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.
General NIL Questions
What kinds of promotions are prohibited?
Student-athletes may not enter a NIL contract to receive compensation for the advertisement, endorsement or promotion of the following:
- Gambling
- Alcohol
- Sports Betting
- Performance Enhancing Supplements
- Controlled Substances
- Marijuana
- Tobacco
- Any Product Inconsistent with Values & Mission of the University or Reflects Adversely on the University or Athletics.
Can the University restrict or deny a NIL activity?
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.
May international student-athletes utilize NIL?
International student-athletes should NOT enter into any NIL agreements without guidance from the LSU Compliance Office (compliance@lsu.edu) and LSU’s International Services (isograd@lsu.edu) to discuss and prevent any complications with student visa/immigration issues.
Where can I read Louisiana Senate Bill 250?
The full text of Louisiana SB 250 can be found here.
For Student-Athletes
I am a student athlete who has been approached about an NIL deal. What do I do?
NIL deals should be disclosed prior to execution to ensure compliance with state law and university policies. You can disclose deals by logging into your ARMS account using your LSU credentials, selecting ‘Workflows’, selecting ‘Workflow Launchpad’, and selecting ‘NIL disclosure.
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 nilsu@lsu.edu.
May a student-athlete receive NIL compensation based on a student-athlete’s athletic performance at LSU (pay for play?)
No. Compensation cannot be based on athletic performance.
When can student-athletes sign a promotional contract?
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.
May a NIL contract stipulate that a student-athlete must compete for, or attend, LSU?
No. NIL is based on the foundation of endorsement of a person, not a requirement to attend an Institution for athletic ability.
May student-athletes have representation?
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.
Interested agents can learn more HERE.
May student-athletes use branded attire or material during promotional events (e.g., student-athlete filming endorsement ad while wearing an LSU hat)?
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.
Permission is granted or declined during the disclosure process.
For Businesses
I own or represent a business and am interested in engaging in an NIL deal with a student-athlete. What should I do?
A business may reach out to student-athletes, be contacted by student-athletes to contract with a student-athlete, or find them on our directory at LSUSports.net. In order to Pitch a Deal to a student-athlete, please complete this form.
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.
What types of NIL deals are permissible for businesses to conduct with student-athletes?
Businesses can sign student athletes for a variety of deals, including endorsements, social media, appearances, autographs, marketing, Board of Directors representation, and more! Curious if your way is an option? Contact NILSU@lsu.edu.
How do I register a business for a NIL contract with a student-athlete?
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.
How do businesses compensate a student-athlete?
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.
May businesses compensate a student-athlete for their NIL when the student-athlete is engaged in official team activities?
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.
When do businesses compensate a student-athlete after a NIL contract has been signed?
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 compliance@lsu.edu.
Is there a limit on what businesses can compensate a student-athlete for their NIL?
No, but state law requires that payment or compensation to a student-athlete for a NIL contract must be at fair market value.