution.
A contract for compensation for the use of the NIL of a student athlete under the age of eighteen must be executed on the athlete’s behalf by a parent or legal guardian.
Access SB 60 here.
Maryland Senate Bill (SB) 439, named the Jordan McNair Safe and Fair Play Act after the University of Maryland football player who died in 2018, requires public institutions to adopt NIL- and health-related policies. Signed into law on May 18, 2021 by Governor Larry Hogan, the health provisions took effect July 1, 2021 while the NIL features are set to take effect on July 1, 2023.
Maryland public institutions are prohibited from:
- Upholding a rule that prevents a student athlete from earning compensation through the use of their name, image or likeness
- Reducing, rescinding or otherwise affecting a student athlete’s scholarship because the student athlete earns NIL-related compensation
- Providing a prospective student athlete with compensation in relation to the student athlete’s NIL
- Preventing a student athlete from obtaining representation in relation to contracts or legal matters
An athletic program contract of a public institution of higher education may not prevent a student athlete from using the student athlete’s NIL for commercial purpose when the student athlete is not engages in official team activities. The athletic program contract may prohibit a student athlete from engaging in in-person advertising for a third-party sponsor during official and mandatory team activities without prior approval from the institution’s athletic department.
Student athletes must disclose any NIL-related contract to their institution’s designated official and refrain from contracts that conflict with a provision of their athletic program’s contract.
Nothing in this bill permits a student athlete the right to make commercial use of names, trademarks, logos or intellectual property owned or controlled by the institution.
Access Maryland SB 439 – Jordan McNair Safe and Fair Play Act here.
Massachusetts Senate Bill S.2454 was introduced but not signed into law (no further action has been taken after Jan. 5, 2021).
The bill proposed that public and private institutions of higher education, including community colleges, be prohibited from:
- Upholding a rule that prevents a student athlete from earning compensation through the use of their name, image or likeness
- Revoking or affecting an athlete’s scholarship as a result of earning compensation from use of the student’s NIL
- Providing a prospective student athlete with compensation in relation to the student athlete’s NIL
- Preventing a student athlete participating in intercollegiate athletics from obtaining professional representation in relation to contracts or legal matters, including but not limited to, representation provided by athlete agents or legal representation provided by attorneys
– Note: professional representation must be registered with the Commonwealth of Massachusetts. Agents representing student athletes shall comply with the federal Sports Agent Responsibility and Trust Act
Each institution shall establish a catastrophic sports injury fund to provide a student athlete who suffers a career-ending or long-term catastrophic sports injury during an intercollegiate athletic competition or practice with compensation, as determined by the Board of Higher Education, upon his or her graduation. An independent healthcare provider not affiliated with the institution must verify the qualifying injury.
Student athletes must disclose any NIL-related contract to their institution’s appointed official and refrain from contracts that conflict with a provision of their team’s contract. An institutional team contract cannot prevent a student athlete from using the athlete’s NIL for a commercial purpose when the athlete is not engaged in official team activities.
Access S.2454 here.
House Bill (HB) 5217, Michigan’s NIL bill, was signed into law by Governor Gretchen Whitmer on Dec. 30, 2020 and is set to take effect on Dec. 31, 2022.
Public and private postsecondary institutions in the state of Michigan are prohibited from:
- Upholding a rule or other limitation that prevents a student athlete from earning compensation as a result of the student’s use of his or her name, image or likeness rights
- Providing a prospective college athlete with compensation in relation to the athlete’s NIL rights
- Preventing a student who resides in the state and participates in intercollegiate athletics from obtaining professional representation in relation to contracts or legal matters regarding opportunities to be compensated for the use of the student’s NIL rights, including but not limited to, representation by an athlete agent or legal representation by an attorney
– Note: professional representation by an athlete agent, financial advisor or attorney must be provided by persons licensed in the state of Michigan - Revoking or reducing an athletic grant-in-aid or stipend scholarship based upon a student earning compensation
A student is prohibited from entering into an apparel contract providing NIL-related compensation that requires the student to display a sponsor’s apparel, or otherwise advertise for a sponsor, during official team activities if the provision is in conflict with a provision of the student’s team contract. A team contract may not prevent a student from receiving compensation for using his or her NIL rights for a commercial purpose when the student is not engaged in official team activities.
A student must disclose a proposed opportunity or contract to the institution’s designated official at least seven days prior to committing to the opportunity or contract.
This law does not:
- Require an institution to identify, create, facilitate, negotiate or otherwise enable opportunities for a student to earn compensation for the student’s use of his or her NIL rights
- Establish the right of a student to use the name, trademarks, services marks, logos, symbols or any other intellectual property, whether registered or not, of an institution, athletic association, conference or other group or organization with authority over intercollegiate athletics
- Limit the right of an institution to establish and enforce any of the following:
– Academic standards, requirements, regulations or obligations for its students
– Team rules of conduct or other rules of conduct
– Standards or policies regarding the governance, operation of or participation in intercollegiate varsity athletics
– Disciplinary rules and standards generally applicable to all students of the postsecondary educational institution
Access HB 5217 here.
Minnesota House Bill (HB) 3329 was introduced on Feb. 13, 2020 but was not signed into law (it died in committee).
The bill proposed that institutions governed by the Board of Trustees of the Minnesota State College and Universities, private postsecondary institutions that offer in-person courses on a campus located in Minnesota and institutions governed by the Board of Regents of the University of Minnesota be prohibited from:
- Upholding any rule, requirement, standard or other limitation that prevents a student from earning compensation as a result of the use of the student's name, image or likeness rights or the student's athletic reputation
- Affecting a student's scholarship eligibility or renewal as result of the use of the student’s NIL rights or athletic reputation
- Interfering with or preventing a student from obtaining professional representation in relation to contracts or legal matters, including but not limited to, representation provided by athlete agents, financial advisors or legal representation provided by attorneys
– Note: professional representation provided by athlete agents, financial advisors or attorneys must be by persons licensed by the state of Minnesota
College athletes may not enter into an apparel contract providing compensation to the athlete for use of the athlete's NIL rights that requires a student to display a sponsor's apparel or otherwise advertises for the sponsor during official team activities if such provisions are in conflict with a provision of the athlete's team contract. A team contract must not prevent a college athlete from receiving compensation for using the athlete's NIL rights for a commercial purpose when the athlete is not engaged in official team activities.
