What is NIL?

College athletes weren’t always allowed to make money off their athletic ability. It wasn’t until 2021 that the NCAA changed rules to allow students to profit from their name, image and likeness — otherwise known as NIL.

What exactly is NIL?

“NIL” stands for “name, image and likeness.” It refers to a person’s legal right to control how their image is used, including commercially. In college, student-athletes have long been prohibited from making deals to profit from their fame, so they forfeited their NIL rights by signing on with college sports teams. A combination of NCAA rule changes and state laws restored NIL rights to college athletes, and they’ve been making sponsorship deals ever since.

Who oversees the deals?

A combination of school policies and state laws dictate what deals athletes can make. In states with no oversight, the NCAA has universities write policies for their own athletes. Some common school requirements are that athletes get business advice or training before making deals or preventing them from promoting certain products. State laws are primarily focused on preventing NIL deals from being used as recruitment tools. Schools can’t pay students directly, but some states have murky laws surrounding just how involved a school’s booster club can get.

Do athletes get agents or business advisors?

Yes, every athlete is allowed to hire professionals to help with marketing, legal issues, tax laws and other business dealings. Many schools also offer training and resources to athletes directly, often in the form of early-season classes on NIL law and basic business practices.

Do athletes have to report deals to their school or another authority?

Most colleges have policies that require athletes to report the details of any potential deals with their schools, and some must get school approval before signing. Several schools reserve the right to keep their athletes from advertising certain products, like drugs and alcohol.

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