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In 2022, while the states, federal government, and NCAA continue to create new guidance and potential new legislation to govern the publicity rights of student-athletes, the value of the NIL deal will reach unprecedented levels. has grown to
Some of these laws entered into force on January 1, 2023. States with new NIL laws include Colorado, Delaware, Michigan (effective December 31, 2022), and New York. Other states, such as Montana, Nebraska, and Oklahoma, plan to implement new NIL laws in late 2023.
Colorado law provides for the right of student-athletes to receive compensation for their use of the NIL, but still appears to allow the NCAA to regulate the use of NIL rights by student-athletes. Colorado colleges cannot impose any other restrictions on NIL rights beyond those from the NCAA.
A new law in Delaware regulates who wants to act as a student-athlete’s agent at a Delaware university. This law is not primarily aimed at the right of a student-athlete to pay royalties for his NIL, but instead how an individual can be an athlete’s agent and must act as an agent. It even goes so far as to regulate and (among other things) configure the methods. Certain data that prospective agents must provide to the Delaware Secretary of State, and a warning statement that must be included in student-agent contracts for representation.
In Michigan, a new law protects NIL rights for student-athletes, similar to Colorado law. However, Michigan law does not appear to limit her NIL rights under the NCAA rules and regulations, and in that sense it sees it as more favorable to student-athletes, groups and organizations. can do.
New York’s new law is similar to Michigan’s and does not appear to respect the NCAA. However, New York law has its own characteristics. Division I collegiate athletic programs are required to offer a “Student-Athlete Support Program.” This program may include a “financial distress fund” from which student-athletes may receive payments. from their school “when economically necessary”. It is not clear what constitutes “financial necessity”, but the law does not appear to prevent NIL payments from sponsors and direct payments from schools from “financial hardship funds.” Hmm.
Given the state-by-state differences in NIL laws (these are just a few outlined above), athletes, administrators, and organizations should ensure that before pursuing or acting under a potential NIL contract, they You should consult a lawyer.
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