College athletes must disclose NIL-related contract to the institution’s designated official.
Access HB 3329 here.
Senate Bill (SB) 2313, Mississippi’s NIL bill, now known as the “Mississippi Intercollegiate Athletics Compensation Rights Act,” was signed into law by Governor Tate Reeves on April 16, 2021 and took effect on July 1, 2021.
Mississippi public universities, community colleges and private universities and colleges are prohibited from:
- Upholding a rule or other limitation that prevents a student athlete from earning compensation as a result of the student’s use of his or her name, image or likeness rights
- Affecting a student athlete’s scholarship eligibility, grant-in-aid or other financial aid awards or benefits
- Entering into or offering to enter into a NIL agreement with a prospective or current student athlete
- Providing a prospective or current student athlete or the student athlete's family compensation in relation to the use of the student athlete's NIL
- Preventing a student athlete from obtaining professional representation in relation to NIL or securing a NIL agreement, including but not limited to, representation provided by athlete agents or legal representation provided by attorneys
– Note: professional representation obtained by student athletes must be from persons registered as athlete agents. Athlete agents representing student athletes must comply with the state Uniform Athlete Agents Act and the federal Sports Agent Responsibility and Trust Act in their relationships with student athletes. Attorneys who provide legal representation to student athletes must be licensed to practice law in the State of Mississippi and in good standing with The Mississippi Bar.
An institution may:
- Impose reasonable limitations on the dates and time that a student athlete may participate in endorsement, promotional, social media or other activities related to the license or use of the student athlete's NIL
- Control the authorized use of its marks or logos or to determine a student athlete's apparel, gear or other wearables during an intercollegiate athletics competition or institution-sponsored event
- Prohibit a student athlete from wearing any item of clothing, shoes or other gear or wearables with the name, logo or insignia of any entity during an intercollegiate athletics competition or institution-sponsored event
Student athletes are prohibited from entering into a contract for NIL-related compensation:
- In a way that also uses any registered or licensed marks, logos, verbiage or designs of an institution, unless the institution has provided the student athlete with written permission to do so prior to execution of the contract or receipt of compensation
- Before the date on which the student athlete enrolls at a postsecondary institution
- For the endorsement or promotion of:
– Gambling
– Sports betting
– Controlled substances
– Marijuana
– Tobacco or alcohol company, brand or products, alternative or electronic nicotine products or delivery systems
– Performance-enhancing supplements
– Adult entertainment
– Any other product or service that is reasonably considered to be inconsistent with the values or mission of an institution or that negatively impacts or reflects adversely on an institution or its athletic programs
A student athlete must:
- Provide the institution with written notice at least seven (7) days prior to entering into a representation agreement with any individual for the purpose of exploring or securing compensation for use of the student athlete's NIL
- Disclose a contract for NIL-related compensation to the institution’s designated official in a manner prescribed by the institution before the contract is executed and any compensation is provided
Third-party licensees are prohibited from entering into a NIL agreement with a student athlete:
- If a provision of the NIL agreement or the use of the student athlete's NIL rights conflicts with a provision of an institution contract, rule, regulation, standard or other requirement unless expressly approved in writing by the institution
- As an inducement for the student athlete to attend or enroll in a specific institution or group of institutions
– Note: this applies to institutions and boosters as well
Student athletes are not to be deemed an employee, agent or independent contractor of a postsecondary institution, athletic association or conference based on their participation in intercollegiate athletics.
A contract for the use of a student athlete's NIL may not extend beyond the student athlete's participation in the sport at the institution.
Access SB 2313 here.
On July 14, 2021, Missouri Governor Mike Parsons signed House Bill (HB) 297 allowing student athletes to earn compensation as a result of the use of the student’s name, image, likeness rights or athletic reputation effective Aug. 28, 2021.
Postsecondary education institutions are prohibited from:
- Upholding any rule, requirement, standard or other limitation that prevents a student of that institution from earning compensation as a result of the use of the student's name, image or likeness rights or athletic reputation
- Interfering with or preventing a student from obtaining professional representation in relation to contracts or legal matters, including but not limited to, representation provided by athlete agents, financial advisors or legal representation provided by attorneys
– Note: student athlete representation must be by attorneys or agents licensed by the state of Missouri - Compensating or causing compensation to be directed to a student athlete, prospective student athlete or the family of such individuals for the use of the student athlete’s NIL or athletic reputation
Postsecondary educational institutions that enter into commercial agreements that directly or indirectly require the use of a student athlete's name, image, likeness or athletic reputation must:
- Conduct a financial development program once per year for their athletes
– Note: the financial development program may not include any marketing, advertising, referral or solicitation by providers of financial products or services - Help distribute informational materials for such programs as needed
- Inform their athletes of such program meetings and provide appropriate meeting space
An institution's athletic program’s contract cannot prevent a student athlete from receiving compensation for using the student athlete's NIL rights or athletic reputation for a commercial purpose when the athlete is not engaged in official mandatory team activities that are recorded in writing and can be made publicly available upon request.
Student athletes are prohibited from entering into an apparel, equipment or beverage contract providing NIL-related compensation if:
- The contract requires the athlete to display a sponsor's apparel, equipment or beverage or otherwise advertise for the sponsor during official team activities
- Provisions are in conflict with a provision of the postsecondary institution's current licenses or contracts
- The institution determines that a term of the contract conflicts with a term of a contract to which such institution is a party
Student athletes must disclose NIL contracts to his or her postsecondary educational institution in a manner prescribed by the institution.
Access HB 297 here.
Senate Bill (SB) 248, Montana’s NIL bill, was signed into law by Governor Greg Gianforte on April 30, 2021 and is set to take effect on June 1, 2023.
