Status

What We Discovered

Texas state law prohibits high school student-athletes from monetizing their NIL. 

State and high school leaders were forced to re-evaluate their stance in 2021 when five-star quarterback Quinn Ewers decided to forgo his senior season of football in Texas to enroll at Ohio State, due in part to restrictions on his high school NIL opportunities (more than $1 million at the time).

While state and high school leaders continue to prohibit NIL as of June 2024, it is clear education surrounding the topic continues to grow more important.

The Texas High School Coaches Association partnered with Eccker Sports in May 2022 to ensure coaches and administrators across the state have vetted and timely information they need to discuss NIL with their student-athletes.

Summary

College

NIL Law: Senate Bill 1385

Abstract| Full Law | Passed: 6/10/2023 | Effective: 7/1/2023

HB 2804, effective on July 31, 2023, prohibits any governing body in collegiate athletics from preventing universities in Texas from participating in or allowing any NIL activity allowed in their state law. The bill includes vice industry restrictions and requires schools to provide at least five hours of financial literacy and life skills training during their freshman year. Schools and boosters are allowed to facilitate deals for athletes.

Summary

High School

High school athletes are prohibited by state law from monetizing their NIL. Both the UIL (governing public school athletics) and TAPPS (governing private school athletics) reinforce this restriction in their bylaws. 

Bylaws | The UIL Constitution and Contest Rules

Excerpt | Section 441: Amateur Athletic Status

(a) NOT AN AMATEUR. For purposes of competing in an athletic contest, a student in grades 9-12 is not an amateur if that individual, within the preceding 12 months:

(1) except as provided otherwise in this section, received money or other valuable consideration for participating in a UIL sponsored school sport;
(2) received valuable consideration for allowing his or her name to be used in promoting a product, plan or service related to a UIL sport or contest; or
(3) accepted money or other valuable consideration from school booster club funds for any non-school purpose.

Memo from the UIL on 8/3/2021 reemphasized their stance on a high school athlete’s NIL participation.

Bylaws | TAPPS Constitution

Excerpt | Section 103- Amateur Athletic Status

An amateur participates in athletics for the aesthetic, physical, mental, and social benefits derived there from. There­fore, the purpose of such partici­pation is playing for the intrinsic rewards rather than for valuable consideration. The amateur rule is a safe­guard against exploitation and commercialization of high school students. It poses a responsibility on the student at all times (whether in school or outside school) to abide by the letter and intent of amateurism. Schools are charged with the responsibility of informing students of all applicable subsections of this rule and enforcing this rule. Administrators and coaches must insure that athletes receive only services specifically permitted by written rule. Any breach of the rule undermines the educational goals of interscholastic athletics.

I. NOT AN AMATEUR. For purposes of competing in an athletic contest, a student in grades 9-12 is not an amateur if that individual, within the preceding 12 months received money or other valuable consideration for participating in a TAPPS sponsored school sport or received valuable consideration for allowing his or her name to be used in pro­moting a product, plan, or service related to a TAPPS contest or accepted money or other valuable consideration from school booster club funds for any non-school pur­pose.

II. EXCEPTIONS:

A. Seniors may sign a letter of intent or scholarship agreement which contains the con­ditions of a scholarship with a post-secondary institution.

B. For purposes of competing in an athletic contest, the par­ticipant school, school dis­trict or a student’s parent(s) may provide medical examination and services, athletic insurance, transportation and other travel expenses incurred in competing away from home, or supplies and services during and in connection with a game or practice period.

C. Participant schools may permit student athletes to attend contests by permit admission through a pass gate.

III. STATUS REGAINED. If a student did not realize that accepting the valuable consideration was a viola­tion of the amateur rule, and returns the valuable consideration within 30 days after being informed of the violation, that student may regain athletic eligibility as of the date the valuable consideration is returned. If a student fails to return it within 30 days, that student remains ineligible for one year from when he or she accepted it. During the period of time a student is in possession of valuable consideration, he or she is ineligible for all varsity athletic competition. Any games or contests in which the student participated during that time may be forfeited as the minimum penalty.

IV. TEAM VIOLATION. If the team violates this section, the penalty shall be assessed against the team and not against each individual.