Most of you are probably aware that in response to legislation being proposed in many states across the country, the NCAA has proposed their own set of rules regarding opportunities for athletes to be compensated for the use of their name, image, or likeness.
These proposals will be voted on at the upcoming NCAA Convention in January, and if approved, will take effect August 1, 2021.
The proposals differ between Division I, Division II and Division III, so we won’t describe the various proposals in great detail. However here is an overview of the proposed legislation for Division I student-athletes since those athletes receive the most media exposure and will be more likely to benefit from such opportunities.
Current or prospective student-athletes will be able to establish their own business and will be able to actively promote their own business.
Current student-athletes will be able to promote and offer fee-for-lesson instruction, or conduct their own camp or clinic. If they use their university facilities to provide instruction, they will need to rent the facilities in the same manner as the general public.
Autographs, Memorabilia, Crowdfunding
Current or prospective student-athletes will be able to receive compensation for their autograph.
Current student-athletes will not be able to sell items provided by their university until they are no longer eligible for collegiate competition.
Current and prospective student-athletes will be allowed to crowdfund for limited educational expenses or for charity.
Current or prospective student-athletes will be able to receive compensation for promoting a commercial product or service. Universities will not be allowed to assist in arranging such opportunities.
Certain categories of products and services will be prohibited (such as promoting tobacco products or gambling).
A university will be allowed to prohibit current student-athletes from promoting certain products or services that conflict with university sponsorship arrangements. For example, a university that has a shoe contract with Nike will be allowed to prohibit their student-athletes from promoting Adidas or Under Armour.
Agents or Professional Service Providers
The term “agent” will be defined as an individual who is marketing an athlete to be drafted by a professional team or signed to a professional athlete contract.
Individuals or services who market athletes for their name, image, or likeness opportunities (separate from being a professional athlete) will be referred to as “Professional Service Providers” (PSP).
A PSP may not also act as an “Agent” for professional athletic participation.
A student-athlete using a PSP must pay the same fees as the industry standard and can’t receive a discount because of their athletic ability. A university employee or an independent contractor aligned with a university can’t act as a PSP.
A university can’t choose or recommend PSP’s for their student-athletes.
Disclosure to a Third-Party Administrator
The NCAA will establish an independent third-party administrator to manage name, image, and likeness information.
Current and prospective student-athletes will be required to disclose to the NCAA’s third-party administrator any types of promotional activities they are part of. This will include providing contact information and compensation arrangements for such activities.
Remember that these new rules won’t take effect until August, 2021. Contact us at 913-766-1235 or send an email to email@example.com if you have any questions.