High school athletes in North Carolina may be able to profit off their name, image, and likeness in the near future as the North Carolina State Board of Education is expected to vote on a new NIL policy next week.

The State Board of Education is expected to receive a presentation about the proposed rules on Wednesday afternoon with a vote scheduled for Thursday.

In June, the board passed a temporary rule banning all NIL activities for student-athletes at public high schools in North Carolina. Earlier this month, representatives of the N.C. High School Athletic Association presented information about NIL policies for high school students in other states.

The proposed rules that will be presented to the board are similar to the rules initially passed by the NCHSAA in May 2023. However, a law passed by the state legislature stripped the NCHSAA of its authority to regulate things like NIL, instead placing that responsibility with the State Board of Education.

Under the proposed rules, high school athletes in North Carolina would be allowed to profit off their name, image, and likeness under a set of guidelines that include restrictions as well as reporting requirements.

Any NIL deal at the high school level could not be conditioned on the quality of athletic performance, a parent or legal guardian must be part of the agreement for minors, and the school district, NCHSAA, State Board of Education, and the Department of Public Instruction must be released from all liability.

When a NIL deal is reached, the student must provide a copy of the agreement to their head coach, athletic director, principal, superintendent, and chair of the local school board. Those agreements must then be filed with the NCHSAA, which will be required to provide a summary of all NIL agreements to the State Board of Education on an annual basis.

Students and parents must also complete the NFHS Learn course about NIL.

There are various permitted activities that would be allowed under the proposed rule:

• Public appearances and commercials
• Autograph signings
• Athletic camps and clinics
• Sale of non-fungible tokens
• Produce or service endorsements
• Promotional activities, such as in-person events and social media advertisements

There are also a number of prohibited activities that student-athletes would have to avoid. For example, a school, school district, conference, or the NCHSAA could not be referenced as part of an NIL deal, and no intellectual property of those organizations may be used. This includes a ban on appearing in the school’s uniform as part of a NIL deal.

Athletes will not be permitted to endorse or promote goods or services of a third party during athletic participation or other school activities, which includes displaying logos or brands of a third party, unless it is part of the standard uniform for the school or sport.

The proposed rules also lay out specific promotions that would be prohibited. They include:

• 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 or school district

The State Board of Education also aims to ensure NIL does not become a recruiting tool for high school programs. The rules will prohibit athletic directors, coaches, and other school employees, as well as boost clubs or NIL collectives from promising a NIL deal in exchange for athletic participation or for transferring to a school. The rules also ban those same people from acting as an agent for NIL opportunities.

All of the rules put in place by the the State Board of Education would apply to any NIL agreement signed prior to high school graduation, regardless of when the benefits begin.

Last week, the family of Grimsley High School quarterback Faizon Brandon filed a lawsuit against the State Board of Education and the Department of Public Instruction over the ban on NIL activities. The lawsuit seeks a preliminary injunction allowing high school athletes to profit off their name, image, and likeness.

This is a developing story, it will be updated.

Source: highschoolot.com