High school NIL now legal in North Carolina after judge signs order

High school NIL now legal in North Carolina after judge signs order

High school athletes in North Carolina are now permitted to profit off their name, image, and likeness after a Wake County judge signed an order on Monday requiring the State Board of Education to adopt its proposed permanent rules for NIL in high schools.

The family of Grimsley High School quarterback Faizon Brandon, one of the top football players in the nation from the Class of 2026 who has committed to Tennessee, filed a lawsuit against the State Board of Education and the Department of Public Instruction in August. The lawsuit alleged the board overstepped its authority when it decided to ban high school NIL activities earlier this year, pointing to Senate Bill 452, which was passed in 2023 and directed the board to adopt rules allowing high school athletes to use their NIL.

The lawsuit sought a preliminary injunction allowing NIL activities for North Carolina high school athletes, which was granted by the judge in September. However, NIL did not become legal until the judge signed the written order on Monday.

“Senate Bill 452 is unambiguous. It does not give the State Board unfettered discretion to promulgate any NIL rule it wishes or to decide whether public high school athletes should be allowed to license the use of their NIL at all,” wrote Judge A. Graham Shirley II. “Rather, Senate Bill 452 directed the State Board to adopt rules related to use of a student’s name, image, and likeness through the imposition of rules or guardrails related to that use. The State Board of Education was not, however, authorized to altogether prohibit students’ use of their names, images, and likenesses.”

Shirley said State Bill 452 included “deliberate inclusion of ‘rules related to the use,” which shows the General Assembly intended for public school athletes to have the ability to use their name, image, and likeness.

Sen. Amy Galey (R-Alamance), who chairs the Senate Education Committee, wrote a letter to the State Board of Education raising similar concerns about the temporary rule in September.

The court also found that the temporary rule restricting Brandon’s use of his NIL caused irreparable harm, which is part of the reason the court issued a preliminary injunction.

“(Brandon) is restricted by the Temporary Rule from entering into at least two written offers to use his name, image, and likeness for commercial purposes in order to remain eligible to participate in interscholastic athletics at his public high school. The Temporary Rule is the only reason (Brandon) cannot enter into these agreements to use his name, image, and the likeness,” the order says. “The harm is real, immediate, and will continue absent an injunction enjoining the enforcement of the Temporary Rule.”

In September, the State Board of Education moved forward a set of proposed permanent rules that, if adopted, would allow high school athletes at public schools in North Carolina to use their NIL. The proposed rule was scheduled to go to a public comment period this fall before the board considered the rule as early as January. If passed, the rule would have gone into effect in July 2025. The preliminary injunction takes that rule and applies it immediately.

There are a series of guidelines and restrictions that will be applied to high school NIL. There are types of activities that are allowed and others that remain illegal. Students and their parents are required to go through an online training class, and all NIL activities must be reported to the school, school district, and the NCHSAA.

The preliminary injunction will remain in place until the State Board of Education provides the court a temporary or permanent rule that is similar to the proposed rule, the proposed permanent rule goes into effect, or additional legislation is passed and effective.

Source: highschoolot.com