Public and private colleges and universities in the state of Montana are prohibited from:
- Preventing or restricting a student athlete from exercising the student athlete's right to earn compensation for the use of the student athlete’s name, image and likeness and to contract with and retain professional representation of an athlete agent
- Penalizing or retaliating against a student athlete for exercising the student athlete's rights
- Prohibiting a student athlete from participating in an intercollegiate sport for exercising the student athlete's rights
- Imposing an eligibility requirement on a scholarship or grant that requires a student athlete to refrain from exercising the student athlete's rights
- Providing a prospective or current student athlete compensation for use of the student athlete's NIL
The institution may:
- Include provisions in scholarship agreements allowing the school to use the athlete's NIL
- Prohibit the use of an athlete's NIL on school property, at school functions, or in any advertising material distributed or placed on school property
- Serve as an agent for the athlete to manage any contract using an athlete's NIL
The bill does not prohibit an institution from establishing or enforcing a conduct code that is applicable to all students enrolled at the unit.
Student athletes may not enter into a contract that provides NIL-related compensation if terms of the contract conflict with the student athlete’s team rules or with terms of a contract between the student athlete’s institution and a third party. The team rules or a contract entered into between the institution and a third party may not prevent a student athlete from earning NIL-related compensation when not engaged in official team activities.
Student athletes must disclose NIL contracts to an official of the institution if the student athlete is a team member, or if the student athlete is not a team member, at the time the student athlete seeks to become a team member.
Access SB 248 here.
Legislative Bill (LB) 962, Nebraska’s NIL bill, now known as the Nebraska Fair Pay to Play Act, was signed into law by Governor Pete Ricketts on July 21, 2020 and is set to take effect no later than July 1, 2023.
Nebraska’s postsecondary institutions are prohibited from:
- Upholding any rule or other limitation that prevents a student athlete from fully participating in an intercollegiate sport because such student athlete earns compensation for the use of such student athlete's name, image or likeness rights or athletic reputation
- Allowing NIL-related compensation to affect the duration, amount, eligibility for or renewal of any athletic grant-in-aid or other institutional scholarship
– Note: NIL compensation earned by a student may be used for the calculation of income for determining eligibility for need-based financial aid - Disclosing any terms of a student athlete’s NIL contract that the student athlete or their professional representation deems to be a trade secret or otherwise nondisclosable
- Penalizing or preventing a student athlete from fully participating in an intercollegiate sport because such student athlete obtains professional representation in relation to a contract or legal matter
- Entering into, modifying or renewing any contract in a manner that conflicts with the Nebraska Fair Pay to Play Act
Student athletes are prohibited from entering into a contract with a sponsor that provides NIL-related compensation if:
- The contract requires such student athlete to display such sponsor's apparel or otherwise advertise for the sponsor during official team activities
- Compliance with such contract requirement would conflict with a team contract
– Note: a team contract cannot prevent a student athlete from receiving NIL-related compensation when the student athlete is not engaged in official team activities
Student athletes must disclose any NIL contracts to the institution’s designated official. The designation must be communicated in writing to each student athlete at the institution.
An athlete agency contract must be in a record, signed or otherwise authenticated by the parties and contain:
- The amount and method of calculating the consideration to be paid by the student athlete for services to be provided by the athlete agent and any other consideration the athlete agent has received or will receive from any other source for entering into the contract or for providing the services
- The name of any person not listed in the application for registration or renewal of registration who will be compensated because the student athlete signed the agency contract
- A description of any expenses that the student athlete agrees to reimburse
- A description of the services to be provided to the student athlete
- The duration of the contract
- The date of execution
- A conspicuous notice in boldface type and capital letters stating: WARNING TO STUDENT-ATHLETE IF YOU SIGN THIS CONTRACT:
– IF YOU ENTER INTO NEGOTIATIONS FOR, OR SIGN, A PROFESSIONAL-SPORTS-SERVICES CONTRACT, YOU MAY LOSE YOUR ELIGIBILITY TO COMPETE AS A STUDENTLB962 2020 LB962 2020 -2- ATHLETE IN YOUR SPORT
– IF YOU HAVE AN ATHLETIC DIRECTOR, WITHIN 72 HOURS AFTER ENTERING INTO THIS CONTRACT, BOTH YOU AND YOUR ATHLETE AGENT MUST NOTIFY YOUR ATHLETIC DIRECTOR
– YOU MAY CANCEL THIS CONTRACT WITHIN 14 DAYS AFTER SIGNING IT. CANCELLATION OF THIS CONTRACT MAY NOT REINSTATE YOUR ELIGIBILITY
An athlete agent may not:
- Give any materially false or misleading information or make a materially false promise or representation
- Furnish anything of value to a student athlete before the student athlete enters into the agency contract
- Furnish anything of value to any individual other than the student athlete or another registered athlete agent
- Initiate contact with a student athlete unless registered under the Nebraska Uniform Athlete Agents Act
- Refuse or fail to retain or permit inspection of the records required to be retained
- Fail to register when required
- Provide materially false or misleading information in an application for registration or renewal of registration
- Predate or postdate an agency contract
- Fail to notify a student athlete before the student athlete signs or otherwise authenticates an agency contract for a particular sport that entering into negotiations for, or signing, a professional-sports-services contract may make the student athlete ineligible to participate as a student athlete in that sport
Access LB 962 here.
Assembly Bill (AB) 254, Nevada’s NIL bill, was signed into law by Governor Steve Sisolak on June 3, 2021 and is set to take effect on Jan. 1, 2022.
