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Name, Image, and Likeness

©Alex Sinatra 2025

The Founding of the NCAA

NCAA History

  • Founded in 1906 as the Intercollegiate Athletic Association of the United States and changed its name in 1910 to the National Collegiate Athletic Association (NCAA)

  • This association was needed because of a lack of uniformity among collegiate athletics and the lack of athlete safety

  • There were many athlete deaths during practices and athletic contests

  • NCAA created rules and regulations to govern intercollegiate athletics and were meant to create an equal-playing field devoid of unfair advantages where athletes would be safe to compete in a collegial environment

Name, Image, & Likeness

Amateurism

Amateurism

Student-athletes shall be amateurs in an intercollegiate sport, and their participation should be motivated primarily by education and by the physical, mental, and social benefits to be derived.

What's an Avocation?

Avocation

Avocation

A hobby or minor occupation as opposed to a vocation which is a person’s employment or main occupation, especially regarded as particularly worthy and requiring great dedication.

20-hour rule has exceptions

20-hour rule

Limits the amount of time student-athletes are allowed to practice and participate in “countable” activities.

Many of the activities that aren’t countable take up huge blocks of time from the student-athlete’s schedule: traveling to and from competition sites, attending banquets, and fund-raising activities or public relations/promotional activities and community service projects.

NCAA v Alston

NCAA's court battle

  • The case involved former West Virginia University athlete Shawne Alston who filed suit in the Northern District of California against the NCAA, SEC, ACC, Big 12, Pac 12 and Big Ten

  • He claimed the defendants “conspired to contain costs thereby fixing the value of full grant-in-aid in violation of Section 1 of the Sherman Act.”

  • Alston seeks two things: 1. to certify a class of similarly situated student-athletes who competed from February 2010 to the present and 2. monetary damages (which are trebled under antitrust laws) and to enjoin the NCAA from enforcing their bylaws that cap full grant-in-aid.

What does this mean?

For decades, the NCAA imposed rules on NCAA athletes that restricted them from receiving certain benefits from their athletic endeavors while playing for an NCAA school.

SCOTUS

College athletes were also restricted from monetizing off their Name, Image, & Likeness and in many instances, restricted from being entrepreneurial and starting any sort of business.

NCAA is not immune

The Ruling

By limiting education-related compensation that college athletes are permitted to receive from their schools, the NCAA is acting in violation Section 1 of the Sherman Antitrust Act, which prohibits any “contract, combination, or conspiracy in restraint of trade or commerce.”

SCOTUS unanimously upheld a ruling by the U.S. Court of Appeals for the Ninth Circuit that struck down NCAA caps on student-athlete academic benefits (i.e. reimbursements and pay for academic-related expenses) on antitrust grounds.

March 2021

NCAA responds

The NCAA always argued if athletes could monetize their likeness then they would not be amateurs anymore and it would ruin college athletics.

The background

This was always a flimsy argument and when the NCAA lost in Alston, they knew they needed to change some rules. Antitrust rules now officially applied to the NCAA.

The law of the land

June 14, 2021, Texas passed a Name, Image, Likeness (NIL) law for their colleges and institutions. It became effective July 1, 2021

Updated law: Texas House Bill 2804, went into effect July 1, 2023

TX NIL law

(https://www.huschblackwell.com/newsandinsights/texas-name-image-and-likeness-law-now-effective)

What's allowed?

Products & Services

  • earn compensation for the use of the student athlete's name, image, or likeness

  • obtain professional representation

Restrictions

Prohibitions

Athletes cannot promote:

  • 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, or a sexually oriented business
  • products in violation of school rules or team rules

Schools cannot:

  • use NIL deals to induce players to come to the school
  • act as an athlete agent for the athlete
  • be compensated by the student athlete or third party for providing the assistance
  • attempt to influence the student athlete's choice of professional representation in connection with an opportunity
  • attempt to diminish the student athlete's opportunities from competing third parties

Contract requirements

Contracts

The Contract cannot:

  • extend beyond the student athlete's participation in the intercollegiate athletic program

The Student athlete:

  • must present the contract to their athletic department before signing the contract

Texas amending the law

Amendments

High School athletes: HB 1802

-HS athletes cannot monetize their NIL without losing NCAA eligibility, but HB 1802 would allow some UIL HS athletes to monetize if they are 18 or older

-Did not make it into law. (https://legiscan.com/TX/votes/HB1802/2023)

College athletes: HB 2804

-Allows employees of universities to identify or otherwise assist with opportunities for a currently-enrolled college athlete to earn compensation from a third party for the use of athlete’s NIL

-Effective July 1, 2023. (https://legiscan.com/TX/text/HB2804/2023)

Education for Athletes under TX NIL law

Education

Schools must provide:

  • a financial literacy and life skills course during the athlete's first academic year at the institution.

The course must:

  • be at least five hours in duration
  • include information on financial aid, debt management, time management, budgeting, and academic resources available to the student athlete.

Academic Performance

Academic benefits

  • In August 2020, the NCAA allowed schools to “pay each of their athletes up to $5,980 per year as a reward for academic performance.”

  • This amount is equal to the amount college athletes can receive for awards related to their athletic performance.

  • Schools are not required to provide any new benefits or cash bonuses, but have the option to do so.

  • Texas A&M provides these payments

What's happening

Highlights

High School athletes are entering college early since they are prohibited from NIL deals until college in Texas

Female athletes are getting some of the biggest deals including UCONN's Paige Bueckers who was the first college athlete to sign a deal with Gatorade & UCLA soccer's Reilyn Turner is the first college athlete to sign with Nike. Flau'jae Johnson of LSU inked a deal with Puma.

WBB players are the third-most compensated athletes on Opendorse

Some athletes are donating all their earnings to charity

The data

https://biz.opendorse.com/nil-insights/

Where do things go from here?

Next Steps

NCAA's new buzz word is "pay-for-play" & they were investigating NIL deals at various schools for alleged violations prior to the TN v NCAA injunction

Schools are preparting for direct athlete compensation and salaries

Expect TX to allow HS athletes to monetize and to make the rules around college athletes monetizing less restrictive

A robust NIL education program can be a great recruiting tool for athletes and create more well-rounded people

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