The ability for high school athletes to profit off their name, image, and likeness could become reality next year if the North Carolina State Board of Education adopts permanent rules allowing NIL activities.

The board was presented a set of proposed permanent rules on Wednesday.

For now, North Carolina high school athletes at public schools, which includes charter schools, are not permitted to engage in NIL activities. This restriction also applies to the four private parochial schools in the N.C. High School Athletic Association.

However, the proposed permanent rule presented on Wednesday would change the current rule banning NIL activities and would allow high school athletes to profit off their name, image, and likeness beginning July 1, 2025.

The Board of Education is expected to vote on advancing the proposed permanent rules to public comment on Thursday morning. If passed, the public comment period would run Oct. 1 through Dec. 6. There will be a virtual public hearing on Nov. 8 at 10 a.m.

After the public comment period, the State Board of Education is scheduled to vote on adopting or rejecting the permanent rules on Jan. 9.

“NIL is a complex issue that requires thoughtful guidance, and given the limitations for the temporary rule making, the board chose to maintain the status quo and not authorize NIL in the temporary rule. We did, however, continue to consider and discuss this issue as we prepared for consideration for this permanent rule at this meeting,” Chairman Eric Davis said in opening remarks. “We’ve worked with our staff, with the North Carolina High School Athletic Association to research best practices and needed guidelines, and we’ve listened to our constituents in preparing to consider this recommendation for NIL in a way that gives us the best opportunity to safeguard the students, their families, and schools.”

Under the proposed rules, student-athletes would be permitted to make public appearances or appear in commercials, participate in autograph signings, make appearances at athletic camps and clinics, sell non-fungible tokens, endorse products and services, and participate in promotional activities on social media and at in-person events.

In order to be eligible to participate in these NIL activities, students and their parents must complete the free NIL course produced by the National Federation of State High School Associations. A copy of all NIL agreements must be shared with the head coach, athletic director, principal, superintendent, and the chairperson of the local board of education. That information is then sent to the NCHSAA by the athletic director, and the NCHSAA is in charge of producing an annual report to the State Board of Education.

If these rules are passed, NIL agreements cannot be conditioned on the performance of an athlete, and a parent or legal guardian must be party to the agreement if the student is under 18 years old. All NIL agreements also have to release the school district, NCHSAA, Department of Public Instruction, and the State Board of Education from all liability.

The rules also seek to prevent NIL from becoming a recruiting tool. Recruiting remains illegal at the high school level, however the proposed rules prohibit athletic directors, coaches, and other employees, as well as booster clubs and collectives from promising NIL deals in order to get students to participate in a sport or in an effort to convince a student to transfer to a school. It also prevents all of these parties from acting as an agent.

There are certain activities that would be banned by the proposed rules. For example, a student-athlete cannot reference a school or the NCHSAA in any NIL deal, and they cannot appear in the uniform of the school or team. In addition, students cannot endorse or promote goods and services during competition or other school activities, and they cannot display any logos or brands while competing, unless it is part of the standard school uniform.

The rules also prohibit NIL deals for the following activities:

• Adult establishments or entertainment services
• Alcohol or alcoholic products
• Tobacco, vaping, or nicotine products
• Cannabis or related products
• Controlled substances
• Opioids or prescription pharmaceuticals
• Weapons, firearms, or ammunition
• Casinos or gambling, including sports gambling
• Activities that would disrupt the operations of the school

Dr. Michael Williams asked about the enforcement of the policies and if it should fall on the local schools.

“It concerns me that the onus for reporting the existence of NIL (deals) and the onus for monitoring, detecting, and reporting violations of these rules falls on the shoulders of local school people,” Williams said. “That is, from my perspective as a school board member, a major concern.”

However, board member Catty Moore noted that the schools and districts are currently tasked with applying other rules for high school sports.

“Any time you’re applying rules and have to monitor the impact of those rules, I think that it has to happen at the level closest to the implementation … that’s where both the knowledge and the relationship exists,” Moore said, adding that the board needs to be mindful of the workload that could be added to some athletic directors. “It is in line with how all other rules are applied as well.”

If passed, all of the regulations would apply to any NIL agreement signed by a student prior to graduating from high school, even if the benefits are not realized until after high school.

“There could be changes between now and January … the board could ultimately decide to vote it down in January,” said Ryan M. Collins, Assistant General Counsel for the State Board of Education, noting that moving the rule to public comment does not necessarily mean this version of the rule will be adopted.

Currently, more than 30 states allow high school athletes to profit off their name, image, and likeness. The N.C. Independent Schools Athletic Association, which administers high school sports for nearly 100 private schools in North Carolina, adopted a NIL policy earlier this year, meaning many private school athletes in the state are now allowed to participate in NIL activities while public school athletes cannot.

Source: highschoolot.com