An institution is prohibited from:
- Upholding or enforcing any rule that prevents a student athlete from being compensated for the use of the student athlete’s name, image or likeness
- Preventing a student athlete from being compensated for the use of the student athlete’s NIL
- Compensating a prospective or current student athlete of the institution for the use of the student athlete’s NIL
- Preventing a student athlete from obtaining professional services
- Altering, withholding or otherwise reducing the amount of a scholarship awarded to a student athlete solely because a student athlete is compensated for the use of the student athlete’s NIL
An institution may:
- Adopt a policy that imposes reasonable restrictions on a student athlete entering into a contract to be compensated for their NIL
- Prohibit a student athlete from being compensated for the use of the student athlete’s NIL if the use is related to official activities of the institution or intercollegiate sports at the institution
- Require a student athlete to take courses or receive education or training in contracts, financial literacy or any other subjects the institution deems necessary to prepare a student athlete to enter into contracts
A contract entered into may not conflict with any provision of a contract between the student athlete and the institution in which they are enrolled. A prospective student athlete must disclose previous or existing NIL-related contracts to the institution before signing a letter of intent with the institution.
A student athlete must disclose NIL-related contracts to the institution.
Access AB 254 here.
New Hampshire House Bill (HB) 1505 was introduced on June 16, 2020 but not signed into law (it died in chamber).
The bill proposed that postsecondary educational institutions, including community colleges, be prohibited from:
- Upholding a rule that prevents a student athlete from earning compensation through the use of their name, image or likeness
- Affecting an athlete’s scholarship as a result of earning compensation from use of the student’s NIL
- Preventing a student athlete from obtaining professional representation including, but not limited to, representation provided by athlete agents, financial advisors or legal representation provided by attorneys
– Note: professional representation provided by athlete agents, financial advisors and/or attorneys must be by persons licensed or registered by the state of New Hampshire.
Student athletes must disclose any NIL-related contract to their institution’s designated official and are prohibited from entering into an apparel contract that requires a student to display a sponsor’s apparel or otherwise advertise for the sponsor during official team activities if such provisions are in conflict with a provision of the athlete’s team contract. An institutional team contract cannot prevent a student athlete from using the athlete’s NIL for a commercial purpose when the athlete is not engaged in official team activities.
Access HB 1505 here.
The New Jersey Fair Play Act (NJ S971), approved by Governor Phil Murphy on Sept. 14, 2020 and applicable in the fifth academic year following enactment, allows collegiate student athletes to earn compensation for the use of their NIL.
New Jersey four-year institutions of higher education are prohibited from:
- Upholding a rule that prevents a student athlete from earning compensation through the use of their name, image or likeness
- Affecting an athlete’s institutional scholarship as a result of earning compensation from use of the student’s NIL (except as noted below)
- Preventing a student athlete from obtaining professional representation in regards to contracts or legal matters including but not limited to, representation provided by athlete agents or legal representation provided by attorneys
– Note: legal representation obtained by student athletes must be from attorneys licensed by the state of New Jersey. Athlete agents representing student athletes must comply with the federal Sports Agent Responsibility and Trust Act - Being a member of an athletic association, conference or other group or organization with authority over intercollegiate athletics that:
– Prohibits student athletes from profiting from their NIL
– Prohibits an institution of higher education from participating in intercollegiate athletics as a result of the NIL-related compensation of student athletes
– Provides prospective student athletes with NIL-related compensation
– Prevents student athletes from obtaining professional representation in relation to contract or legal matters - Providing a prospective student athletes with compensation in relation to the student athlete’s NIL
Student athletes are prohibited from earning NIL-related compensation in connection with the following areas:
- Adult entertainment
- Alcohol products
- Casinos and gambling
- Tobacco and electronic smoking products and devices
- Prescription pharmaceuticals and controlled dangerous substances
- Weapons, including firearms and ammunition
Earning compensation in connection with any of the above areas will result in revocation of the student athlete’s institutional scholarship eligibility.
Student athletes must disclose any NIL-related contract to their institution’s designated official and refrain from contracts that conflict with a provision of their team’s contract. An institutional team contract cannot prevent a student athlete from using the athlete’s NIL for a commercial purpose when the athlete is not engaged in official team activities. The institutional team contract must allow the institution, athletic association, conference or other group or organization with authority over intercollegiate athletics to use the student athlete’s NIL for advertising and marketing purposes without additional compensation paid to the student athlete.
Access NJ S971 – New Jersey Fair Play Act here.
Originally Senate Bill (SB) 94, and now known as the Student Athlete Endorsement Act, was signed into law by Michelle Lujan Grisham on April 7, 2021 and took effect on July 1, 2021.
Postsecondary educational institutions with a physical site in New Mexico are prohibited from:
- Upholding any rule, requirement, standard or other limitation that prevents a student athlete of that institution from fully participating in athletics without penalty for receiving food, shelter, medical expenses or insurance from a third party or for earning compensation from a third party as a result of the use of the student athlete's name, image, likeness or athletic reputation
- Prohibiting or discouraging a student athlete from wearing footwear of the student athlete's choice during official, mandatory team activities so long as the footwear does not have reflective fabric or lights or pose a health risk to a student athlete
- Preventing a student athlete from receiving third-party compensation for using the student athlete's name, image, likeness or athletic reputation when the student athlete is not engaged in official, mandatory team activities
- Arranging third-party compensation for the use of a student athlete's name, image, likeness or athletic reputation or use such deals as inducements to recruit prospective student athletes
- Interfering with or preventing a student athlete from fully participating in athletics for obtaining representation unaffiliated with an institution or its partners in relation to contracts or legal matters
– Note: an entity or individual that represents a postsecondary educational institution or has represented that postsecondary educational institution in the previous four years may not represent a student athlete who is attending that institution
A third party must not offer a student athlete a contract to provide compensation to the student athlete that requires a student athlete to advertise for the sponsor in person during official, mandatory team activities without the approval of the student athlete's postsecondary educational institution.
Access SB 94 here.
Senate Bill (SB) S6722B, also called the New York Collegiate Athletic Participation Compensation Act, was introduced to the New York State Senate on Sept. 16, 2019 but has not been passed into law as of this date. If approved, this act will take effect Jan. 1, 2023.
