NCAA Clarifies NIL Directives
By Cam Van
The NCAA Division I Board of Governors on October 26, 2022, unanimously voted to change the NCAA’s NIL (Name, image, and Likeness) policy. These new clarifications limit a school’s role in assisting and promoting NIL deals for their student-athletes. Now that institutions are out of the NIL-obtaining process, student-athletes must navigate the NIL environment without help or approval from both the NCAA and their institution. Essentially, the NCAA is leaving it up to the student-athletes and the student-athletes alone to figure it all out.
More specifically, the new guidelines allow for schools to “inform student-athletes about potential NIL opportunities,” and can even work with NIL groups to create a “marketplace” that connects student-athletes with NIL opportunities. However, schools can no longer assist or engage in negotiations on behalf of a NIL group or student-athlete to make any specific NIL deals happen. So, schools can help create an atmosphere where NIL deals can be made, but they can’t actually negotiate for a student or a NIL group. Schools must have a hands-off approach to NIL deals. Below is a breakdown of what schools can and can’t do in light of this updated policy.
Schools Can
Provide stock photos or graphics to student-athletes and NIL entities.
Arrange space on campus for a NIL entity and student-athlete to meet.
Facilitate NIL marketplaces for NIL entities and student-athletes.
Promote a student athlete’s NIL activities as long as the student-athlete or NIL entity pays for the advertisement.
Schools Cannot
Provide free services like graphic designers, tax preparation, or contract review to student-athletes unless those same services are available to all students generally.
Offer equipment like cameras, graphics software, or computers, for NIL activities unless they are also available for all students generally.
Allow students to promote their NIL activity while participating in required athletics activities like pre and post-game activities, court celebrations, and news conferences. So no student-athlete-sponsored sports drinks at the winners’ table.
Violations
The board suggests that the focus of the new NIL guidance “is not intended to question the eligibility of enrolled student-athletes.” That being said, the guidance asserts that whenever the enforcement staff catches wind of a violation, the enforcement staff will presume that there was a violation unless the school can prove otherwise. It is unclear whether they will do the same for student-athletes, so student-athletes should tread lightly.
The guidance as a whole seeks to pull schools away from engaging in NIL dealing, but still allows some wiggle room for schools to operate in the NIL world. Student-athletes should work with a trusted advisor or agent when navigating the field, as schools no longer can offer guidance when it comes to NiL issues. We’ll keep you updated with any important updates as they come.