Lawmakers in several states, including Arkansas and Texas, are taking steps to remove challenges preventing college athletes from capitalizing on their fame and success by signing endorsement deals. Endorsement deals allow student-athletes to accept sometimes extraordinary amounts of money for ad campaigns. These new laws aim to allow schools and their fundraising organizations to be directly involved in securing and paying for athletes' name, image, and likeness (“NIL”) opportunities. The laws aren't only designed to create financial opportunities for athletes; they also seek to benefit athletic departments and protect them from potential NCAA enforcement actions.

What Will the New Laws Do?

These laws will allow universities the authority to engage in NIL activities, despite certain NCAA restrictions. This means universities can now actively participate in securing endorsement deals for their athletes. In some states, including Arkansas, Texas, and Colorado, athletic fundraising foundations affiliated with universities are now permitted to enter into NIL agreements with athletes. These athletic fundraising organizations are heavily established with donor networks, athlete relationships, and alignment with athletic department goals to collaborate with college athletes, meaning they can utilize their existing networks to connect athletes with sponsorship opportunities. This approach helps avoid competition among different entities seeking sponsorship dollars and brand relationships, benefiting both athletes and universities.

NCAA Compliance and Guidelines

NCAA has voiced concerns over these new laws. While the new laws may damper NCAA's control over NILs, its guidelines still have authority. NCAA has held firm that entities acting on behalf of universities (such as fundraising organizations discussed above) cannot directly pay athletes for NIL. While state legislation, like that in Texas, could make NCAA guidelines hold less scrutiny, universities believe they can both comply with current NCAA guidelines and explore working with athletes on NIL endorsements.

Is a Federal Law on the Horizon?

Universities, their athletic departments, and athletes have been advocating for federal legislation that would bypass NCAA regulations and establish a uniform national standard for NIL. California spearheaded this effort on the state level in 2019 by passing the Fair Pay to Play Act which prohibited the NCAA from punishing a student for profiting from their NIL. While some states are pursuing their own laws governing NIL, efforts to pass federal legislation are underway.

Are You an NCAA Student-Athlete in Conflict with the NCAA or University Over Your NIL?

If you are an NCAA athlete, you have spent your life training to earn your spot on a prestigious team. If you are in a dispute with your university or the NCAA about the use of your NIL, you need to act. You deserve to use the NIL you have worked so hard to curate. Attorney Joseph D. Lento has extensive experience dealing with issues specific to NCAA-student athletes. No matter where you are in the United States, the Lento Law Firm can assist. Contact us today at (888) 535-3686 for help.