What is prohibited under NIL?

First, it's important to understand that the NIL rules prohibit certain types of compensation and endorsements. Specifically, student-athletes cannot receive compensation for their athletic performance or participation, such as payment for wins, statistics, or playing time.

What is a NIL violation?

Name, image and likeness (or NIL) are the three elements that make up “right of publicity”, a legal concept used to prevent or allow the use of an individual to promote a product or service.

What can NIL money be used for?

NIL refers to the use of an athlete's name, image, and likeness through marketing and promotional endeavors. This can include autograph signings, product endorsements, social media posts, and more.

What are the negatives that can come from NIL deals?

Can schools be involved in NIL?

School Support of NIL Activities: The proposals remove some of the existing restrictions on schools' involvement with enrolled students' NIL activities. The proposed rules also subject third-party entities that are affiliated with an NCAA member institution to the same NIL standards and regulations imposed on schools.

What is NIL and where did it come from? A quick history of the NCAA

What can athletes not do with NIL?

Things College Athletes Can't Do Under NIL

Simply put, this means that you cannot be compensated strictly for your athletic performance. It also means that you cannot receive money or benefits with the aim of influencing your decision to sign with a particular school.

Can a high school kid get a NIL deal?

Soon after the NCAA allowed college athletes to be paid through NIL deals, California became the first state to allow the same opportunities to go to high schoolers. Since then, at least 30 states and Washington, D.C., have passed legislation legalizing NIL contracts in K-12 schools.

Are there any restrictions on NIL deals?

Is there a limit on how much I can make with NIL? There is no limit on how much money you can make with NIL deals. Be sure to understand how your NIL earnings might affect your student-athlete financial aid packages.

Why are people against NIL?

Critics argue that the newfound emphasis on individual marketing opportunities might divert resources and attention away from supporting less popular sports or athletes outside the limelight. This could potentially widen the gap between sports programs and weaken the overall college sports ecosystem.

Why should NIL not be allowed?

The focus may shift from team success to individual success, resulting in a decline in the overall quality of college sports. Moreover, there is a worry that NIL could lead to exploitation of student-athletes. While some athletes may be able to secure profitable deals, others may not have the same opportunities.

Who pays taxes on NIL money?

Generally, any money, goods, property, or services received from NIL activities are all considered forms of taxable income. Student-athletes should be mindful that NIL agreement income (including non-cash benefits or compensation) is reportable and is considered taxable income.

How NIL is ruining college sports?

Objectors say NIL creates an unnecessary distraction for teams, pitting athletes against one another as if scholarships and other perks weren't already doing that.

What are the ethical issues with NIL?

The Case against NIL as an Ethical Issue

Critics argue that allowing athletes to profit from their name, image, and likeness blurs the line between amateur and professional sports, potentially compromising the integrity of college athletics and undermining the educational mission.

How many states is NIL legal in?

As of mid-February, 39 states have passed, currently/previously proposed, or plan to propose NIL legislation. Currently, six have passed NIL legislation at the state level (California, Florida, Colorado, Nebraska, New Jersey, and Michigan).

Can non athletes get NIL?

The answer is that it depends on the state's NIL rules, but generally, non-student athletes may find it challenging to get NIL deals due to their lack of exposure and fame.

How did Tennessee violate NIL?

University officials declined to comment Friday but its chancellor revealed Jan. 30 in a scathing letter to Baker that the association was alleging Tennessee violated NIL rules through deals made between athletes and a booster-funded NIL collective that supports Volunteers athletes.

What is controversial about NIL?

Critics argue that if athletes are allowed to enter into endorsement deals and other commercial ventures, it could lead to a shift in focus from the game itself to individual branding and self-promotion. This could undermine the spirit of amateurism and team dynamics that have traditionally defined college athletics.

Who is the richest college athlete?

Bronny James is the most paid and famous college athlete. The young basketball player is the son of the NBA Los Angeles Lakers forward LeBron James. Bronny has enjoyed the spotlight since birth, thanks to his famous dad. The young star plays for the Trojans at the University of Southern California.

What sports benefit most from NIL?

Basketball players have a greater opportunity to be drafted into the NBA, which allows them to sign lucrative contracts and draws attention from sponsors who are willing to pay for their NIL deals. Baseball and football are also popular sources of NIL deals, though not to the same extent as basketball.

Does NIL money have to be disclosed?

Student-athletes will be required to disclose to their schools information related to NIL agreement exceeding $600 in value, no later than 30 days after entering or signing the NIL agreement.

Do NIL deals get taxed?

Any income from NIL activities, including non-cash, is considered taxable income.

Who has the biggest NIL deal in college football?

1 – Shedeur Sanders, QB, Colorado – $4 Million. Shedeur Sanders committed with Travis Hunter to Jackson State when his dad was the coach there.

Can high school athletes make money off NIL?

Notes: In May 2022, the CIAC Board approved a proposed language change to include NIL in the Amateur Athletic Guidelines. The new language allows high school student-athletes in the state to monetize their NIL while maintaining their eligibility.

How many states allow NIL for high school?

As of November 1, 2023, there are 33 states and the District of Columbia that permit high school athletes to enter into NIL deals.

Can high school athletes profit off NIL?

Over the last two-plus years, more than half of all U.S. state high school athletic associations have begun to allow student-athletes residing within their borders to profit from their NIL, placing those high school students on somewhat equal footing with their collegiate counterparts.