Name, Image, & Likeness (NIL) Payment Rules:
All USIAA varsity & redshirt athletes in all 4 divisions that meet all the academic requirements for scholarships are also allowed to get paid for the use of their name, image and likeness (NIL) & keep their scholarships (both academic & athletic). However, they can only make money from any of the following if they are consistent with any applicable state law where the athlete's school is located:
All NIL "collectives" (i.e. business entities that are formed by the supporters of a school’s athletic teams, including alumni, donors, & boosters) are required to be corporations instead of a sole proprietorship and/or partnership or even a tax-exempt organization:
All USIAA athletes may use either of the following to negotiate NIL deals:
Rules regarding NIL Contracts:
All USIAA athletes can only earn a max of the following, regardless of division:
All USIAA institutions cannot prohibit or discourage a student-athlete from wearing the footwear of their choice during official team activities, including games and practices unless any of the following occurs:
With the exception the following, all USIAA athletes cannot be paid directly by their institution:
- Product Endorsements (including selling their own merchandise) and/or commercials with any small business per the definition(s) of the U.S. Small Business Administration (SBA) within 125mi/201km of either their hometown and/or their institution; these deals can be renewed if the athlete's GPA is at least 2.5.
- Product Endorsements and/or commercials with any other business; these deals cannot be renewed of the athlete's GPA is below 3.0
- Selling ads on their social media account(s).
- Commercials with the following:
a) their ROTC unit / service academy, a state defense force (if applicable), or the federal military (ROTC & service academy students & students with friends/family in these professions only).
b) law enforcement & firefighting agencies (criminal justice majors & students with friends/family in these professions only) - Personal appearances (i.e. speeches, autograph signings, training camps during the summer with permission from the coaching staff, other paid appearances, etc.) within 125mi / 201km of either their hometown and/or their institution.
- Social media accounts, including YouTube Channels/podcasts, via crowdfunding services such as Patreon, Kickstarter, etc.
- Starting a small business of their own, or with the help of family and/or friends.
- However, ALL NIL activities cannot not interfere with an athlete’s academic obligations, & ALL student-athletes that fail to meet the academic requirements to get athletic scholarships are NOT eligible to participate in NIL activities.
All NIL "collectives" (i.e. business entities that are formed by the supporters of a school’s athletic teams, including alumni, donors, & boosters) are required to be corporations instead of a sole proprietorship and/or partnership or even a tax-exempt organization:
- All USIAA institutions can only have 1 collective for all sponsored sports.
- All collectives must send quarterly reports about their activities/spending to the school's AD and annual reports to the NIL council mentioned below and the Federal Trade Commission (FTC).
- All boosters (and shell companies acting in the interest of boosters) are prohibited from having contact from incoming college athletes and/or their families, though former athletes may be used for recruiting.
- People, including boosters can only donate a max of $5,000 to only 1 NIL collective per year calendar (or fiscal) year. In addition, all donation to NIL collectives must not be tax-deductible.
- All headquarters & other facilities for NIL "collectives" must be either of the following:
a) Inside the campus
b) Within 5mi / 8km of the campus. - All collectives are subject to lawsuits from any of the following for any potential wrongdoing:
a) All athletes that that have worked with the organization.
b) The academic institution that the organization is affiliated with.
c) The USIAA itself.
d) Law enforcement agencies.
All USIAA athletes may use either of the following to negotiate NIL deals:
- An agent or representative that is licensed by either of the following:
a) The USIAA itself.
b) The state government(s).
c) National organizations related to law & finance (i.e., The American Bar Association or NASBA).
d) This can include licensed attorneys & financial advisors in addition to "traditional" sports agencies. - Their coaching staff, including the team's recruiter.
- All USIAA athletes are required to complete a minimum of 5 hours of financial literacy and life skills training at the start of their 1st and 3rd academic years.
Rules regarding NIL Contracts:
- All USIAA athletes can enter into NIL contracts that meet the following requirements:
a) The contract is in writing and signed by each party.
b) The contract outlines the scope and timeline of work the athlete must perform.
c) The contract states the compensation and has a duration or end.
d) The contract conforms with an USIAA-developed standard contract template. - There is no limit to the amount of deals that an athlete can have if their GPA is at least 2.5; athletes that do not have a GPA of at least 2.5 cannot have any NIL deal(s).
