Paying high school athletes

COURTESY PHOTO

The Florida High School Athletic Association opened the door for student athletes to earn money from business agreements such as endorsement deals, with the organization’s president calling the move a “good starting point.”

The FHSAA’s Board of Directors voted unanimously to approve a seismic change in the organization’s bylaws. The change allows athletes to be compensated for their name, image and likeness or NIL. The changes will be in effect for the upcoming school year.

Under the change, student-athletes and their parents or guardians must “negotiate any NIL activities independent of their school, school district, or the FHSAA.” The board also agreed to allow high-school athletes to hire agents to assist them in navigating business deals, reversing a longstanding prohibition.

The revamped bylaws now allow for hiring “registered” agents only for the “purpose of advising on NIL-related” matters.

The policy that was approved earlier this month has been in the works since February, and the board held multiple meetings to draft the language for the new rules.

Monica Colucci, a Miami-Dade County school board member and president of the FHSAA Board of Directors, said the change will bring Florida into “new territory.”

“So there are going to be hesitations, we are going to feel nervous. But I do really believe that this is going to put us on par with the rest of the country. We are going to have some things that we have to face as a board. And we will do so. Because I really believe we are very capable and we are going to do the right thing for students, always. That is our top priority,” Colucci said.

According to the revamped bylaws, as of October, 30 states and the District of Columbia allow high-school athletes to “receive NIL compensation.”

The updated regulations define “permissible activities” under the new NIL policy to include, but not be limited to, commercial endorsements, promotional activities, social media presence and product or service advertisements.

The new NIL rules also include some restrictions.

For example, student-athletes will be prohibited from using their school’s logo, uniform or equipment in any NIL deals unless they are given written permission from the school, district or FHSAA.

Student-athletes are also banned from endorsing certain products, such as alcohol, tobacco, vaping, gambling, weapons, cannabis products and prescription drugs.

The FHSAA board also approved a prohibition on endorsements related to “political or social activism” as part of the NIL rules.

Another prohibition that has sparked debate within the FHSAA board is barring what are known as NIL “collectives” from being allowed under the policy. Collectives are funding organizations through which student-athlete compensation frequently is funneled.

Kimberly Richey, a senior chancellor with the Florida Department of Education who is also on the FHSAA board, has pushed to include a ban on collectives in the bylaws.

“I think what we’re doing is, we’re saying there cannot be any groups out there that exist to collect funds from donors to facilitate NIL deals for student athletes. That’s what a collective is. If you exist solely for that purpose, you cannot operate in Florida,” said Richey.

The new FHSAA bylaw changes could potentially change the landscape of school athletics. An introductory part of the policy notes that schools can educate student-athletes about the potential “drawbacks” of engaging in NIL deals.

The new bylaws state, “The FHSAA supports NIL education, which prepares student-athletes to make informed decisions. By providing student-athletes with knowledge about potential legal and financial drawbacks associated with NIL activities, high schools can contribute to the overall welfare of their student-athletes.”

Student-athletes and their families “are encouraged to seek legal counsel and tax advice when considering NIL activity.”

The action comes several years after a similar change that has allowed collegiate level athletes to make a profit. An initial NIL law related to colleges and universities was enacted in Florida in July 2021. Last year, Gov. Ron DeSantis approved a subsequent measure that expanded the state’s law to allow universities to become more involved in the NIL process.

Colucci reminded the FHSAA board that high school sports officials could also revisit the NIL policy in the future.

“As the governing board, we can, as situations arise, we can tweak the bylaw. We can go back to it. We can revisit it as many times as we need to to make the modifications. But I do believe, as president of this organization, this is a very good starting point for us to move forward with,” Colucci said. ¦

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