NCAA Seeks To Clarify, Redefine Boundaries For Student-Athlete NIL Deals
Wednesday, October 26, 2022 at 08:15PM By Barry Janoff
October 26, 2022: The NCAA said today that its Div. I Board of Directors voted unanimously to clarify how schools can be involved with the Interim Name, Image and Likeness activities of enrolled student-athletes on their campuses.
The new guidelines — “recommended by a membership working group and supported by the Div. I Council” earlier this month — is “intended to clarify how existing NCAA rules apply to the interim policy for name, image and likeness, specifically how the current rules relate to Div. I member schools' involvement in NIL activities.”
In addition to approving the new guidance for member schools, the board unanimously adopted a proposal for new allegation and conclusion standards when potential violations related to the interim policy occur.
For any violations that occurred before this additional clarification, the board directed the enforcement staff to review facts of individual cases but pursue only cases that are clearly contrary to the interim policy.
"The NIL landscape is constantly evolving, and the Board of Directors decided it was important to offer further guidance with respect to a number of key questions that have arisen recently," Jere Morehead, chair of the board and president of the University of Georgia, said via the organization.
"As we continue to reinforce current NCAA rules, we expect to offer further guidance in the future on what should and should not be done when engaged in these activities. We are committed to fostering a fair and appropriate NIL environment that supports our students and complies with our rules."
Lynda Tealer, chair of the NIL Working Group and executive associate athletics director at Florida, said via the NCAA that "the new guidance may require institutions and key stakeholders to modify practices, and some disentanglement may be necessary."
Effective July 1, 2021, the NCAA adopted the "Interim Name, Image and Likeness Policy" allowing NCAA student-athletes the opportunity to benefit from their NIL without jeopardizing their NCAA eligibility.
Since then, national and local companies have employed student-athletes in a variety of marketing platforms.
Among them are Hershey’s Reeses University, Fanatics, adidas, Nike, Gatorade, Tom Brady’s Brady brand, Outback Steakhouse, BioSteel and Dr Pepper. NBC Sports has a NIL division, Athlete Direct. The Pac-12 has aligned with Opendorse and Twitter to facilitate NIL deals for its student-athletes.
However, without strict supervision, some activation was seen as going beyond the boundaries of the NIL’s intended use.
A November 2021 NCAA guidance clarified that “schools may not use NIL transactions to compensate student-athletes for athletics participation or achievement or as an improper inducement.”
In May 2022, the NCAA Div. I board released additional guidance related to the NIL interim policy stating that “institutional coaches and staff may not organize, facilitate or arrange a meeting between a booster/NIL entity and a prospective student-athlete or communicate directly or indirectly with a prospective student-athlete on behalf of a booster/NIL entity.”
Today, the board said that schools “generally can and should provide education to current student-athletes, including on topics like financial literacy, taxes, social media practices and entrepreneurship.
“Schools also can provide NIL education to collectives, boosters and prospects.”
They cannot, however, “engage in negotiations on behalf of an NIL entity or a student-athlete to secure specific NIL opportunities.”
In addition, the board said that — when permitted by applicable state laws — “schools can and should require student-athletes to report NIL activities to the athletics department.”
The board said schools can inform student-athletes about potential NIL opportunities and can work with a NIL service provider to administer a "marketplace" that matches student-athletes with those opportunities.
The latest guidelines also clarify that “member schools can promote student-athletes' NIL activities, provided the student-athlete or NIL entity pays the going rate for that advertisement (for example, on a video board during a game).”
However, schools cannot allow student-athletes to promote their activity while participating in required athletics activities (such as pre- and post-game activities, court celebrations and news conferences).
Reeses UniversityThe board also clarified that “school personnel (including coaches) can assist an NIL entity with fundraising through appearances or by providing autographed memorabilia, but cannot donate cash directly to those entities.”
School staff members also cannot be employed by or have an ownership stake in an NIL entity.
Schools can request donors provide funds to collectives and other NIL entities, “provided the schools do not request that those funds be directed to a specific sport or student-athlete.”
In addition, schools can provide tickets or suites to NIL entities through sponsorship agreements, provided the terms of those agreements are the same as for other sponsors.
But “those same assets cannot be offered as an incentive to provide funds to an NIL entity.”
NCAA NIL Directive Targets Boosters
NCAA To Investigate Possible NIL Violations
Pac-12 NIL Deal Shows Growth Of Student-Athlete Marketing
Back to Home Page