NIL is still a very new concept in the world of high school and college sports. With its newness comes a few grey areas on what athletes can and can’t do when monetizing their NIL.
Here are a few things that athletes can’t do when monetizing their name, image and likeness.More importantly, athletes should keep an eye out for any school or businesses that approaches them with the following impermissible NIL moves:
Things Athletes Can’t Do With NIL
Accept money without producing a product or service. All NIL deals must include quid pro quo, which is the Latin term for “something for something“. A prospect or student athlete must be able to provide a service (such a social media promotion, product endorsements, autograph signing, etc.) or a product (branded merchandise, books, etc.) in exchange for cash. Otherwise, you are receiving what is considered an impermissible extra benefit as defined by the NCAA.
Your NIL deals can’t be tied to performance or achievements. That’s right, if you receive any type of offer that pays you more based off of your individual performance, or team wins, this is an illegal agreement. NIL partnerships cannot include performance-based payments or incentives, period.
Inducements are not allowed. A recruiting inducement is an incentive offered to only some athletes as a way to influence their decision to attend a particular college or university. Inducements are banned from the NCAA.You guessed it- recruiting inducements are not permissible.
Schools can’t enter NIL deals with their own athletes. This might seem simple, but all NIL deals must be made between athletes and outside agencies or outside brands.
Conflict with school brands are not permitted. In some cases, athletes cannot enter into a partnership that conflicts with school contracts or values.
Endorse certain products. With NIL partnerships, athletes cannot endorse business or entities that sell tobacco, alcohol, gambling, banned athletic substances, or illegal substances.
There are also different rules depending on where schools are located, meaning rules differ from state to state. Make sure when being recruited, being approached by businesses, or entering into partnerships that you do your research. If a deal seems weird or too good to be true, it might just be.