NCAA Moves Closer to Allowing Student-Athlete NIL Compensation

After years of fighting a losing battle (in federal court and the court of public opinion), the NCAA is moving away from its inexplicable reliance on the 1950s definition of “amateurism” and moving into the 21 century. Yes, the NCAA is deregulating. The NCAA Board of Governors has recommended that student-athletes, like non-athlete students, can profit from their name, image, and likeness (NIL), starting in 2021. The three NCAA divisions are expected to adopt NIL rules by January 2012 with implementation by the 2021-22 academic year.

What Do The Recommendations Provide?

While the recommendations open up a new playing field, they also contain various “guardrails.”

- Student-athletes can sell autographs, receive compensation for personal appearances, or benefit financially from other athletic/non-athletic endeavors. They can retain representation (agents) to handle the deals. However, agents cannot seek professional sports opportunities for student-athletes while the student-athlete is in school.

- Student-athletes are permitted to identify themselves by sport and school, but are prohibited from using school or conference branded apparel in their financial pursuits. For example, the star running back on the football team may agree to sign autographs for a fee at the grand opening of a local business. However, the student-athlete could not wear branded apparel during the appearance. Student-athletes can also profit from side-businesses (e.g., musicians, social media influencers, etc.).

- Student-athletes must disclose to their athletic department the financial terms of their contracts and relationships with the parties involved. Failure to do so could leave the student-athlete ineligible.

- Schools/boosters cannot pay for NIL activities (e.g., “pay for play” or recruit student-athletes).

The NCAA kicked and screamed as long as it could. After California passed its Fair Pay to Play law in September 2019, numerous other states followed California’s lead and passed/proposed similar legislation. The NCAA responded by asking Congress to step in and stall the states while the NCAA worked on its own proposal. The next step for the NCAA is to fully implement the proposal.