Understanding the Legal Landscape of Name, Image, and Likeness for College Athletes

 

Name, Image, and Likeness for College Athletes

 

The topic of name, image, and likeness (NIL) rights for collegiate athletes has exploded onto the scene in recent years. With several states passing NIL. Legislation allowing student-athletes to profit off their NIL starting in 2021, the NCAA adopted an interim NIL policy allowing athletes across the country to benefit. This seismic shift has created both opportunities and challenges. Due to understanding the legal landscape around NIL.

 

In this blog post we’ll break down key aspects around NIL rights for student-athletes. We’ll cover:

 

• What are name, image, and likeness rights

• The changing NIL policies and laws NIL deal considerations for athletes

• The role of NIL lawyers and representatives

• Common NIL questions answered

 

Gaining clarity on these issues is essential, as the NIL space continues rapidly evolving.

 

Holon Law Partners has 100+ years of experience combined guiding clients through complex cases and legal intricacies. Our approach is empathetic, customized, and client-centered with a focus on you and your unique business needs. To schedule a consultation with us, call our team at  (866) 372-0726 or email us at: info@holonlaw.com.

What Exactly Are Name, Image, and Likeness Rights?

At its core, NIL refers to the right of an individual to control. And profit from the commercial use of their name, image, likeness, or persona. Whether appearing in an advertisement, merchandise item, social media post, or other context. NIL establishes protections over how a person’s identity can be utilized. For student-athletes, NIL rights empower them to benefit financially from sponsorship deals. As well as promotions, endorsements, and other activities related to their athletic skill and renown. In the past, stringent NCAA amateurism rules prevented athletes from entering any agreements that involved payment. But with updated NIL policies, student-athletes can now sign NIL deals and receive compensation, expanding their rights and opportunities.

The Changing Policies and Laws Around NIL

The transformation around athletes’ NIL abilities gained momentum from several key developments:

 

State NIL Laws – Several states including California, Florida, Alabama, and others began proposing bills in 2019. And in 2020 to grant college athletes NIL rights. With variations between states, these laws broadly enabled athletes to profit from their NIL and earn compensation. The July 2021 implementation of these state laws pressured the NCAA to update their long-standing policies.NCAA Interim

 

NIL Policy – In response to growing state laws allowing college athlete NIL compensation, the NCAA adopted a temporary policy lifting restrictions nationally as of July 1, 2021. Their interim policy granted athletes the ability to monetize NIL rights in alignment with their state’s guidelines and existing NCAA bylaws. This seismic shift opened the floodgates for athletes to finally expand financial opportunities.

 

Federal Legislation – While state laws and NCAA policies now permit NIL compensation, the background legal landscape remains complex and uneven nationally. Federal-level NIL legislation has been proposed to streamline standards, but has not yet passed. Unified federal laws could bring consistency for both athletes and schools. But NIL dynamism shows no signs of slowing even without Congress’ input.

 

The net effect is student-athletes across the country now possess expanded rights to financial opportunities leveraging their athletic reputations. But understanding the technical landscape remains vital.

Key Considerations for NIL Deals and Representation

For any college athlete, being aware of critical components with NIL deals is imperative:

 

• School Involvement – The NCAA’s interim policy initially restricted schools from being involved in facilitating NIL arrangements. But based on evolving legislation, many expect rules to soon allow schools to provide resources helping athletes identify and manage deals. Understanding what role your school can or cannot play is pivotal.

• Compliance Requirements – While NCAA amateurism rules have loosened, other compliance standards still apply around NIL deals. Athletes must report NIL activities to ensure no conflicts of interest or improper benefits arise violating NCAA bylaws. Keeping your school’s compliance office aware is essential.

• Business Considerations – Even with the NCAA permitting earnings, NIL laws still prohibit pay-for-play and require alignment to fair market value. Other basic business practices like filing taxes on earnings also apply. Operating with integrity and understanding basics of contracts, sponsors, taxes, and finances is key.

• Seeking Legal Counsel – Navigating NIL laws and NCAA standards remains complex. Connecting with nil lawyers well-versed in collegiate athletic compliance can provide vital support. They offer guidance around maximizing earning potential through compliant deals and contracts.

 

The decision to monetize NIL rights contains many variables for any student-athlete. Working through considerations deliberately and obtaining information is no simple process. But the expanding opportunities make it well worth understanding.

Why NIL Lawyers Matter in the Emerging NIL Era

With NIL laws and compliance creating a complex web to navigate, seeking counsel from sports and entertainment lawyers is highly advised. Attorneys well-versed in collegiate athletics can offer invaluable support:

• Reviewing potential NIL deals and contracts to ensure compliance standards are met, fair compensation is secured, termination provisions are established if needed, and athlete interests are protected.

• Communicating directly with your athletic compliance office to obtain approvals for proposed deals and report ongoing activities accurately.

• Negotiating directly with brands and companies to create NIL proposals or finalize sponsorship arrangements optimally structured for an athlete’s benefit.

• Filing legally mandated paperwork like taxes on NIL earnings to uphold financial responsibilities.

• Monitoring shifts in state legislation, NCAA policy changes, regulatory body guidance, and other issues impacting earning potential. Adaptations still occur regularly.

 

Having a knowledgeable guide to bounce ideas off, translate complex policies, handle administrative duties, and watch an athlete’s back is invaluable. The NIL landscape has welcomed a “Wild West” feeling with athletes racing to leverage opportunities and brands wanting easy association with athletes’ fame. But legal mastery brings order to the frenzy. With potential long-term career impacts at play, securing representation is prudent.

FAQs:

1. What are name, image, and likeness rights?

Name, image, and likeness (NIL) rights refer to the ability of an individual to control and profit from the commercial use of their name, image, likeness, or persona. For student-athletes, this means the ability to monetize their athletic skill and fame for financial gain.

2. How do I get an NIL deal?

Many avenues exist, from direct brand outreach seeing mutual value to working through an intermediary “collective” that brokers deals on an athlete’s behalf. Building your social media presence and polish pitching skills help attract interest.

3. What kind of NIL deals can I sign?

NCAA rules still prohibit pay-for-play scenarios directly linked to athletic performance. But signing autographs, endorsements, sponsored social media posts, personal appearances, operating a sports camp and more are all permitted, as long as you report the activities properly.

4. Do I need an nil lawyer to help with an NIL contract?

Strictly speaking you can sign basic NIL deals independently. But lawyers well-versed in compliance nuances will ensure your interests are fully protected while avoiding missteps. Their experience provides great value.

5. Will my school help me get NIL deals?

Evolving state and NCAA policies are expected to enable athletic departments to point student-athletes to compliant NIL opportunities soon if not already. But securing optimal deals will likely still involve personal entrepreneurship.

6. How much money can I make from my NIL rights?

No strict limits exist, but pay aligning to “fair market value” based on your visibility and audience reach does factor in. Significant opportunity awaits those able to translate athletic success and social media presence into tangible value for brands.

7. How did the laws around NIL change?

Several states began passing laws in 2019 and 2020 allowing college athletes to profit from their NIL. This pressured the NCAA to adopt an interim NIL policy in 2021 enabling athletes nationally to pursue NIL activities without losing NCAA eligibility.

 

Selecting an NIL Lawyer

Holon Law Partners has 100+ years of experience combined guiding clients through complex cases and legal intricacies. Our approach is empathetic, customized, and client-centered with a focus on you and your unique business needs. To schedule a consultation with us, call our team at  (866) 372-0726 or email us at: info@holonlaw.com.