NCAA Clarifies How Schools Can Be Involved with NIL

Last Wednesday, October 26, 2022, the NCAA Division 1 Board of Directors released updated guidance to clarify how schools can be involved with NIL activities of enrolled student-athletes.

The guidance addressed what is permissible and impermissible when it comes to an athletic department’s involvement in NIL activity. While new rules will not be enacted, the guidance does clarify the role a school can play, including examples of prohibited activities.

“The NIL landscape is constantly evolving, and the Board of Directors decided it was important to offer further guidance with respect to a number of key questions that have arisen recently,” said Jere Morehead, chair of the board and president of the University of Georgia.

View the full release here, and take a look at some of the updated guidelines:

Schools can provide NIL education to collectives, boosters, and prospects. The board also noted that — when permitted by applicable state laws — schools can and should require student-athletes to report NIL activities to the athletics department.

Under the interim policy, schools can inform student-athletes about potential NIL opportunities and can work with an NIL service provider to administer a “marketplace” that matches student-athletes with those opportunities. They cannot, however, engage in negotiations on behalf of an NIL entity or a student-athlete to secure specific NIL opportunities.

Notably, administrators are not allowed to seek or negotiate contracts for athletes. Conference and athlete TV revenue sharing is also impermissible. And an athlete is prohibited from using their NIL to promote a sporting event.

A member school is not able to provide financial support to an NIL collective – groups of boosters and businesses – have an athletic department staff member employed by the booster-run organization or provide an incentive to drive funds to a collective.

The board also clarified that school personnel (including coaches) can assist an NIL entity with fundraising through appearances or by providing autographed memorabilia but cannot donate cash directly to those entities. School staff members also cannot be employed by or have an ownership stake in an NIL entity.

Schools can request donors provide funds to collectives and other NIL entities, provided the schools do not request that those funds be directed to a specific sport or student-athlete.

Lynda Tealer, chair of the NIL Working Group and executive associate athletics director at Florida, emphasized that “the new guidance may require institutions and key stakeholders to modify practices, and some disentanglement may be necessary.”

So what is permitted under the new directives?

Essentially, the permissible guidance is aligned with other NCAA rules regarding extra benefits not offered to all students. For example, while a school is not able to facilitate an agreement, they can provide stock photos or videos to an athlete. Schools cannot provide free contract review services to athletes, however, unless it is made available to the general student body, too.

As for enforcement, the board directed the enforcement staff to review the facts of individual cases but pursue only cases that are clearly contrary to the interim policy. The board reiterated its previous position that the focus of its NIL guidance is not intended to question the eligibility of enrolled student-athletes.

Finally, the board received a report about the benefits and challenges related to the use of an independent, third-party administrator to collect student-athlete disclosures of NIL activities. The board decided not to take action on that item at the time of the meeting.

For more like this on the latest happenings with NIL, please visit EcckerSports.com.