Key Takeaways
This month, the NCAA Division I Council approved a proposal to address student-athlete protections related to name, image and likeness (NIL) deals. The proposal will become effective August 1.
The adopted protections include:
The council also introduced a new proposal that relates to school involvement in NIL activities. The proposal creates a framework for this involvement in four key ways. First, the proposal would remove national restrictions regarding the level of support provided by schools and their third-party providers, meaning that under the new proposal, schools could help identify potential NIL opportunities and facilitate these deals. Second, the proposal defines an NIL entity as “an individual, group of individuals, or any other entity (for example, a collective) organized to support the athletics interest of an NCAA school or group of schools by compensating student-athletes for NIL activities on behalf of itself or another third party.”[2] Third, the proposal eliminates regulations governing certain communications between schools and NIL entities regarding enrolled student-athletes. Finally, the proposal prohibits any NIL entity from engaging in any communication with (or providing any benefits to) a prospect or potential transfer until that prospect or potential transfer “signs a letter of intent, participates in summer activities[,] practices with the team, or enrolls at the school and attends classes.” According to a statement from the NCAA,[3] the proposal “should better support student-athlete decision-making and stabilize some of the current challenges associated with NIL activities.”
The proposal could be adopted as early as April and has the potential to pave the way for new opportunities as well as obstacles for athletes, administrators and advertisers. BakerHostetler’s interdisciplinary approach to NIL matters provides administrators, athletes, advertisers and collectives with the opportunity to fully understand their deals while also providing the necessary legal protections. To stay updated on all NIL- and sports industry-related matters, please contact Industry Marketing Lead Cynthia Keveney at ckeveney@bakerlaw.com.
[1] Press Release, NCAA, Division I Council Approves NIL Disclosure and Transparency Rules (Jan. 10, 2024), available at https://www.ncaa.org/news/2024/1/10/media-center-division-i-council-approves-nil-disclosure-and-transparency-rules.aspx.
[2] Id.
[3] Id.
