High school student athletes can now profit; rules could change if bad actors emerge

The Florida High School Athletic Association and Florida Board of Education agreed that student athletes can now profit off their names, images, and likenesses. (Getty photos)

Florida student athletes can now profit from their names, images, and likenesses — NIL for short — under a policy the Board of Education unanimously approved on Wednesday. The measure had been passed by the Florida High School Athletic Association in early June .

Craig Damon, executive director of the association, said consultations with other state athletic association directors showed him that the payments are “really no different than a student having a part-time job.”

“It’s no different than a kid working at Publix or their local Chick-Fil-A, having the job, performing a service or a task, and getting compensated for that,” Damon said during the Board of Education meeting in Orlando.

Florida joins more than 30 states in allowing students to capitalize on their NIL at the high school level, many following a 2021 NCAA ruling that allows college athletes to capitalize in this way.

Damon said the program in Florida is not the same as in college, where athletes like LeBron James’ son at University of Southern California has reportedly made millions capitalizing off his fame. On the college level, the potential to profit has driven athletes, in unprecedented rates, to transfer to new schools to tap into bigger financial opportunities.

“We don’t foresee kids making hundreds of thousands of dollars or millions of dollars off it. However, there will be those, that 1% of elite athletes that possibly may have that opportunity, but the majority of our student athletes it will be something local, with a local business,” Damon said.

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Concerns about bad actors

The Florida rule does not allow collectives, or organizations that centralize donations for distribution to individual athletes, a difference from the NCAA rule.

The athletic association met Monday to further define collectives before the Board of Education would see the rule change. The Monday meeting resulted in language looking to clarify that team fundraising is still permitted, but collectives are not.

The athletic association has been made aware of potential bad actors in Florida and other states hoping to use athletes’ new avenue to get paid as a way to also make some money for themselves.

Board members suggested bad actors may prey on student athletes by presenting them with confusing contracts that have long-lasting implications, especially noting the vulnerabilities of minors entering contracts and families who may not have easy access to an attorney or advice from an agent.

“This could be a great opportunity for some student athletes, but we want to make sure that they do it in a manner that they’re protected and not exploited,” said board Chair Ben Gibson.

Florida athletes already have announced deals after the athletic association approved the amendment in early June, even though the rule needed Board of Education approval. Damon said athletes who accepted payments for their NIL during that time have not been penalized.

Education Commissioner Manny Diaz Jr. remarked on the new rule, phoning in to give his report to the board. He was at a news conference in St. Petersburg with Gov. Ron DeSantis Wednesday to announce workforce development grant funding.

“These athletes are excelling at their chosen sport, working long hours all year long to be successful,” Diaz said.

Similar to Damon, Diaz indicated that funds earned by student athletes could replace the role of a part time job.

“Students will now be able to utilize that hard-earned money for college tuition, housing, and food, once they graduate.”

“Florida student athletes are not pawns for your money-making scheme, so we will maintain vigilance with that and continue to evolve as necessary,” Diaz said.

The board suggested that the athletic association research ways to create a registry of all athletes who enter into NIL deals to ensure that students maintain compliance. Additionally, the board suggested the athletic association make available an example or template contract, to serve as a baseline to compare against contracts from businesses or donors.

Board members Wednesday, and athletic association members in June, acknowledged that this policy is a starting point and could stand to change in the coming months.

The rule prohibits some industries from sponsoring athletes, such as alcohol and tobacco, cannabis, gambling, and political or social activism, and prohibits use of school branding without permission.

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