NC Board of Education takes a deeper dive into NIL compensation for student athletes

The North Carolina State Board of Education on Wednesday discussed what guardrails are needed for an NIL policy. (Getty Image/zimmytws iStock)

NIL — “name, image, and likeness” — deals are common in college athletics and for a year the N.C. High School Athletic Association allowed it. That was until June when the North Carolina State Board of Education reversed the NCHSAA position, adopting amateur rules for student athletes that prohibit NIL arrangements.

But here’s the rub — more than 30 states already have their own NIL policies in place, leaving North Carolina essentially behind the curve.

NCHSAA commissioner Que Tucker told the State Board of Education on Wednesday that regardless of how they may feel about student athletes getting paid for public appearances or autographs, the reality is that it’s already happening at the collegiate level and it’s trickling down to interscholastic athletics.

Tucker said the NCHSAA has studied the issue extensively and believes North Carolina must balance what is in the best interests of the students, the school, and the community.

“We want to make sure that if there is a policy in place that our students are not negatively impacted by any type of an NIL benefit, so that if they sign something that it doesn’t take them out of class, that it doesn’t have them running around making appearances because they are students first,” stressed Tucker.

With many state associations already permitting high school students to profit off their name, image, and likeness, the NCHSAA believes that North Carolina needs a policy that offers consistent guidance.

Know what they are signing, before they sign

NCHSAA also believes that there needs to be a financial education component to help students understand what they are agreeing to.

“We need to provide resources so that not only the student himself or herself understands, but that parents understand and so we need to make sure that they understand the legal implications when they sign an NIL policy, and maybe what kind of tax implications would there be if there is money involved,” advised Tucker.

A student athlete bringing in too much money via NIL could, for instance, endanger their eligibility for financial aid.

Tod Morgan, an NCHSAA board member and the principal at Charles B. Aycock High School in Wayne County, told the state board that NIL is unlikely to be a path provide a path to riches for high school athletes. Most NIL deals at this level are between $60 and $120 for three to four hours of a student athlete’s time.

Still, Morgan cautioned that private schools have an ability to offer NIL deals and may try to entice a student athlete from a public school to go to an independent school. Likewise, states bordering North Carolina that already have an NIL policy may be able to attract a talented student to cross the state line.

“So, we’re just trying to put something in place that would protect our student athletes across our state and yet give them the opportunity to make a side business, an entrepreneurial-type venture using their name, image, and likeness,” said Morgan.

Some board of education members questioned who would monitor such deals, or whether an attorney would even review a NIL contract in which a student athlete was earning less than $200.

“Well, there are businesses reaching out to student athletes saying, ‘Come on over here and do this for my business and I’ll give you some side money,'” Morgan acknowledged. “All of a sudden they’ve done something, and they’ve broken the amateurism policy. They’ve received more benefit than they should have, and they are ineligible.”

Getting our arms around jello

Board Vice Chair Alan Duncan said the reality is that it has become commonplace for prospective high school athletes to get thousands of dollars in NIL money simply by requesting they get paid before agreeing to make an official visit to a recruiting college.

“I feel like what we’re trying to do is put our arms around jello and the jello is squirting out in every which direction, and it’s gonna continue to squirt out in every which direction,” said Duncan.

Duncan said he could envision a full-time job where someone is examining student athlete eligibility and violations once the NIL door is open.

“We’re adjusting to the world, and I don’t know that we can adjust fast enough, or that we really approve of what we are adjusting to,” Duncan offered.

NCHSAA Commissioner Tucker said that like many of the rules and regulations to play interscholastic athletics, it will come down to educating students and parents and the value system the schools uphold.

“This is all in jello. It’s not in cement. But if we don’t have something that at least gives guidance then I’m just afraid we’ll have students doing things that they shouldn’t do try to hide it,” Tucker cautioned.

The State Board of Education could consider a new permanent rule regarding NIL later this fall.