The bill proposes that colleges and universities (community colleges are exempt), athletic associations, conferences or other organizations with authority (e.g., the NCAA) are prohibited from:
- Upholding a rule that prevents a student athlete from earning compensation through the use of their name, image or likeness
- Affecting an athlete’s institutional scholarship as a result of earning compensation from use of the student’s NIL
- Providing a prospective student athlete with NIL-related compensation
- Preventing a student athlete from obtaining professional representation in relation to contracts or legal matters, including but not limited to, representation provided by athlete agents or legal representation provided by attorneys
– Note: professional representation obtained by a student athlete must be licensed by the state of New York. Athlete agents representing student athletes must comply with the federal Sports Agent Responsibility and Trust Act.
Institutions must establish a sports injury health savings account (HAS) and a wage fund, which is funded by 15% of the revenue earned from a college’s athletics program.
- At the conclusion of each academic year, the institutions must divide its athlete wage account equally among the student athletes who attended the institution that academic year
- The sports injury HSA will provide a student athlete who suffers a career-ending or serious injury during a game or team practice with compensation, as determined by the department, upon his or her graduation. An independent healthcare provider not affiliated with the institution must verify the qualifying injury
Student athletes must disclose any NIL-related contract to their institution’s designated official and refrain from contracts that conflict with a provision of the athlete’s team contract. An institutional team contract cannot prevent a student athlete from using the athlete’s NIL for a commercial purpose when the athlete is not engaged in official team activities.
Access SB S6722B – New York Collegiate Athletic Participation Act here.
North Carolina Governor Roy Cooper signed an executive order on July 2, 2021 allowing student athletes to receive name, image and likeness compensation effective the same day.
Postsecondary institutions may not compensation student athletes for the use of their NIL.
Institutions may, but are not required to:
- Prohibit student athletes from receiving compensation or entering into NIL-related agreements or contracts if such arrangements conflict with a contract of the institution
- Prohibit student athletes from receiving compensation from supporting organizations of the institution, including entities that are wholly or partially owned or controlled by the institution
- Impose reasonable limitations or exclusions on the categories of products and brands that a student athlete may receive compensation for endorsing to the extent that the institution reasonably determines that a product or brand is antithetical to the values of the institution or that association with the product or brand may negatively impact the image of the institution
- Limit NIL compensation during official team activities or institution-sponsored events
- Require and establish procedures for ascertaining that a student athlete’s NIL use is commensurate with fair market value
- Limit a student athlete’s NIL compensation as it pertains to the use of the institution’s intellectual property, facilities or other equipment and gear provided by the institution, including but not limited to, uniforms, insignias and logos
– Note: the executive order does not establish or grant any student athlete the right to use the name, trademarks, service marks, symbols, logos or any other intellectual property that belong to an institution, athletic conference or athletic association - Promulgate reasonable rules and regulations regarding reporting and disclosure requirements as it related to a student athlete’s receipt of compensation, execution of a contract providing NIL compensation or intent to enter into a NIL contract
Institutions are encouraged to provide financial literacy and life-skill programs to student athletes, including educational workshops on time management and budgeting.
A student athlete’s representative relating to any agreement for use of his or her NIL rights must comply with the North Carolina Athlete Agent Act and federal Sports Agent Responsibility and Trust Act.
Student athletes may not enter into contracts or receive compensation for the use of their NIL as a direct inducement to enroll or continue enrollment at a particular institution, for purposes of participating in the institution’s athlete program or as compensation for performance, participation or service in an intercollegiate sport.
Access the executive order here.
On June 28, 2021, Ohio Governor Mike DeWine signed an executive order, originally introduced as Senate Bill (SB) 187, allowing college athletes to earn compensation from their NIL effective July 1, 2021.
Ohio state institutions of higher education and private colleges are prohibited from:
- Upholding a rule that prevents a student athlete from earning compensation through the use of their name, image or likeness
- Affecting an athlete’s scholarship eligibility as a result of earning compensation from use of the student’s NIL
- Providing prospective student athletes with NIL-related compensation
- Preventing a student athlete from participating in intercollegiate athletics to utilize professional representation in regards to contracts or legal matters
An institution may prohibit student athletes from earning NIL-related compensation associated with the following areas:
- Controlled substances, marijuana, alcohol, tobacco, electronic smoking, vapor or nicotine products
- Adult entertainment
- Casinos or other entities that promote gambling activities
- Other companies, brands or types of contract similar to the above that the institution communicates to the student prior to enrollment
Student athletes who intend to enter into a verbal or written contract providing NIL-related compensation must disclose the proposed contract to their institution’s designated official. Student athletes must not enter into a contract that requires the student to display a sponsor's product or otherwise advertise for a sponsor during official team activities or any other time if that requirement is in conflict with a provision of a contract to which the institution is a party. An institutional team contract cannot prevent a student athlete from using the athlete’s NIL for a commercial purpose when the athlete is not engaged in official team activities.
The bill does not:
- Require an institution, athletic association, conference or other organization with authority to identify, create, facilitate, negotiate or otherwise enable opportunities for a student to earn compensation for use of the student's NIL
- Grant a student to use the name, trademarks, services marks, logos, symbols or any other intellectual property of the institution, athletic association, conference or other organization with authority over intercollegiate athletics to further the student's opportunities to earn compensation for use of the student's NIL
- Limit the rights of an institution to establish and enforce academic standards for its students, team rules of conduct or other rules of conduct, standards or policies regarding the governance or operation of or participation in intercollegiate varsity athletics, and disciplinary rules and standards generally applicable to all students of the institution
Access SB 187 here.
House Bill (HB) 1994, Oklahoma’s NIL bill, was signed into law by Governor Kevin Stitt on May 25, 2021 and took effect immediately.
Institutions within The Oklahoma State System of Higher Education and private educational institutions are prohibited from:
- Upholding a rule that prevents a student athlete from earning compensation through the use of their name, image or likeness
- Reducing, rescinding or otherwise affecting a student athlete’s scholarship because the student athlete earns NIL-related compensation
- Providing a prospective student athlete with compensation in relation to the student athlete’s NIL
- Preventing a student athlete from obtaining representation in relation to contracts or legal matters
– Note: professional representation provided by athlete agents must be licensed pursuant to the Uniform Athlete Agents Act and comply with the federal Sports Agent Responsibility and Trust Act. Legal representation must be attorneys licensed to practice law in the state of Oklahoma
Student athletes must disclose any NIL-related contract to their institution’s designated official and refrain from contracts that conflict with a provision of the athlete’s team contract.
