We recently learned of student-athletes at an NCAA Division I university who have created GoFundMe pages to openly request donations for their living expenses.
This type of solicitation is NOT permitted as part of the NCAA’s new Name, Image and Likeness policy. In fact, the student-athletes described above have received an impermissible benefit and will likely need to repay the value they have received to a charity to have their competitive eligibility reinstated by the NCAA.
A student-athlete must provide some type of service or “deliverable” in exchange for receiving an NIL payment.
Examples can include a wide variety of activities, from doing a TV commercial for a car dealership to signing autographs at a store’s grand opening to appearing at a child’s birthday party for photo opportunities.
The NCAA has recently updated their Question and Answer document regarding the NIL policy.
- This document includes an update addressing the type of situation I’ve described above, as well as emphasizing that NIL agreements are not to be intended as a recruiting inducement (e.g., a booster guaranteeing an NIL opportunity once a recruit enrolls at their favorite university).
- The update also includes a recommendation that international student-athletes check with their designated school office for all international students regarding any potential tax implications and impact on their immigration status if they participate in NIL opportunities.
The Q and A document can be viewed through this link: