State of play: examining NIL laws and regulations today

Over a year has passed since student-athletes gained the right to enter endorsement deals with businesses across the country. The name, image, and likeness (NIL) era, as it has been termed, has caused both excitement and confusion. So, what laws, regulations, and policies apply to these NIL deals? Let’s take a look.

State laws control

Student-athletes’ right to monetize their NIL without losing NCAA eligibility is controlled by the NIL law in the state where their university is located. Their NIL rights, however, aren’t necessarily the only legal issue contemplated by their deals. They may, for example, enter a NIL deal that requires them to perform endorsement activities away from their university’s home state.

In such situations, the state law with the most significant relationship to the parties’ NIL deal may determine the extent of publicity rights and/or how vague contract language is interpreted. For this reason, careful drafting to address which state law governs the NIL deal is critical.

Comply with NCAA and university policies

A majority of state laws provide in-state universities flexibility to set their own school-specific restrictions on the NIL deals their student-athletes enter. Even in states without a NIL law, however, it’s in student-athletes’ best interests to follow their universities’ NIL policy. Moreover, the NCAA’s interim policy permits student-athletes to engage in NIL activities when their university is in a state without a NIL law.