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The emergence of NIL deals for college athletes, Pa attorney weighs in

  • Asia Tabb
FILE PHOTO: In this April 19, 2019, file photo, an athlete stands near a NCAA logo during a softball game in Beaumont, Texas. The NCAA is poised to take a significant step toward allowing college athletes to earn money without violating amateurism rules. The Board of Governors will be briefed Tuesday, Oct. 29 by administrators who have been examining whether it would be feasible to allow college athletes to profit of their names, images and likenesses. A California law set to take effect in 2023 would make it illegal for NCAA schools in the state to prevent athletes from signing personal endorsement deals.

 Aaron M. Sprecher / AP Photo

FILE PHOTO: In this April 19, 2019, file photo, an athlete stands near a NCAA logo during a softball game in Beaumont, Texas. The NCAA is poised to take a significant step toward allowing college athletes to earn money without violating amateurism rules. The Board of Governors will be briefed Tuesday, Oct. 29 by administrators who have been examining whether it would be feasible to allow college athletes to profit of their names, images and likenesses. A California law set to take effect in 2023 would make it illegal for NCAA schools in the state to prevent athletes from signing personal endorsement deals.

Aired; November 20th, 2024.

A new law now allows college athletes and even some in high school to benefit financially by allowing the use of the athlete’s name, image, or likeness (NIL). Phillip Petrina, an associate with the law firm McNees, Wallace & Nurick spoke with The Spark host Asia Tabb about the emergence of those deals.

While a college athlete can earn compensation through NIL deals, the NCAA has outlined it does not include pay to play.

So, the athlete is going to perform a service in exchange for that compensation. And the compensation, again, cannot be tied to their athletic performance or their attendance at a particular university. So that compensation by law, most state laws, Pennsylvania isn’t one of them, but most state laws require that the compensation be commensurate with the student’s fair market value.”

Student athletes are not allowed to enter into any NIL agreements that promote alcohol, tobacco, gambling, sports betting, or adult entertainment services. Students must report their NIL agreements to the university.

“So, in Pennsylvania, within seven days of executing an aisle agreement, students must disclose that to the university. And the reason for that is, one, so that the university can, and the athletics department of that particular school can monitor whether or not it complies with the state law and the NCAA regulations, but also the endorsement agreements cannot conflict. With any college or university agreements.”

 

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