NIL 101: WHAT DO YOU NEED TO KNOW ABOUT NIL DEALS

“Name, Image, and Likeness” (NIL) is a student athlete’s “right of publicity.” With NIL opportunities, student-athletes can enter into marketing and promotional deals to earn money. NIL deal options are incredibly diverse, providing athletes with choices on how they build their brand and become entrepreneurs. Examples of NIL deals include:

Appearing in commercials or advertisements
Signing autographs
Allowing an athlete’s name to be printed on jerseys
Permitting a computer-generated image of an athlete in a video game

WHAT ARE THE NCAA RULES REGARDING NIL?

National Collegiate Athletic Association (NCAA) rules require student-athletes to follow their state law or institutional policy if there is no existing state law governing NIL activities. Student-athletes receiving NIL compensation must disclose all proof of performance of NIL activity to their university’s compliance entity.

WHAT ACTIVITIES ARE NOT ALLOWED UNDER NCAA RULES?

Because state laws regarding NIL can be complex and vary from one state to the next, student-athletes need to pay careful attention to contracts to keep within NCAA and IRS requirements. However, there are a few key guidelines to follow regardless of which institution the athlete attends:

National Collegiate Athletic Association (NCAA) schools cannot engage in so-called “pay for play,” meaning students can’t receive compensation to play for a given team and can’t receive incentive-based achievements tied to athletic performance.
Any agreement between a student-athlete and an NIL entity may not be contingent upon initial or continuing enrollment at the institution.
Institutional coaches and staff may not communicate directly or indirectly with prospective student-athletes on behalf of NIL entities.
Student-athletes may not promote or receive compensation for NIL activities while participating in athletics and athletic-related activities.

More information about NIL NCAA rules is available by searching “NIL” at www.NCAA.org.

WHAT DOES A NIL DEAL LOOK LIKE FOR A STUDENT-ATHLETE?

NIL deals can involve a wide range of opportunities. Examples include:

Making social media channel posts.
Signing autographs and memorabilia.
Making personal appearances at businesses, conferences, camps, parties, and other events.
Appearing in TV, online video, and radio ads.
Participating in or offering student-run camps and private lessons.
Selling student-athlete-owned apparel and personal items.

IS THE H CONNECT COLLECTIVE AN ENTITY OF BLACK HILLS STATE UNIVERSITY OR SPEARFISH HIGH SCHOOL?

No. The H Connect Collective maintains a third-party status.

ARE DONATIONS TO THE H CONNECT COLLECTIVE TAX-DEDUCTIBLE?

Contributions to The H Connect Collective in exchange for providing NIL activities are NOT tax-deductible as charitable contributions; however, they may be tax-deductible as business marketing expenses.