After much discussion over the last year, Florida’s name, image, and likeness (NIL) legislation for college athletes will go into effect on July 1, allowing college athletes to receive compensation based on their name, image and likeness. While universities and athletic conferences will remain forbidden from paying student-athletes for their athletic performances, student-athletes can now sign endorsement deals and profit from advertising and marketing campaigns for third-parties. The new legislation will assuredly create opportunities for businesses that desire to enlist college athletes as part of their marketing campaigns. This is particularly true for those in college towns that will likely look to retain student-athletes as independent contractors for promotional purposes and rely upon an athlete’s social media presence to create buzz for products, brands, and events. But the law will also create workplace law obligations for employers. What do you need to know about this new NIL law before you venture into uncharted territory?
3 Main Considerations Your Business Should Take into Account
If your business wants to head down this path and capitalize on the NIL law starting July 1, there are three main considerations you should take into account before proceeding.
The new law prohibits schools from preventing or unduly restricting an athlete from seeking representation (which can only be provided by a licensed sports agent or an attorney in good standing with the Florida Bar) in connection with securing name, image, and likeness compensation. Therefore, we expect to see a surge in NIL business immediately spring up soon after the July 1 start date. In summary, Florida’s name, image, and likeness law will create new opportunities for student-athletes and businesses that desire to hire athletes for marketing campaigns. Due to the importance of compliance, you should ensure that you adhere to the best legal practices to mitigate risks while maximizing value for their brands.
While Florida’s NIL law will be the first to go into effect next month, an increasing number of states will soon step to the plate and enact their own laws. Georgia, Alabama, New Mexico, and Mississippi have already followed suit in passing such laws that will soon take effect, as the first wave of states to legalize student-athletes profiting off their appearances swells in number.