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Proposed Division I Rule Changes Involving Student-Athlete NIL Activities

The below sections provide the text of proposed new Division I rules or Division I rule amendments concerning NIL. Click on each section to learn more about each proposal and how it may affect student-athletes, member institutions, and third parties.

  1. Bylaws: Amend 22.1.1 as follows:

22.1.1 Institutional Involvement in Student-Athlete Name, Image and Likeness. An institution or an entity owned, controlled, funded or operated by the institution may: 

(a) Enter into a written license and/or endorsement agreement for the use of a student-athlete’s name, image or likeness, or other rights, other than a license or agreement that authorizes payment for the right to use a student-athlete’s name, image or likeness for a broadcast of collegiate athletic games or competitive athletic events, for a period not to exceed the student-athlete’s period of eligibility (see Bylaw 12.8).  However, if an institution and a student-athlete agree to the institution’s use of the student-athlete’s name, image or likeness to promote its academic or athletics program in content created while the student-athlete is enrolled, the institution may, pursuant to the agreement, continue the use of such content after the student-athlete’s eligibility has expired;

(b) Act as a marketing agent for a student-athlete with respect to noninstitutional name, image or likeness contracts. A parent, guardian, lawyer, or other competent representative may assist the student-athlete in discussions regarding entering into an exclusive or nonexclusive license or endorsement agreement, unless the student-athlete waives in writing the assistance of a parent, guardian, lawyer, or other competent representative.

22.1.1.1 No Guarantee of Third-Party NIL.  An institution shall not provide a written or oral guarantee to a student-athlete of a third-party NIL contract or payment. A guarantee is any written or oral statement that the institution will be responsible for such contract or payment if not fulfilled by the third party.

22.1.1.1.1 Exception -- Guaranteed Third-Party NIL Prior to July 1, 2025. If prior to July 1, 2025, an institution guaranteed a third-party NIL contract or payment to a student-athlete for the 2025-26 academic year, such guarantee is permissible and will count against the institution’s benefits cap unless and until the student-athlete receives NIL payments from the third party up to the guaranteed amount.

  1.  Bylaws: Amend 22.1.3 as follows:

22.1.3 Involvement of Associated Entities or Individuals in Student-Athlete Name, Image and Likeness Activities.  An associated entity or individual shall not enter into an agreement with or provide payment to a prospective student-athlete or student-athlete unless the agreement or payment terms, as determined by the name, image and likeness clearinghouse, are for a valid business purpose related to the promotion or endorsement of goods or services provided to the general public for profit, with compensation at rates and terms commensurate with compensation paid to similarly situated individuals with comparable name, image and likeness value who are not prospective student-athletes or student-athletes of the institution.

[21.1.3.1 through 21.1.3.2 unchanged.]

22.1.3.3 Deployment of Rights as a Valid Business Purpose.  An NIL agreement or payment with an associated entity or individual must include direct activation of the student-athlete’s name, image and likeness rights.  In other words, the acquisition of such rights without reasonable specificity of the NIL activation (e.g., description of the specific group licensing categories, the student-athlete’s obligations related to the activation, timing and ultimate use of the student-athlete’s NIL) may not satisfy the requirements for payments by associated entities or individuals.

C. Bylaws: Amend 22.2.2 as follows:

22.2.2 Reporting of Noninstitutional Name, Image and Likeness Activities. A student-athlete (including a student-athlete who attends an institution that is not a member of a defendant conference in the House settlement or does not provide additional benefits contemplated by the settlement) shall report all noninstitutional name, image and likeness contracts or payment terms, including those involving associated entities or individuals, with a total value of $600 or more to the designated name, image and likeness clearinghouse for review. If an individual enters into multiple agreements or receives multiple payments from the same or substantially the same third party, including any affiliates or parties with common ownership, such activities must be reported if the aggregate value is $600 or more during the student-athlete’s period of eligibility. 

[22.2.2.1 through 22.2.2.4 unchanged.]

22.2.2.5 Prospective Student-Athletes. Prospective student-athletes shall be required to disclose all noninstitutional name, image, and likeness contracts or payment terms as follows:

22.2.2.5.1. Initial Enrollees (High School or Two-Year College Prospects). Prospective student-athletes initially enrolling at a Division I institution (e.g., high school prospects, junior college prospects) shall report all noninstitutional name, image, and likeness contracts or payment terms with compensation of $600 or more that have been executed or agreed upon from the first day of classes of the prospect’s junior year in high school or the date of initial enrollment at a two-year college. If an individual enters into multiple agreements or receives multiple payments from the same or substantially the same third party, such activities must be reported if the aggregate compensation is $600 or more during the established reporting period.

22.2.2.5.2. Four-Year College Transfers. Prospective four-year college transfers shall report all noninstitutional name, image, and likeness contracts or payment terms with compensation $600 or more that have been executed from the date in which the student-athlete’s name was officially entered into the NCAA Transfer Portal. A transfer who has previously reported a deal that will remain in place upon transfer shall not be required to resubmit the deal. If an individual enters into multiple agreements or receives multiple payments from the same or substantially the same third party, such activities must be reported if the aggregate compensation is $600 or more during the established reporting period.

22.2.2.5.3. Timing of Reporting. All incoming prospective student-athletes must report noninstitutional name, image and likeness contracts or payments no later than either 14 days after initial full-time enrollment at a Division I institution, or prior to the institution’s first scheduled contest against outside competition, whichever occurs first.

22.2.2.5.4. Attestation. As part of initial registration and onboarding, prospective student-athletes will be required to attest that all third-party NIL contracts or payments have been or will be reported to the clearinghouse.

