NCAA Clarifies Stance On Permissible NIL Activities

Highlights

• The National Collegiate Athletic Association (NCAA) on Oct. 26, 2022, offered new guidance on Name, Image and Likeness (NIL) activities of universities, student-athletes (SA) and other entities supporting the NIL industry. In short, NIL relates to the commercial use of the publicity rights of student-athletes.
• The new rules continue to prohibit pay for play or for performance, which is an essential tenet to the NCAA's definition of amateurism. The proliferation of NIL deals and lack of regulation has created a need for the NCAA to clarify how institutions, SAs and NIL entities may operate within this space.
• Because this is an evolving area with additional clarifications likely to come in early 2023, legal counsel is essential to avoid entering arrangements that may be harmful to the university's compliance status, the SA's eligibility and the enforceability of a specific NIL arrangement.