Access HB 1994 here.
Senate Bill (SB) 5, Oregon’s NIL bill, was signed into law by Governor Kate Brown on June 29, 2021 and took effect on July 1, 2021.
Oregon public and private institutions are prohibited from:
- Preventing or restricting a student athlete from exercising the student’s right to earn compensation for use of the student’s NIL and to contract with and retain professional representation or an athlete agent
– Note: a student athlete may not contract with a professional representative or athlete agent if the person represented a postsecondary institution of education at any time in the preceding four years. Written agency contracts must contain specific language including a conspicuous warning to the student athlete - Penalizing or retaliating against a student athlete for exercising the student’s rights
- Prohibiting a student athlete from participating in an intercollegiate sport for exercising the student’s rights
- Imposing an eligibility requirement on a scholarship or grant that requires a student athlete to refrain from exercising the student’s rights
- Prohibiting a student athlete from receiving food, drink, lodging or medical expenses or insurance coverage from a third party as compensation for use of the student’s NIL
- Providing a prospective or current student athlete compensation for use of the athlete’s NIL
This bill does not prohibit an institution from establishing or enforcing a conduct code that is applicable to all students enrolled at the institution.
Student athletes must disclose any NIL-related contract to their institution’s designated official and refrain from contracts that conflict with the athlete’s team rules or with the terms of a contract entered into between the student athlete’s institution and a third party. Neither the team rules nor a contract entered into between the institution and a third party may prevent a student athlete from earning compensation for use of the student athlete’s NIL when not engaged in official team activities. This may include participating in or being part of an advertisement that was created while not engaged in official team activities but that may otherwise be broadcasted, displayed or disseminated at any time.
Article XX-K of Pennsylvania Senate Bill (SB) 381, signed by Governor Tom Wolf on June 30, 2021, and effective as of July 1, 2021, allows student athletes at Pennsylvania colleges and universities to profit from their NIL provided that compensation is commensurate with the student’s market value and is not contingent upon the student athlete’s attendance, participation or performance at a particular institution.
Pennsylvania public and private institutions are prohibited from:
- Upholding a rule that prevents a student athlete from earning compensation through the use of their name, image or likeness
- Arranging third-party compensation for a student athlete or use a similar type of arrangement as an inducement to recruit a prospective student athlete
- Preventing a student athlete from obtaining professional representation including but not limited to, representation provided by athlete agents, financial advisors or legal representation provided by attorneys
– Note: professional representation provided by athlete agents, financial advisors and/or attorneys must be by persons registered with the Commonwealth of Pennsylvania. A person that represents an institution may not represent a college student athlete in a business agreement - Revoking or reducing an athletics grant-in-aid or stipend scholarship as a result of NIL-related earnings
A person that produces a college team jersey, video game or trading card for the purpose of making a profit must make a royalty payment to each student athlete whose NIL or other individually identifiable feature is used.
The bill does not:
- Require an institution, athletic association, conference or other organization with authority to identify, create, facilitate, negotiate or otherwise enable opportunities for a student to earn compensation for use of the student's NIL
- Grant a student to use the name, trademarks, services marks, logos, symbols or any other intellectual property of the institution, athletic association, conference or other organization with authority over intercollegiate athletics to further the student's opportunities to earn compensation for use of the student's NIL
- Limit the rights of an institution to establish and enforce academic standards for its students, team rules of conduct or other rules of conduct, standards or policies regarding the governance, operation of or participation in intercollegiate varsity athletics, and disciplinary rules and standards generally applicable to all students of the institution
Student athletes are prohibited from earning NIL-related compensation in connection with the following areas:
- Adult entertainment
- Alcohol products
- Casinos and gambling
- Tobacco and electronic smoking products and devices
- Prescription pharmaceuticals
- Controlled dangerous substances
An institution may also prohibit an athlete’s involvement in NIL activities that conflict with existing institutional sponsorship arrangements or institutional values. Colleges and universities may create policies that specify which NIL activities student athletes may or may not engage in.
A student athlete who proposes to enter into a contract providing NIL-related compensation must disclose the contract at least seven days prior to execution to their institution’s designated official.
Access Article XX-K of SB 381 here.
Rhode Island House Bill (HB) 7806 was introduced on Feb. 26, 2020 but not signed into law (it died in committee).
The bill proposed that public and private postsecondary educational institutions be prohibited from:
- Upholding a rule that prevents a student athlete from earning compensation through the use of their name, image or likeness
- Affecting an athlete’s scholarship eligibility as a result of earning compensation from use of the student’s NIL
- Providing a prospective student athlete with compensation in relation to the student athlete’s NIL
- Preventing a student athlete participating in intercollegiate athletics from utilizing professional representation in regards to contracts or legal matters, including but not limited to, representation provided by an athlete agent or legal representation provided by an attorney
– Note: professional representation would have to be registered by the State of Rhode Island. An agent representing a student athlete would have to comply with the federal Sports Agent Responsibility and Trust Act
Student athletes must disclose any NIL-related contract to their institution’s designated official and refrain from contracts that conflict with a provision of the athlete’s team contract. An institutional team contract cannot prevent a student athlete from using the athlete’s NIL for a commercial purpose when the athlete is not engaged in official team activities.
Access more information on HB 7806 here.
On May 6, 2021, Governor Henry McMaster signed Senate Bill (SB) 685, South Carolina’s NIL bill, into law. Intercollegiate athletes may receive compensation for the use of their NIL for third-party endorsements, the athlete's non-athletic work product or activities related to a business that the athlete owns.
The South Carolina law is set to take effect on July 1, 2022.
