What Do I Need to Know About NIL?
NIL refers to a student-athlete’s ability to earn compensation in return for allowing individuals or outside entities to use their name, image, or likeness. NIL also refers to a student-athlete’s ability to use their name, image, or likeness in exchange for compensation.
There is no limit on the amount of NIL compensation a student-athlete may receive, so long as each NIL agreement adheres to the criteria outlined below. Forms of permissible NIL compensation include goods, services, and money.
What are the basic NCAA rules about NIL?
To receive compensation, any NIL agreement must meet the following criteria:
- Must be in exchange for work performed between the student-athlete and the third party (quid pro quo);
- Must be at a rate that falls within fair market value;
- Cannot be provided in exchange for athletic performance; and
- Cannot be provided as an inducement or reward for attending Stanford.
Please refer to the Navigating Permissible Deals section for additional clarity and practical examples.
What are some examples of NIL activities?
NIL activities can take form in many different manners. While not an exhaustive list, some examples include:
- Social media endorsements
- Personal appearances
- Brand ambassadors
- Referral discount codes
- Camp or clinic offerings
- Autograph signings
- Community service activity
Are there any industries in which student-athletes may not engage in NIL related activities?
There are no express state law restrictions on the types of industries student-athletes may seek to contract with for purposes of NIL; however, Stanford student-athletes should consider all relevant state and federal laws, as well as Stanford and NCAA policies.
May an NIL agreement have payment or benefits clause directly tied to a student-athlete’s athletic performance or achievement?
No, an agreement may not have any provision of payment tied to a student-athlete’s athletic performance or achievement. Please refer to the Navigating Permissible Deals section for additional clarity and practical examples.
May a NIL agreement include a clause stipulating that only if the student-athlete attends and/or remains enrolled at Stanford will they be able to receive compensation?
No, this arrangement would be considered an inducement to attend Stanford, and therefore impermissible. Please refer to the Navigating Permissible Deals section for additional clarity and practical examples.
May international student-athletes enter into NIL deals?
California law permits international students to enter into NIL agreements. However, F-1 and J-1 students are subject to many employment restrictions per their visa. Stanford has directed international student-athletes considering engaging in NIL to be cautious and seek guidance from the Bechtel International Center and/or outside immigration counsel.
Will the Stanford Athletics Compliance Office review student-athlete NIL agreements in advance of signing?
Yes. However, Stanford Athletics Compliance will provide feedback as to whether the agreement complies with California law, NCAA rules and regulations, and Stanford policies only. Stanford will not provide feedback as to any other terms of the agreement.
Moreover, Stanford is only permitted to provide feedback directly to the student-athlete and/or their parent(s) (i.e., not other parties including agents, businesses, boosters, etc.).
Stanford Athletics recommends that all third parties seeking to enter into a deal with a student-athlete draft the NIL agreement language and send it to the student-athlete and the Athletics Compliance Office for review. The Stanford Athletics Office will then work with the student-athlete on any questions or issues identified.