Bylaws: Amend 22 as follows:

22 Name, Image and Likeness Activities

22.1 Student-Athlete Name, Image and Likeness Activities.

22.1.3 Involvement of Associated Entities or Individuals in Student-Athlete Name, Image and Likeness Activities. An associated entity or individual shall not enter into an agreement with or provide payment to a prospective student-athlete or student-athlete unless the agreement or payment terms, as determined by the name, image and likeness clearinghouse, are for a valid business purpose related to the promotion or endorsement of goods or services provided to the general public for profit, with compensation at rates and terms commensurate with compensation paid to similarly situated individuals with comparable name, image and likeness value who are not prospective student-athletes or student-athletes of the institution. Raising money to induce student-athletes to attend or participate in intercollegiate athletics at an institution does not satisfy the valid business purpose requirement for making NIL payments to student-athletes.

22.1.3.1 Request for Information Related to Valid Business Purpose. The College Sports Commission (CSC) may require student-athletes or the entities with whom they seek to enter NIL agreements to provide information and documentation to establish compliance with the requirements, including an associated entity or individual’s efforts to profit from the NIL deal. Refusal to provide this information or the provision of insufficient information to establish compliance may result in NIL deals not being cleared by the CSC

22.1.3.2 Valid Business Purpose of Contract or Payment Terms With Nonprofit or Charitable Organization.  A name, image and likeness contract or payment terms involving a noninstitutional nonprofit or charitable organization may be considered to have a valid business purpose only if the contract or payment terms:

(a) Originate with funding from the nonprofit or charitable organization; and

(b) Involve the student-athlete participating in an activity for which the primary purpose is to raise funds to support the organization’s bona fide charitable mission. A bona fide charitable mission may not include supporting the institution or its athletics program in any form, or supporting a prospective student-athlete or student-athlete.

22.2 Reporting and Clearinghouse Review of Name, Image and Likeness Activities.

22.2.2 Reporting of Noninstitutional Name, Image and Likeness Activities. A student-athlete shall report all noninstitutional name, image and likeness contracts or payment terms, including those involving associated entities or individuals, with a total value of $600 or more to the designated name, image and likeness clearinghouse for review. If an individual enters into multiple agreements or receives multiple payments from the same or substantially the same third party, including any affiliates or parties with common ownership, such activities must be reported if the aggregate value is $600 or more during the student-athlete’s period of eligibility.

22.2.2.2 Timing of Reporting. A student-athlete shall submit written documentation of deal terms to the name, image, and likeness clearinghouse within five business days of execution or agreement to payment terms.

22.3 Professional Service Providers.

22.3.1 Representation for Purposes of Name, Image and Likeness Activities. An individual may use professional services, including agent representation, for the purpose of name, image and likeness activities. Business arrangements related to representation for purposes of name, image and likeness activities (e.g., travel expenses associated with meeting) shall be consistent with arrangements between the professional service provider and other prospective or current clients and align with industry standards.

22.3.2 Facilitation of Payments. A professional service provider (e.g., agent, multimedia rights holder acting as a marketing agent, marketing agency) may assist in facilitating payments for name, image and likeness contracts or payment terms to a student-athlete, provided the entity that will use the student-athlete’s name, image and likeness rights for the promotion or endorsement of its goods or services provided to the general public for profit is the originating source of the compensation and not the professional service provider. 

Rule Modification Regarding NCAA Bylaw 12.8.1

Consistent with Article 4, Section 3(a) of the Injunctive Relief Settlement, an NCAA rule modification shall be adopted to ensure a student-athlete’s eligibility to receive benefits, pursuant to the Injunctive Relief Settlement, shall be consistent with NCAA Bylaw 12.8.1, as may be further modified in the future.

Rule Modification Regarding NCAA Bylaws 14.2.2 and 14.4.3

Consistent with Article 4, Section 3(b) of the Injunctive Relief Settlement, an NCAA rule modification shall be adopted to ensure a student-athlete’s eligibility to receive benefits, pursuant to the Injunctive Relief Settlement, shall be consistent with the NCAA’s academic eligibility requirements for competition, i.e., Bylaw 14.2.2 (Full-Time Enrollment) and Bylaw 14.4.3 (Progress-Toward-Degree Requirements), as may be further modified or expanded in the future.

Rule Creation Regarding Clearinghouse Guidance

Consistent with Article 4, Section 3(c) of the Injunctive Relief Settlement, an NCAA rule shall be adopted that governs a student-athlete’s ability to seek guidance from the clearinghouse before entering a proposed NIL agreement or offer involving an Associated Entity or Individual, and to revise and re-submit such an agreement after it is initially submitted. This option to revise and re-submit allows a student-athlete to make necessary modifications to the proposed Associated Entity or Individual NIL agreement or offer to ensure such agreement or offer is in compliance with NCAA rules governing the review of such NIL agreements, pursuant to the Injunctive Relief Settlement.

Rule Creation Regarding Student-Athlete Eligibility from Non-Compliant Agreement

Consistent with Article 4, Section 3(d) of the Injunctive Relief Settlement, NCAA rules shall be adopted that ensure a student-athlete has the ability to terminate and/or modify a proposed/executed NIL agreement rather than risk his or her eligibility. Specifically, if the Designated Enforcement Entity upholds the decision that the agreement is not compliant, a student-athlete has the ability to submit such proposed/executed agreement to a neutral arbitration for final determination, pursuant to the Injunctive Settlement Agreement. If the neutral arbitrator upholds the Designed Enforcement Entity’s determination and the student-athlete has already accepted any payment under the non-compliant agreement, the student-athlete has the option to return compensation or consideration received and to modify the non-compliant agreement going forward in a timely manner in order to expunge any violation of NCAA rules upheld by the neutral arbitrator, pursuant to the Injunctive Relief Settlement.

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