Postsecondary educational institutions, including technical or comprehensive educational institutions, are prohibited from:
- Directly or indirectly creating or facilitating compensation opportunities for the use of an intercollegiate athlete's NIL
- Using or allowing boosters to directly or indirectly create or facilitate compensation opportunities for the use of an intercollegiate athlete's NIL as a recruiting inducement or as a means of paying for athletics participation
- Directly or indirectly compensating a current or prospective intercollegiate athlete for the use of the intercollegiate athlete's name, image or likeness
- Adopting or maintaining a rule or other requirement that prevents or restricts a student athlete from:
– Earning compensation from the use of their NIL outside the athlete's participation in academic, athletic or team-mandated activities
– Note: compensation earned by an intercollegiate athlete for the use of their NIL may only be provided by a third party and may not represent payment for athletic participation or performance
– Obtaining an athlete agent for the purpose of securing compensation for the use of their NIL
The institution may:
- Prohibit the athlete from using their NIL for compensation if the proposed use conflicts with:
– Existing institutional sponsorship agreements or other contracts
– Institutional values as defined by the institution - Fund an independent, third-party administrator to support education, monitoring, disclosures and reporting concerning NIL activities
– Note: a third-party administrator cannot be a registered athlete agent
The institution must disclose known prohibitions for the use of an intercollegiate athlete's name, image or likeness at the time that an athlete is admitted to the institution or when the athlete signs a financial aid agreement or team contract.
Student athletes are prohibited from:
- Using the institution of higher learning's facilities, uniforms provided by the institution or the institution’s intellectual property, including but not limited to the unauthorized use of a registered trademark or product protected by copyright in connection with the use of the athlete’s NIL
- Earning compensation for the use of their NIL for the endorsement of:
– Tobacco
– Alcohol
– Illegal substances or activities
– Banned athletic substances
– Gambling, including but not limited to sports betting
Student athletes must:
- Abide by institutional and athletic department policies with respect to missed class time and good academic standing
– Note: good academic standing includes meeting both grade point average and course hour requirements. An intercollegiate athlete must also meet all academic requirements of the athletic association and conference that their institution is a member of in order to participate in NIL activities - Disclose the terms of a NIL contract prior to signing the NIL contract, including the proposed use of the intercollegiate athlete's name, image or likeness, compensation arrangements, the name of the athlete agent and a list of all parties to the name, image or likeness contract
– Note: NIL contracts must have a prominent disclosure at the beginning and end of the contract that an athlete must acknowledge separately. The disclosure must be worded to warn the intercollegiate athlete of potential eligibility issues that may exist under current rules and clearly identify the reporting requirements
All NIL contracts must provide for an unequivocal ten-day revocation period for the athlete and may not extend beyond an athlete's participation in an athletic program.
Access SB685 here.
On May 11, 2021, Governor Bill Lee signed House Bill (HB) 1351, Tennessee’s NIL bill, into law. The Tennessee law is set to take effect on Jan. 1, 2022.
Four-year public or private institutions, excluding an institution governed by the board of regents of the state university and community college system, are prohibited from:
- Being involved in the development, operation or promotion of a current or prospective athlete's NIL
- Maintaining a rule that prevents or restricts a student athlete from earning compensation through the use of their NIL
- Affecting a student athlete’s scholarship because the student athlete earns NIL-related compensation
An institution must:
- Conduct a financial literacy workshop for intercollegiate athletes during the athlete's first full-time term of enrollment. The workshop must cover, at a minimum, information related to budgeting and debt management.
An institution may:
- Adopt reasonable time, place and manner restrictions to prevent an intercollegiate athlete's name, image or likeness activities from interfering with team activities, the institution's operations or the use of the institution's facilities
- Prohibit an athlete's involvement in NIL activities that are reasonably considered to be in conflict with the values of the institution
- Prohibit use of the institution's intellectual property, including but not limited to its trademarks, trade dress and copyrights in the athletes' personal name, image and likeness activities
- Contract with qualified persons or entities to conduct the financial literacy workshop
An entity whose purpose includes supporting or benefitting the institution or its athletic program (e.g., boosters) may not compensate or cause compensation to be provided to a current or prospective intercollegiate athlete for the athlete's name, image or likeness if the arrangement is contingent on the athlete's enrollment or continued participation at an institution.
Student athletes may not enter into a NIL agreement if it conflicts or unreasonably competes with the terms of an existing agreement entered into by the institution. The agreement may not be in effect any longer than the duration of the athlete’s participation in an athletic program at an institution.
Student athletes are also prohibited from involvement in NIL activities that promote:
- Gambling
- Tobacco
- Alcohol
- Adult entertainment
A student athlete may:
- Obtain representation by a third party, including but not limited to an athlete agent for the purpose of securing compensation for the use of the athlete's NIL
– Note: any third-party representative of an intercollegiate athlete under this part shall be a fiduciary for the represented intercollegiate athlete. All athlete agents who represent intercollegiate athletes under this part for purposes of securing compensation for the use of the athlete's name, image or likeness must be licensed. Attorneys who represents an athlete must also be active and in good standing with the board of professional responsibility or equivalent entity in the state in which the attorney is licensed.
Student athletes must disclose any agreement and the terms of such agreement to the institution and file annual reports with the institution. The report must include:
- The identities of entities or persons who provide compensation to the athlete
- The amount of compensation received
- Any other information the institution deems relevant for determining such identities and compensation
Access HB 1351 here.
On June 14, 2021, Governor Greg Abbott signed Senate Bill (SB) 1385, Texas’ NIL bill, into law. The law took effect on July 1, 2021.
General academic teaching institutions and private institutions of higher education in Texas are prohibited from adopting or enforcing a policy that prevents a student athlete from:
- Earning compensation for the use of the athlete’s NIL when the student athlete is not engaged in official team activities
- Obtaining professional representation, including representation by an attorney licensed to practice in the state of Texas, for contract or other legal matters relating to the athlete’s NIL
- Providing or soliciting a prospective student athlete with compensation in relation to the prospect’s NIL
- Disqualifying a student athlete from being eligible for a scholarship, grant or similar financial assistance awarded by the institution
An institution must require student athletes to attend a financial literacy and life skills workshop at the beginning of the student’s first and third academic years at the institution. The workshop must be at least five hours in duration and include information on financial aid, debt management, time management, budgeting and academic resources available to the athlete. The institution may not allow any provider of financial products or services to:
- Market, advertise or refer the provider’s services to a student athlete
- Solicit a student athlete to use the provider’s services
Before entering into a NIL contract, student athletes must disclose any NIL-related contract to their institution’s designated official.
