Senate Bill 60 was passed by the LA Legislature 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. The bill was amended by Senate Bill 250 (June 2022) and 465 (May 2024).
EDUCATION
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 and 465?
The full text of Louisiana SB 250 can be found here.
The full text of Louisiana SB 465 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 are to be disclosed through the NILSU App.
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 as of 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 intercollegiate 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.
For High School Student-Athletes
Can I participate in NIL activities in high school?
It’s possible! The NCAA does not prohibit high school student-athletes from monetizing their NIL if the state law under which the prospect competes does not prohibit it for high school athletes. It is important to check your state’s NIL law as well as your state’s high school athletic association rules. In Louisiana, state law does not address high school athletes, but the LHSAA permits athletes to engage in NIL activities.
Are there any risks to participating in NIL?
Yes. Engaging in NIL activities without respecting your state’s NIL rules and regulations could jeopardize your collegiate eligibility, expose you to legal harm, or limit your ability to pursue future NIL deals. It is important to educate yourself in the NIL space before you engage in your first deal or sign your first agreement.
What is an NIL valuation and how is it calculated?
Your NIL valuation is an estimate of the financial value you could capture from your NIL. It is calculated by your social media metrics (engagement, reach, quality of content), brand alignment, and potential for growth, among other factors.
Why is my NIL valuation important?
Your NIL valuation provides an expert assessment of your brand and marketability which you may use to refine your brand development approach. Businesses also use your NIL valuation as a supplement to their research, allowing them to assess the alignment of their brand with yours.
What should I do to increase my NIL value?
First, learn about NIL! The best way to make money from your name, image, and likeness is to understand the industry well. Educational resources may be found here. Next, use social media to build your personal brand – businesses primarily engage with student-athletes through these platforms. Building a brand will help you find businesses that best align with your personal morals and values, allowing you to secure the best deals and, in turn, increase your NIL value!
What are some ways in which I can earn money from my NIL?
Monetize social media: receive money directly from social platforms or from a sponsorship, affiliate program, ambassadorship, product collaboration, etc. Participate in or appear at events: autograph signings, teaching camps, lessons, fundraisers, ad campaigns, etc.
Can I contact businesses directly?
Yes, but be sure to check your state law.
Should I seek guidance or hire an agent for NIL deals?
An agent may increase your NIL opportunity; however, not all agents offer the same quality of service. You may want to start by seeking assistance from current collegiate student-athletes, financial advisors, or other industry experts.
Which questions should I ask an agent?
Consider asking: How many clients do you have and how do you manage your time? Will you work with me directly or will I have a team? Do you represent similar clients? How successful are your dealings with other clients? How do you handle potential conflicts of interest? What is your fee structure? Are you state-registered? What other services do you offer?
Can I accept free and/or gifted items?
Yes, but you must receive the item(s) through an NIL deal or exchange. It is impermissible to accept something for free without fulfilling the quid-pro-quo requirement. Free and gifted items given during the recruitment process are considered recruiting inducements and are strictly prohibited by both the NCAA and most states (see: LA).
Do I have to pay taxes on my NIL deals?
Yes, NIL income is taxable! Income must be reported on your tax return, and this includes free or gifted items obtained from quid pro quo transactions.
Do I need an LLC?
LLCs are not required but may be beneficial for certain student-athletes. Consult with a financial advisor to determine if forming an LLC is the appropriate choice for you.
If I enter into an NIL deal before my collegiate eligibility begins, do I need to disclose it?
If you enter a deal in high school, you should be aware of your high school guidelines on NIL deal disclosure. Once the athlete transitions to college, disclosure requirements will vary by institution. At LSU, student-athletes are required to disclose any NIL opportunities at the time of enrollment.
What should my next steps be?
Build your brand: connect with companies at various NIL events, improve your social media presence, and meet with NILSU staff or your local collegiate representatives!