Beginning July 1, 2021, student-athletes are permitted to earn compensation for their name, image or likeness. Below is helpful information for student-athletes, supporters of Alabama Athletics and employees of The University of Alabama relative to the Alabama State Law and name, image, likeness.
Information for Student-Athletes
- Employees of The University of Alabama may not compensate or arrange any compensation deals to a current or prospective student-athlete for his or her name, image or likeness.
- Compensation will be commensurate with the market value.
- It is not permissible for compensation to be provided in exchange for athletic performance or attendance at The University of Alabama.
- Compensation can come in the form of money, goods or services.
- Contracts for compensation cannot extend beyond participation as a student-athlete at The University of Alabama.
- Opportunities must not conflict with academic nor team-related activities.
- Use of any registered marks, logos, verbiage or designs owned and protected by The University of Alabama is not permitted unless receiving prior written permission.
- Student-athletes must utilize COMPASS platform to disclose agreements/contracts.
- Student-athletes are permitted to obtain professional representation to assist with securing opportunities for compensation. Representation must be for name, image, likeness only and not for future professional contract negotiations.
FAQs for Alabama Athletics Supporters and University of Alabama Employees
- May a booster or fan enter into an agreement with a University of Alabama (“UA”) student-athlete (“SA”) for the use of the SA’s name, image, or likeness (“NIL”) in exchange for money, goods or services?
- Yes, subject to the restrictions imposed by Alabama law (PDF). Before entering such a contract, the SA is required to disclose any proposed contract for use of their NIL to UA. It is possible, and likely, that federal laws and NCAA legislation will ultimately provide a nationwide, uniform approach to NIL governance, at which point restrictions on these agreements are subject to change.
- May UA employees assist me with arranging for student-athletes to utilize their NIL for compensation with my business, etc.?
- No. UA employees may not arrange for our SAs to participate in NIL contracts or activities; however, we may forward information about legitimate NIL-opportunities to [email protected]. The information will be routed by compliance to the student-athletes for their consideration. Alabama NIL law otherwise precludes the institution from providing NIL compensation, and Alabama law generally prohibits the use of state resources for private gain.
- Will UA assist SAs with other NIL-related issues?
- Yes. UA will have a robust program to educate student-athletes in how to maximize the use of their NIL for compensation, as well as understanding associated issues (e.g., financial literacy, debt management, time management, budgeting, academic resources).
- May an SA receive NIL-compensation based on the SA’s athletic performance at UA?
- No.
- May a booster or fan compensate an SA for the SA’s NIL when the SA is engaged in official team activities?
- No. For example, if a SA is at a fan event that has been organized by UA (e.g. A-Day), or at an away-from-home competition, you may not compensate the SA for the SA’s autograph or photo because the SA is engaged in official team activities. If the SA is participating in an activity that was organized by UA, then it is an official team activity.
- How long may an SA’s NIL-related contract last?
- The duration of the SA’s NIL contract may not extend beyond the SA’s participation in the UA intercollegiate athletics program.
- Are there limitations on the compensation or opportunities that can be provided to a SA for use of their NIL?
- Yes. Compensation for NIL use shall be commensurate with the market value. Additionally, SAs are not permitted to enter into an endorsement contract, or otherwise receive compensation, from any of the following categories or brands:
- A tobacco company or brand, including alternative nicotine products
- Any alcoholic beverage company or brand
- Any seller or distributor of a controlled substance, including but not limited to, marijuana
- Any adult entertainment business
- Any casino or entities that sponsor or promote gambling activities
Additionally, UA may prohibit an SA from receiving compensation for use of their NIL from entities or individuals that, in the reasonable and good faith judgment of UA, negatively impacts or reflects adversely on UA.
Other examples of prohibited compensation for SA NIL activity include:
- Where the SA is not a US citizen and the SA’s visa generally prohibits employment
- In exchange for property owned by UA (e.g., current jersey or equipment)
- Where UA determines that a term of a contract for NIL compensation conflicts with a term of a contract held by UA
- Can UA’s marks, logos or other intellectual property be used in a proposed NIL-contract with a UA SA (e.g., SA filming endorsement ad while wearing UA hat or jersey)?
- No. Alabama state law prohibits SAs from receiving compensation for use of their NIL in a way that also uses any registered or licensed marks, logos, verbiage, or designs of UA without prior written consent.
- May a booster, fan or UA employee provide NIL-compensation to a prospective student-athlete (“PSA”)?
- No. Alabama law prevents the use of compensation for NIL as an inducement to attend or enroll in or continue attending a specific postsecondary institution. Generally, PSAs participate in competition governed by state athletics associations that have amateurism rules which prohibit a PSA from using his/her NIL for compensation.
- May a contract for NIL compensation stipulate that an SA must compete for, or attend, UA (or any other NCAA member school)?
- No.
If you have specific questions, please contact us at [email protected].
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Patrick Dowd is a Reporter for Touchdown Alabama Magazine. You can follow him on Twitter, via Pat_Dowd77
