Acker: New NIL Guidance Is ‘A Good Thing’
When NIL began in July of 2021 there was more confusion than understanding. Each state legislature passes its own version of the law that governs how NIL can run within its borders. The NCAA has largely been silent throughout the last year or so, with some schools asking for more guidance while others have dived right into a "wild west" where boosters use NIL as a cover for blatant pay-for-play, which is still against NCAA rules and depending on payment terms and process, could be illegal.
Today the NCAA took a small step in issuing more guidance on NIL, what is allowed and what is not.
The NCAA has stated that they are receiving notifications of possible rule-breaking and will investigate all claims diligently. At this time, no announcement has been made of any schools under investigation or suspicion of breaking rules related to NIL.
The guidance document can be viewed here.
The NCAA begins with: "Effective July 1, 2021, the NCAA adopted the Interim Name, Image and Likeness (NIL) Policy allowing NCAA student-athletes the opportunity to benefit from their NIL without jeopardizing their NCAA eligibility. A November 2021 question-and-answer document clarifies that schools may not use NIL transactions to compensate student-athletes for athletics participation or achievement or as an improper inducement."
The NCAA continues to call its current policy around NIL "interim" but does not offer a timeline for a more permanent solution.
A lot of the conversation has surrounded Collectives. Typically, a group of alums form a company meant to benefit students through coordinating NIL efforts with businesses. The top concern is around these collectives' involvement with recruiting and promises to high school prospects. In other cases, the potential coordination between programs at schools and these collectives has raised concerns.
The NCAA in this guidance dedicates an entire section to collectives and impermissible behavior;
• Athletics department staff member (or company owned by staff member) representing enrolled SAs for NIL deals, including securing and negotiating deals on behalf of the SA.
• Any individual or entity acting on behalf of the athletics department (e.g., third party rights holders, third-party agents) representing enrolled SAs for NIL deals, including securing and negotiating deals on behalf of the SA.
• Institution entering into a contract with SA for the sale of products related to SA’s NIL.
• Conference and SA revenue sharing: Broadcast revenue, NIL revenue.
• Staff members who own businesses separate from the institution, providing NIL deal with a SA.
• Institutional coach compensating SA to promote coach’s camp.
• SAs receive compensation directly or indirectly for promoting an athletics competition in which they participate.
It is important to note, there is nothing new in this guidance. Clarification, maybe, but there appears to be no implication that this interim policy will have a permanent replacement soon, or that those currently breaking rules within this guidance are a top priority of the board.
In a comment to Maize & Blue Review, U-M Regent Jordan Acker said the following regarding the guidance:
"I think this doesn't fundamentally change things for most schools--the structure of each school's collective will matter a lot, but for a school like Michigan that is committed to its values and rules, it is a good thing, and clarifies for our coaches, staff, and student-athletes what they can and cannot do. What will be most interesting are the way schools adapt to what's quickly becoming known as the 'in-house agency,' and how schools clarify their relationships with collectives. This will go a long way toward that clarity. That said, one rule I do not expect to exist in five years is the restriction on revenue sharing."
Admins at universities across the country are handling this current NIL landscape in the way they feel is best. Whether that is prepping for a future they think is not far around the corner or taking advantage of what is perceived by some to be a free for all market. Time will tell, but the clock keeps ticking.
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