The Louisiana State Legislature passed by the Louisiana Senate goes into effect on July 1, 2021. This law permits intercollegiate student-athletes enrolled at a university or college in the state to earn compensation at market value for use of their name, image and likeness (NIL) and retain an agent or attorney relating to this compensation. A college or university, athletic conference or the NCAA cannot prevent a student-athlete from earning compensation from the use of the student-athlete’s name, image or likeness.
NIL contract activities include appearances, autograph signings, social media promotions, advertisements or endorsements and other similar events in which a business, brand, product or service is promoted.
A business may reach out to student-athletes or be contacted by student-athletes to contract with a student-athlete. Student athletes will have the freedom to earn compensation for their NIL subject only to certain statutory and institutional policies. LSU will not be involved in arranging compensation or contracts for an intercollegiate athlete or provide compensation themselves.
Athletics boosters are prohibited from creating or facilitating NIL compensation opportunities for prospective student-athletes as a recruiting inducement or current student-athlete as an inducement to remain enrolled at LSU.
Agents, attorneys, marketing representatives, etc. MUST be registered as an agent in Louisiana or be licensed and in good standing as an attorney AND registered with the LSU Compliance Office.
Current student-athletes can sign contracts beginning July 1, 2021. Prospective student-athletes are encouraged to review their state governmental guidelines, as well as contact their state high school athletic association for further guidance.
A contract for compensation for the use of an athlete’s NIL while the athlete is under eighteen years of age shall be executed on the intercollegiate athlete’s behalf by their parent or legal guardian.
An intercollege athlete shall not enter into a contract for compensation for the use of the athlete’s NIL if a term of the contract conflicts with a term of the athletics program’s team contract.
The duration of a contract for representation of an intercollegiate athlete or compensation for the use of an athlete’s NIL shall not extend beyond their participation in an athletics program at a postsecondary education institution.
Student-athletes are permitted to retain agents or advisors for the purposes of providing counsel and assistance for NIL contracts. Agents or advisors for student-athlete NIL contracts must be registered with the State of Louisiana and the LSU Compliance Office.
Student-athletes or their agents can negotiate NIL contracts with businesses. LSU may not be involved in any form of brokering NIL-related contracts.
It is recommended NIL deals be disclosed prior to execution to ensure compliance with state law and university policies. A NIL deal cannot be executed with logo/mark/trademark/copyright/facility until written permission is received. Any questions on the disclosure process can be directed to the LSU Compliance Office via email at firstname.lastname@example.org.
Per state law, student-athletes may not enter into a contract for use of their NIL that uses the licensed marks or logos of the University UNLESS the school has provided written permission in advance of signing the NIL contract.
Student-athletes may receive compensation in the form of money, services or goods for the use of their NIL provided:
- The compensation is not provided in exchange of athletic performance;
- The compensation (or prospective compensation) is not provided as an inducement to attend or remain at the institution (“recruiting”);
- The compensation is commensurate with market value; and
- The compensation is not provided by LSU, an entity whose purpose includes supporting or benefitting from LSU or its intercollegiate athletics program, or an officer, director, employee, or agent of LSU.
No, but state law requires that payment or compensation to a student-athlete for a NIL contract must be at fair market value.
No. If a student-athlete is participating in a competition, fan event or other activity sponsored or organized by LSU Athletics, the student-athlete may not be compensated for his autograph, photo or other service.
The compensation time frame to a student-athlete for the use of their NIL is determined by the two parties to the NIL contract. LSU recommends all NIL contracts be disclosed to the University before the contract is signed and before any compensation is provided to ensure compliance with state law and university policies. A NIL deal cannot be executed with logo/mark/trademark/copyright/facility until written permission is received. Any questions on the disclosure process can be directed to the LSU Compliance Office via email at email@example.com.
Student-athletes may not enter a NIL contract to receive compensation for the advertisement, endorsement or promotion of the following:
- Sports Betting
- Performance Enhancing Supplements
- Controlled Substances
- Any Product Inconsistent with Values & Mission of the University or Reflects Adversely on the University or Athletics.
The University can refuse authorization for NIL contracts that conflict with state law, University policy or a University contract, as well as refuse the use of University marks or logos in NIL activities. The following acts are prohibited by LSU:
- Missing academic obligations
- Mandatory athletics meetings related to compliance
- Tiger Life obligations
- Team obligations
- NIL deals occurring on a day of an athletic obligation may occur at a coach’s discretion but are not recommended.
Otherwise, LSU may not adopt or maintain a contract, rule, regulation, standard, or other requirement that prevents or unduly restricts an intercollegiate athlete from earning compensation for the use of the athlete’s NIL.
LSU Athletics Compliance