- All high school athletes can only sign NIL deals once they meet the following requirements:
a) They turn 18 (or 17 with parental/guardian approval)
b) At least 90 days after they sign a national letter of intent (NLI) committing to play any USIAA sponsored sport(s) for any particular USIAA institution or 30 days have passed since they first started attending the school as a walk-on athlete. - All large companies per the definition(s) of the U.S. Small Business Administration (SBA) can only sign a max of 10 eligible athletes per sport at each division/level (i.e., 40 athletes per sport, 560 athletes per division, or 2240 total athletes across all 4 divisions) each calendar (or fiscal) year.
- All athletes can only sign with 3 separate large companies per calendar or fiscal year.
- ALL NIL agreement(s) cannot incentivize any athlete to attend a certain institution.
- All athletes are required to disclose all NIL activity (including the amounts being paid) to their institution's compliance officer:
a) All athletes "must disclose the contract with their school," including "compensation amounts and other contract particulars." within 30 days of entering into a NIL deal.
b) All NIL contracts between companies and athletes that are shared with the institution shall remain private and confidential unless a law enforcement agency requests the documentation as part of an investigation via a warrant.
c) There must be a registry for transparency in all NIL deals.
d) The registry must be overseen/administered by a legislative council comprised of government officials appointed by the US (& Canadian, if applicable) state/provincial/territorial governments (1 per US state/territory & Canadian province) and 4 officials appointed by the USIAA (1 per division/level). - Schools cannot provide free equipment and/or services (cameras, graphics software, computers, graphic designers, tax preparation, contract review, etc.) to student-athletes unless those services are available to the general student body.
- Schools can promote student-athletes' NIL activities, provided the student-athlete or NIL entity pays the going rate for that advertisement (for example, on a video board during a game):
a) However, schools cannot allow student-athletes to promote their activity while participating in required athletics activities (pre- and postgame activities, court celebrations and news conferences). - All USIAA athletes are prohibited from doing the following:
a) Endorsing alcohol, tobacco, drugs and controlled substances, adult entertainment, gambling, sports wagering, performance enhancing drugs, & pharmaceuticals.
b) Using their institution's logos or other copyright material in endorsements, unless they receive written approval from the institution. - All athlete(s) that enter the transfer portal must forfeit all endorsement deal(s) with any small business within 125mi/203km of their institution.
- All NIL contracts must be voided/forfeited of an athlete commits a crime (i.e. felonies and/or misdemeanors).
- All athletes are allowed to bargain collectively, but only by division (i.e. there must be separate unions for D1, D2, D3, & D4 athletes).
- All NIL Contracts will be taxed at both the federal & state level.
- All agents doing NIL deals can't write their contracts so they automatically represent these players in future deals once they go professional.
All USIAA athletes can only earn a max of the following, regardless of division:
- US$100,000 per endorsement deal if the athlete's GPA is at least 3.75 at the time of contract being signed.
- US$75,000 per endorsement deal if the athlete's GPA is at least 3.5 at the time of contract being signed.
- US$50,000 per endorsement deal if the athlete's GPA is at least 3.0 at the time of contract being signed.
- US$25,000 per endorsement deal if the athlete's GPA is at least 2.5 at the time of contract being signed.
- A sponsor can only sign an NIL deal with an athlete once every academic year. The full amount of compensation must be paid upfront.
- In addition to negotiations, all NIL "activities" as part of an endorsement deal can only happen during the following:
a) Their sports official offseason (2022 example for football = January 1st - August 26th).
b) the institution's official breaks (i.e. fall break, winter break, spring break & summer break).
c) examples of "activities" include filming commercials / YouTube videos, recording audio for podcasts, public speeches, etc.
All USIAA institutions cannot prohibit or discourage a student-athlete from wearing the footwear of their choice during official team activities, including games and practices unless any of the following occurs:
- They are discriminatory towards any particular group(s).
- Their coaching staff believes that it will negatively affect the athlete's performance
- They can cause damage to the institution's facilities.
With the exception the following, all USIAA athletes cannot be paid directly by their institution:
- Any combination of athletic scholarships.
- Any combination of academic scholarships.
- Any official commercials affiliated with their institution that are not related to the institution's sports teams.
- Any official institutional merchandise sales, such as jersey sales.