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We’ve recently written to inform you about the new Transfer Rule being proposed by NCAA Division I, as well as the Name, Image, and Likeness proposals in all three NCAA divisions.

https://informedathlete.com/proposed-new-ncaa-di-transfer-rule/

https://informedathlete.com/ncaa-name-image-and-likeness-legislation-update-overview/

These proposals were originally going to be voted on at the annual NCAA Convention.

However, NCAA President Mark Emmert urged the governing bodies of Division I, II, and III to postpone the votes on these proposals.

There are various factors that have contributed to this delay including:

  • A lawsuit advancing to the US Supreme Court regarding whether the NCAA can limit the benefits that college athletes can receive which are related specifically to their education.
  • Increasing concerns are being shared by university and conference administrators regarding the proposal that a third-party administrator will manage student-athlete information about the “deals” (and compensation) the student-athletes might receive regarding name, image, and likeness.To imagine how a third-party administrator for NIL might work, any of you who have interacted with the NCAA Eligibility Center can think about a similar organization to manage Name, Image, and Likeness information for all NCAA student-athletes and ask yourself whether you think that would be efficient for your athlete.
  • Another reason for the postponement of these votes is the introduction in mid-December of two different bills in Congress that impact NCAA student-athletes. In the following segment of this newsletter, I’ll provide a bit of info about those bills.

Do You Have Questions?

If your athlete is considering a transfer and you would like to review and discuss the Transfer rules, you can schedule a confidential Transfer Consult online. You can also send an email to rick@informedathlete.com or call us at 913-766-1235.

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.

Employment

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.

Non-institutional Promotions

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 rick@informedathlete.com if you have any questions.

The NCAA Board of Governors recently received a lengthy 31-page report from the “Federal and State Legislation Working Group” suggesting broad recommendations for new rules that will permit student-athletes to receive compensation for the use of their name, image or likeness.

When approved, student-athletes will be able to accept payment within the NCAA rules for a wide range of activities. However, many details remain to be proposed, discussed and finalized.

Some of the basic guidelines for development of these new rules include:

  • Student-athletes will not be paid for these types of activities by their respective schools or conferences, or by the NCAA.
  • Student-athletes should have the same opportunities as the general student body to be compensated for their particular skills, ability, and name recognition except when there are compelling reasons to the contrary. (Examples: I’m sure that athletes will not be allowed to promote tobacco products, nor will underage athletes be permitted to endorse alcohol products.)
  • Education and progress toward a student-athlete’s degree must continue to be priorities. (Student-athletes will likely be prohibited from missing class to make a personal appearance, record a commercial or participate in any similar activity.)
  • Rules regarding these activities must be able to be enforceable and monitored for compliance with these rules (perhaps the hardest part of this whole concept in my opinion!!!).
  • Student-athletes will not be allowed to affiliate with a professional sports team and will not be allowed to receive compensation based specifically on their athletic performance (no prize money or compensation based on place finish in competition).
  • Rules must protect fairness in the recruitment of prospects or impermissible tampering with currently enrolled student-athletes.
  • A number of states have proposed or passed legislation within their own states to permit student-athletes to receive compensation for endorsement or promotional activities. The NCAA will be working with Congressional representatives to preempt state laws so that there can be consistency for all NCAA member institutions and their student-athletes.

Types of Activities that Will be Permissible for Student-Athletes Within the New Rules (pending approval):

Student-athletes will be allowed to receive compensation for:

  • Promoting local, regional or national businesses through personal appearances, appearing in commercials, or as social media “brand ambassadors.”
  • Modeling or signing autographs.
  • Their own creative endeavors such as acting, singing, or selling their artwork.
  • Giving private lessons or tutoring.
  • Conducting or providing research or class projects for or to private companies.

Much progress still needs to be made on establishing details and receiving feedback from various NCAA constituencies. However, the NCAA Board of Governors remain committed to having the three NCAA divisions prepare specific legislative proposals in time for the January 2021 NCAA Convention.

We will keep you updated as we learn more details and receive additional information.

Yesterday, the NCAA’s Board of Governors voted unanimously to begin the legislative process that will permit NCAA student-athletes to benefit from the use of their name, image and likeness “in a manner consistent with the collegiate model.”

This vote regarding the potential use of an athlete’s “name, image, or likeness” (commonly referred to as “NIL”) paves the way for student-athletes to potentially receive payment for their autographs, for personal appearances, and for their picture or image (and possibly their voice) to promote commercial products and services.

Developing these new rules will certainly be no easy task.

The Board in conjunction with a “Federal and State Legislation Working Group” has established a list of principles and guidelines to direct the work of the NCAA, conferences, and university representatives in all three divisions as they develop and propose appropriate legislation to be considered by NCAA member institutions.

Among these principles and guidelines are the following:

  • “Ensure rules are transparent, focused and enforceable and facilitate fair and balanced competition.”
  • “Protect the recruiting environment and prohibit inducements to select, remain at, or transfer to a specific institution.”
  • “Maintain the priorities of education and the collegiate experience to provide opportunities for student-athlete success.”

As you might imagine, I have many questions as to how this will play out over the coming months.

  • For example, how will the NCAA create rules that will allow campus compliance administrators to determine, much less enforce how much a student-athlete’s signature, personal appearance at an event, or use of likeness is worth?
  • How will standards be set such that universities with large alumni bases and/or that are located in large metropolitan areas with thousands of businesses won’t have a recruiting advantage over mid-major and smaller universities in the Midwest or great plains states because of the endorsement opportunities that will be available to athletes at those larger universities?

The Board of Governors has expressed a desire for each NCAA division to come up with new rules as soon as possible, but no later than January 2021. For the full NCAA press release, click on this link:  https://bit.ly/2JxUsu8.

We’ll keep you updated as we learn more.  In the meantime, if you have any questions call us at 913-766-1235 or send an email to rick@informedathlete.com.