Michelle Steele discusses NCAA athletes making money off name, image, and likeness deals. She also talks with Wisconsin QB Graham Mertz about the topic. (1:56).Thursday marked the official opening of a new era in college sports. All NCAA athletes can now make money in a variety of ventures, without losing their eligibility.A combination of NCAA rule changes and state laws have eliminated prohibitions that prohibited athletes from selling their rights to names, images, and likenesses. After more than a decade in legal, political, and public pressure to allow athletes to access a larger share of the billions of dollar generated each year by college sports, this transformational shift is finally complete.There are many new opportunities for athletes, but it can be difficult to see the details. A confusing, complicated, and sometimes conflicting set guidelines govern the type of deals that athletes can make and the products they can endorse. This guide will help you understand NIL and how it will affect college sports.What is NIL?People often refer to their right to publicity as the individual's right of name, image, and likeness rights. In return for the permission to be featured in products or advertisements, NCAA athletes can accept money from businesses. Athletes will also be allowed to use their college status to promote themselves or their companies.All Americans have the right of selling their NIL. These rights were previously forfeited by athletes when they signed their scholarship agreements. This will not be the case.Who decides the rules?A dozen states have laws that govern how college athletes can make money from their names, images and likeness. Individual schools from states without a law have been instructed by the NCAA to create their own policies. These policies will be based on loose guidelines and are intended to stop pay-for-play agreements and recruitment inducements.Are schools allowed to pay athletes directlyNo. No. The NCAA rules and most state laws prohibit schools from paying athletes directly to use their NIL for any purpose.Are athletes allowed to enter into NIL deals with boosters?There are no NCAA rules restricting boosters from paying athletes, as long as the payments are not for their athletic performance or inducement to recruit. There are new state laws that address booster involvement. Some of these laws may need to be clarified before it becomes clear how involved boosters may be in the payment of athletes in those states.Is it allowed for schools to offer NIL opportunities to student-athletesSchools are not allowed to arrange deals for athletes under certain state laws. Although the NCAA rules do not allow schools to make such decisions, it warns schools that they need to avoid straying into areas that could be used to pay players or use NIL payments to recruit.Is there any other restriction on the income of athletes?Yes. Yes. Some places prohibit athletes from promoting alcohol, tobacco, or gambling products. Other restrictions apply to athletes' rights to use school logos or other copyright material in paid opportunities.A majority of states and schools prohibit athletes from signing deals that are in conflict with school sponsorship agreements. A basketball player for a Nike team would not be permitted to wear Adidas shoes during games. In most cases, however, the athlete can promote a non Nike shoe company when they are not participating in games or other activities.Is it possible for an individual to be required to report their name, image, and likeness activities to school?Many state laws have a time limit within which athletes must share details about any NIL deals with their school. Some states require that deals be approved by the school before they can be implemented. Although the NCAA rules do not require athletes to report their deals to schools directly, it is likely that schools will have policies that require disclosure.Why aren't all college athletes required to follow the same set of rules?In 2019, California passed a law that made it illegal for schools to prohibit athletes from earning money. This was the beginning of the NIL movement. Similar laws have been passed in nearly two dozen other states over the past two-years to ensure that their schools aren't left behind in recruiting top talent. Because of the lobbying efforts of local schools and the deep understanding of each state legislature about college sports, these lawmakers adopted different approaches to regulate the new market.The NCAA had hoped Congress would support it in passing a federal law to create a uniform standard for college athletes. However, members of Congress are still unable to agree on the details of a national law. If the NCAA creates its own NIL restrictions, it could face antitrust violations and be subject to legal action. For now, schools located in states without a federal law are responsible for enforcing their own NIL policies.Is there a set of universal rules for the future?Most likely, Congress will pass legislation that establishes a uniform NIL standard across all colleges for college athletes. Currently, Republicans and Democrats are split on what reforms they would like to see in a Congressional bill. Republicans want a narrow law that addresses NIL rights. Democrats want schools to provide greater medical coverage, academic benefits, and the ability for athletes to collectively negotiate in the future.NCAA officials stressed that the July 1 rule changes were temporary and they are still trying to figure out ways to give more guidance for the future.A Iowa fireworks store tweeted Wednesday that Jordan Bohannon, an Iowa basketball player, would sign autographs during a July 1, appearance. Jeffrey Becker-USA TODAY SportsWhat are the most lucrative activities college athletes can do to make money now?Expect athletes to be featured in advertising campaigns across the country; to partner with brands through social media channels to advertise; to start and teach youth sports camps; to launch their own businesses; to sell memorabilia; to make paid appearances at autograph signings or speaking events; and to use their NIL rights in many other creative ways.Who is in the best position to gain?College sports stars will be able to sign deals that amount to hundreds of thousands, if they are lucky. Other college athletes who have a large social media following can also make significant amounts of money. All college athletes will be able to earn smaller amounts or receive free food or meals for their efforts in promoting local businesses. Experts aren't sure how much college athletes will need to be in demand moving forward. However, this story provides an estimate of the value of the opportunities available to college athletes.Is this a sign that college sports video games will be returning with players?Perhaps. Video games use group licensing agreements to reach out to large numbers of athletes in order for them to obtain their NIL rights. Although college sports do not have unions, they often negotiate group deals for their athletes. Although current NCAA regulations don't prohibit group licensing, future rules could make it more difficult. Some companies are trying to form group licensing agreements with college athletes without the need for a union. EA Sports has also committed to bringing back college football in the future with or without players.What will this mean for fans?It won't. In local and national commercials, you will see athletes representing your favorite schools. As both schools and athletes try to navigate the new rules, there may be some disagreements. Many athletes and their supporters believe that the new NIL opportunities will increase fans' ability to interact with their favorite players, and learn more about their passions and who they are beyond their sport.
