Saturday, July 3, 2021

NCAA Athletes Can Earn Compensation for Their Name, Image and Likeness

July 1 was the effective date of a bill passed by the Texas Legislature and signed by Texas Governor Greg Abbott that allows collegiate student-athletes in Texas to earn compensation for the use of their Name, Image and Likeness (NIL) in the commercial space.  

In addition, on June 28, the NCAA’s Division I Council formally recommended to suspend the association’s long-standing amateurism rules related to athletes earning from opportunities like endorsements and autograph signings.

On June 30, the NCAA Division I Board of Directors voted to approve the change, doing so just a day before Texas' legislation and an array of other state NIL laws went into effect on July 1.

The NCAA's policy went into effect on July 1 for Divisions I, II and III.

With a number of states putting their own NIL laws on the books for July 1, the NCAA hoped the federal government would step in before then and institute national standards, so rules did not differ on a state-to-state basis. That did not happen, so the NCAA put into place its “interim” measure until federal legislation or new NCAA rules are adopted.

As a result of the Texas legislation and the NCAA's action, TCU Athletics, its student-athletes and its fans have entered into a new age of college sports.

Texas joins many other states in taking this pivotal stance in the modernization of intercollegiate athletics. This may seem like a stark change to the amateurism model, but the TCU Athletic Department says that TCU's student-athletes are well positioned to further enhance their world-class TCU experience while earning their college degree.

The Texas State NIL Law has some key stipulations and parameters that are of importance to TCU Athletics boosters, who now are permitted to enter into an agreement with current TCU student-athletes in exchange for the use of their name, image and likeness.

Texas State NIL Law prohibits a student-athlete from entering into a contract for the use of the student-athlete’s name, image or likeness in exchange for an endorsement of:

  • Alcohol
  • Tobacco products
  • E-cigarettes or any other type of nicotine delivery device
  • Anabolic steroids
  • Sports betting
  • Casino gambling
  • A firearm the student-athlete cannot legally purchase
  • A sexually oriented business as defined in Section 243.002, Local Government Code

Texas State NIL Law also prohibits student-athletes from entering into a contract for the use of the student-athlete’s name, image or likeness if it conflicts with:

  • A provision of an institutional contract
  • TCU's significant partnerships/contracts
  • TCU's corporate sponsors
  • A provision of a team contract (e.g., Athletics Scholarship Agreement)
  • A policy of TCU Athletics (e.g., Rules and Guidelines for Student-Athletes)
  • A provision of the TCU Code of Student Conduct

In addition, boosters may not use NIL opportunities to assist TCU in recruiting. For instance, a booster cannot enter into an agreement with a student-athlete with the intention of securing the ehtlete’s enrollment at TCU

TCU and its staff members may not arrange for TCU’s student-athletes to participate in NIL contracts or activities. However, TCU may forward information about legitimate NIL-opportunities to its student-athletes for their consideration. This is primarily because the Texas State NIL Law precludes an institution from providing NIL compensation.

The TCU Department of Intercollegiate Athletics cannot directly assist those who want to engage in NIL activities with TCU student-athletes. However, the department can provide information and guidance related to the Texas State NIL Law. 

Direct questions to TCU Athletics Compliance: AthleticsCompliance@tcu.edu

FAQs related to the subject are available from TCU: here



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