The Latest on the NCAA's National NIL Proposal

In less than a year, collegiate athletics, which have remained mostly unchanged for more than a century, have undergone unparalleled transformation.

However, in June 2021, the name, image and likeness (NIL) have played a significant role in this transformation following the Supreme Court ruling in NCAA v. Alston which ruled the NCAA could not restrict payments to student-athletes linked to their education. Prior to the ruling, only scholarships were provided to student-athletes. 

In places where regulations hadn't been passed, the NCAA then deferred to the institutions themselves and to state laws regarding NIL.

According to the NCAA, there could be no pay-for-play and no quid pro quo. It wasn't allowed for athletes to get pay based on their performance, and it was illegal for recruits to sign contracts that required them to attend a particular university.

NIL was initially approved by the NCAA in 2021. The regulations controlling how college athletes can generate money by using their name, image, and likeness will be put to a vote by the NCAA's governing bodies as early as January.

The proposals will be voted on in January by two of the NCAA groups that oversee Division I, the association's top level of competition. The proposals are the result of conversations between the council's NIL Working Group and different stakeholders, including college athletes, service providers, and campus administrators, at a summit in July.

The NCAA is trying to implement a national NIL standard due to the different laws in every state. States like Texas and Oklahoma both prohibit the NCAA from regulating NIL deals.

The plan would require athletes to notify their universities of any NIL contract worth more than a specific sum, which the NCAA indicated could be $600. If they reached a NIL agreement, they would have 30 days to take that action.

The idea states that agents and financial advisors who engage with athletes on NIL transactions would be entitled to register with the association. The NCAA would then make this information public so that athletes could, for example, determine how much those services would cost.

Under the new proposal athletes would be able to evaluate their experience with these agents and report any wrong doings against them with the NCAA.

Schools and student-athletes would be required to attest as part of the reporting process that the information is complete and accurate, that no school staff members offered benefits pertaining to NIL as an incentive for enrolling or continuing at a school, and that all relationships adhere with NCAA rules and applicable federal, state, and local laws.

The NCAA wants to install trainings for their athletes so they can learn about NIL. Trainings would include how state and federal laws interact with the association’s policies.

“Division I members support college athletes benefiting from the use of their name, image and likeness to the fullest extent, and in no way intend to limit their potential” said University of Florida executive associate athletics director Lynda Tealer. “It is our hope that these changes will improve outcomes for student-athletes and help campus leaders navigate this issue with greater clarity.”

The final proposal, which will be taken into consideration the following year, would create a thorough plan to create educational resources, which would then undergo regular evaluation to make sure they are current and representative of the NIL setting.

About Schneider Downs Higher Education Services

The Schneider Downs Higher Education industry group is a dedicated team of experienced professionals specializing in serving institutions from high schools to universities. Our experience in audit and assurance, tax advisory, technology and data and more allow our professionals to stay ahead of the latest trends, developments and challenges within the education sector and provide timely and practical solutions to our clients. 

To learn more, visit our Higher Education Industry Group page. 

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at [email protected].

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2024 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

our thoughts on
Preparing for Financial Responsibility Rule Changes
Managing University Costs: Strategies for Examining and Identifying Savings Opportunities
Pell Grant Program Facing Shortfall
2024 Policy Shifts: Essential Updates Every College Should Know
Gainful Employment Disclosures in Higher Education
Protect Your Students, Faculty and Staff: 3 Common Cyber Attack Methods to Watch Out for in 2023
Register to receive our weekly newsletter with our most recent columns and insights.
Have a question? Ask us!

We’d love to hear from you. Drop us a note, and we’ll respond to you as quickly as possible.

Ask us
contact us

This site uses cookies to ensure that we give you the best user experience. Cookies assist in navigation, analyzing traffic and in our marketing efforts as described in our Privacy Policy.