Student athletes may not enter into a contract for the use of their NIL if:
- Any provision of the contract conflicts with a provision of the athlete’s team contract, an institutional contract, a policy of the athletic department or honor code of the institution
- Compensation is provided:
– In exchange for athletic performance or attendance at the institution
– By the institution
– In exchange for property owned by the institution or providing an endorsement while using intellectual property or other property owned by the institution
– In exchange for an endorsement of: alcohol, tobacco products, e-cigarettes or any other type of nicotine delivery device, anabolic steroids, sports betting, casino gambling, a firearm that the student athlete cannot legally purchase or a sexually oriented business - The duration of the contract extends beyond the student athlete’s participation in intercollegiate athletics
Access SB1385 here.
Vermont Senate Bill (SB) 328 was introduced on Dec. 30, 2019 but not signed into law (it died in committee).
The bill proposed that any publicly or privately operated postsecondary institution within the state be prohibited from:
- Upholding any rule or other limitation that prevents a student of that institution from earning compensation as a result use of the student's NIL
- Providing a prospective student athlete with compensation in relation to the athlete’s NIL
- Prohibiting a student athlete from obtaining professional representation in relation to contracts or legal matters, including representation provided by athlete agents or legal representation provided by attorneys
- Proposing a new contract or renewing or modifying a contract that prohibits a student athlete from earning compensation
Student athletes must disclose any NIL-related contract to their institution’s designated official and refrain from contracts that conflict with a provision of the athlete’s team contract.
Access S.328 here.
On Aug. 10, 2021, Virginia Governor Ralph Northam passed House Bill (HB) 7001 as part of the budget proposal. The NIL law took effect immediately.
Public and private institutions of higher education in Virginia are prohibited from:
- Providing a prospective or current student athlete with compensation for the use of his or her NIL
- Preventing a student athlete from earning compensation for the use of his or her NIL
- Prohibiting a student athlete from obtaining professional representation by an agent athlete or legal representation by an attorney
- Affecting athletic scholarship because a student athlete earns NIL compensation
An institution may prohibit a student athlete from earning NIL compensation:
- While the individual is engaged in academic, official team or department activities
- If the proposed use of NIL conflicts with an existing agreement between the institution and a third party
- If the use is in connection with any of the following:
– Casinos or gambling, including sports betting
– Alcohol products
– Adult entertainment
– Cannabis, cannabinoids, cannabidiol (CBD) or other derivatives
– Dangerous or controlled substances
– Performance-enhancing drugs or substances (e.g., steroids, human growth hormones)
– Drug paraphernalia
– Tobacco and electronic smoking products and devices
– Weapons, including firearms and ammunition
Student athletes may not:
- Earn compensation in exchange for attendance at an institution or pay-for-performance
- Use an institution’s facilities, uniforms or intellectual property, including logos, indicia, registered and unregistered trademarks unless otherwise permitted by the institution
Student athletes must disclose NIL agreements prior to execution and in a manner designated by the student athlete’s institution.
Access HB 7001 here.
Washington House Bill (HB) 1084 was introduced on Jan. 14, 2019 but was not signed into law (it died in committee).
The bill proposed that any student may:
- Receive compensation for services actually provided, including but not limited to, payment for the use of the student's name, image or likeness, as long as the compensation is commensurate with the market value of the services provided
- Agree to be represented by an agent for any purpose
No person may:
- Prohibit or suspend any student from competing in an intercollegiate athletic competition or otherwise penalize a student because the student has received NIL compensation or agreed to be represented by an agent.
Access HB 1084 here.
West Virginia House Bill (HB) 2583 was introduced on Feb. 17, 2021 but was not signed into law (it died in committee).
The bill proposed that West Virginia universities and colleges that provide scholarships to students to participate in intercollegiate athletics be prohibited from:
- Upholding a rule that prevents a student athlete from earning compensation through the use of their name, image or likeness
- Revoking or affecting an athlete’s scholarship as a result of earning compensation from use of the student’s NIL
- Providing a prospective student athlete with compensation in relation to the student athlete’s NIL
- Preventing a student athlete participating in intercollegiate athletics from obtaining professional representation in relation to contracts or legal matters, including but not limited to, representation provided by athlete agents or legal representation provided by attorneys
– Note: professional representation must be licensed with the state of West Virginia. Agents representing student athletes shall comply with the federal Sports Agent Responsibility and Trust Act
Student athletes must disclose any NIL-related contract to their institution’s appointed official and refrain from contracts that conflict with a provision of their team’s contract. An institutional team contract cannot prevent a student athlete from using the athlete’s NIL for a commercial purpose when the athlete is not engaged in official team activities.
Access HB2583 here.
NCAA adopts interim name, image and likeness policy, National Collegiate Athletic Association
NIL legislation has not been proposed in the following states: Alaska, Delaware, Idaho, Indiana, Maine, North Dakota, South Dakota, Utah, Wisconsin and Wyoming.
College and university NIL readiness assessment
Compliance departments are navigating NIL in real-time as student athletes are already signing deals. Evaluate your institution's preparedness to address challenges, develop policies governing NIL that comply with your state's regulations and support the success of your student athletes. Respondents will receive a digital copy of our survey findings and guidance to manage NIL.
Baker Tilly can help
We can help your institution take a proactive approach to evaluate the current state of your policies, processes, internal controls and definitions related to athletics and NIL to identify opportunities that align with new and upcoming changes.
For more information, or to learn more about how Baker Tilly can help higher education institutions and student athletes with the changing NIL landscape and compliance, contact our team.