NIL Update: Recent Legislation/Developments Provide New Compensation Opportunities For Student Athletes

While America waits for federal legislation, states, businesses, boosters, and charities are seizing the opportunity to lay the foundation on student athlete compensation.

On July 1, 2021, the NCAA's new Name, Image, and Likeness ("NIL") policy took effect. The temporary policy allows student athletes to receive compensation for their NIL—an unprecedented rule that opened the door for athletes to receive approved monetary compensation at the collegiate level. Although the policy allows student athletes to be paid for NIL, the policy still forbids "pay-for-play" and "impermissible inducements." Pay-for-play is when the student athlete gets paid directly for performance in a sport. Impermissible inducement is when a student athlete is paid for the reason of inducing a decision for the benefit of the inducer and/or university. The policy also allows student athletes to hire agents, as long as it is solely for the purpose of NIL representation. Without federal law in