Thanks to a NCAA interim policy change and a 2021 state law, Florida student-athletes—including high schoolers—can monetize their name, image, and likeness (“NIL”). This change will allow student athletes to earn money through endorsement deals, advertising contracts, and more.
What Does the Law Say?
Florida, like many other states, passed NIL legislation which came into effect on July 1, 2021. The legislation is like that of other states’ laws, as well as the NCAA’s interim NIL policy, in that, among other things, student-athletes will be able to be paid for use of their NIL without risking eligibility or scholarships.
The Florida law has a few requirements worth noting:
- Any attorney representing an athlete must be in good standing with the Florida Bar;
- NIL agreements may not extend beyond the athlete’s eligibility; and
- Schools must provide financial literacy workshops for the athletes.
Each Florida school can implement its own policy in accordance with the law. The University of Florida (“UF”) was the first school to publicly release its NIL rules. Some key sections of their policy include:
- NIL opportunities may not conflict with academic or team related activities;
- Rights must be secured from Gator Sports Properties, the multimedia rightsholder and sports marketing arm for the University Athletic Association that collaborates with UF, for use of any University or athletic department marks and logos;
- Prohibition of association with gambling and sports wagering vendors or any vendors associated with athletic performance enhancing drugs;
- All agreements must be disclosed within four days but is expressly not an approval process; and
- Representation by agents must be limited to NIL and may not include future professional athletic contract negotiations; the duration of a contract for representation of a student-athlete or compensation for the use of NIL may not extend beyond the athlete’s participation in the collegiate athletic program.
Included in these guidelines is a provision that stated that university boosters “may not compensate or arrange compensation to a current or prospective intercollegiate athlete for her or his name, image, likeness.” Notably, other states and universities allow school boosters to offer endorsement deals and compensation to students.
New Opportunities for High Schoolers
In June 2024, the Florida High School Athletic Association (“FHSAA”) unanimously voted to permit NIL deals for high school athletes. Now it is up to the Department of Education to approve the new measure. If approved, high school student athletes could begin receiving NIL deals as early as the 2024-2025 season.
While the FHSAA copied many of the NCAA and state law provisions, high school NIL contracts will have stronger restrictions. For instance, parents and guardians are responsible for negotiating NIL deals on behalf of their student-athletes. High schoolers also may not earn money from a NIL while using their school’s intellectual property, which includes uniforms, logos, or equipment. Other limits include bans on:
- Collegiate NILs as an enticement to attend a particular school;
- Accepting an NIL deal after an in-season school transfer without a good cause exception from the relevant school district;
- Schools setting up “college-style” NIL collectives that collect funds from donors to facilitate deals; and
- Deals with adult entertainment, alcohol, tobacco and vaping products, cannabis and related substances, controlled substances and prescription drugs, gambling and related organizations, weapons and ammunition, or political or social activism organizations.
What Has Happened So Far?
While the high school NIL measure has yet to be approved, collegiate athletes quickly utilized the NIL laws in Florida within the first four weeks of its enactment. University of Miami Quarterback, D’Eriq King, was amongst the first college athletes to cash in on the NIL laws. On the first day that NIL benefits were allowed in Florida, King signed three separate endorsement deals, with College Hunks Hauling Junk Moving Company, Murphy Auto Group, and the Wharf – an open-air bar. Rather than using a state licensed attorney or agent, King was represented by his 25-year-old brother turned manager.
The Florida Panthers, of the National Hockey League, were the first professional American sports franchise to get involved in collegiate NIL deals. The franchise set up a program in which the Panthers will offer merchandise to college athletes that sign up, along with opportunities for college-athletes to earn money through social media marketing campaigns. These athletes get paid either per social media post or per campaign. This was the first opportunity for student-athletes to partner with a professional sports team. The Panthers also value diversity and ensured that female athletes were part of the program. This program allows the athletes to use a professional sports team as an extension of influencer marketing.
Conclusion
As NIL laws are rapidly being implemented, Florida has seen the positive impact that NIL laws have upon not just the student athletes but also the universities and local businesses. It is likely that high school athletes will soon see the benefits. If you need assistance developing an appropriate policy to comply with state law or you are an athlete, school, or business looking for guidance on complying with the NCAA rules and state law, contact our attorneys.
Contributions to this blog by Joseph Ford.
