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On June 30, 2021, the NCAA issued its official guidelines allowing student-athletes in all three Divisions to receive compensation for their name, image, and likeness (“NIL”). This guidance took effect today, July 1, 2021, as some states have passed NIL laws also set to effectuate today. While the NCAA’s principles set the baseline standards for both student-athletes and institutions, they are superseded by any relevant state law and/or conference/institutional policies.
Due to these quick changes, many schools are left wondering as to the extent of their role in this new process, and how to ensure they remain compliant with all relevant policies, laws, and regulations. Importantly, the NCAA guidelines created no deadlines for institutional implementation. That being said, student-athletes have already begun to take advantage of these policy changes, signing lucrative NIL contracts with different entities.
The new NCAA NIL guidelines have numerous serious implications for both schools and student-athletes. Schools and student-athletes in states where NIL laws have become applicable, or will soon become applicable, should also be wary of any additional requirements or limitations. In light of these new guidelines, it would behoove schools to finalize their NIL policies and procedures as expediently as possible, that meet NCAA policy requirements, as well as any relevant laws/regulations.
If you have any questions about proper NIL guidelines for your school, please contact Rob Seiger at 856-816-0331 or firstname.lastname@example.org, or Ashley Rotchford at 856-616-2683 or email@example.com.
DISCLAIMER: This client advisory is for general information purposes only. It does not constitute legal or tax advice, and may not be used and relied upon as a substitute for legal or tax advice regarding a specific issue or problem. Advice should be obtained from a qualified attorney or tax practitioner licensed to practice in the jurisdiction where that advice is sought.