As of July 1, 2021, NCAA student-athletes will be able to financially benefit from the use of their name, image, and likeness (“NIL”). The NCAA has adopted an interim name, image, and likeness policy (“NIL Policy”). The NIL Policy states that NCAA student-athletes may “engage in NIL activities that are consistent with the law of the state where the school is located.” In the event a student attends a school in a state without laws governing the use of name, image, and likeness, the student may still profit form the use of their name, image, and likeness provided that the athlete does not violate any NCAA rules. Student-athletes are allowed to use a “professional services provider” for NIL activities.
Indiana currently does not have laws or executive orders in effect which would apply to NIL activities by student-athletes attending school in Indiana. Indiana University, however, has issued its own NIL policy. IU’s policy allows student-athletes to “use their NIL in a variety of ways that may include, but is not limited to, promoting their own business, promoting or endorsing a corporate entity (e.g., a brand ambassador or social media influencer); conducting camps, lessons or clinics; making appearances; or signing autographs.” Student-athletes may receive compensation for these activities, including compensation from donors to IU and sponsors. Significantly, the compensation that is received must be for the “NIL activity” and “not a recruiting inducement or an inducement to remain enrolled at IU.” Student-athletes are prohibited from using their NIL to promote gambling, alcohol, tobacco, adult entertainment, substances banned by the NCAA, or products or services that are illegal. Student-athletes are obligated to disclose their NIL activities to IU Athletics through a form within ten (10) days following the activity.
The NCAA’s adoption of the interim NIL policy and Indiana University’s NIL policy represent a significant development for student-athletes. There will likely be additional changes to these polices and perhaps even the laws in Indiana and other states. Before engaging in NIL activities, student-athletes should carefully consider the laws of the state of the school they are attending, their school’s NIL policy, if any, and the terms of any contract that is being presented to them.
If you have questions regarding these developments or need representation for name, image, and likeness related activities, contact Ryan Heeb at Bunger & Robertson. Ryan can be reached at 812-245-6021 or rheeb@lawbr.com.