Name, image, and likeness, commonly known as NIL, refers to an athlete's legal right to profit from the use of their own identity. For decades, college athletes were prohibited from receiving any compensation related to their athletic fame or ability. That changed in 2021 when the NCAA adopted a new policy allowing student-athletes to profit from their name, image, and likeness while maintaining their eligibility. The landscape has evolved rapidly since then, and navigating it requires a clear understanding of what the rules allow and what athletes should watch out for.
What Does NIL Mean in Practice?
NIL rights allow college athletes to enter into agreements under which they are paid for the commercial use of their identity. Common examples include:
Importantly, NIL deals must be based on the athlete's name, image, or likeness. Pay-for-play arrangements, in which an athlete is compensated simply for competing or committing to a particular school, remain prohibited under NCAA rules, though the line between permissible NIL and improper inducements has become increasingly contested.
Nebraska's NIL Law
Nebraska enacted its own NIL law prior to the NCAA's policy change, and it was one of the states that pushed the national conversation forward. Nebraska's statute permits student-athletes at Nebraska institutions to earn compensation for NIL activities. The law also prohibits institutions from preventing athletes from earning NIL income, though athletes cannot use their school's name, logo, or other protected marks without proper licensing authorization.
Nebraska's law, like most state NIL laws, does not eliminate all restrictions. Athletes must still comply with their institution's policies regarding disclosure of NIL deals, conflicts with institutional sponsors, and certain categories of endorsements that may be restricted such as gambling or alcohol advertising.
NIL is a genuine opportunity for athletes to build financial security and develop business skills during their college years. But like any business arrangement, a bad deal can cause real harm. Athletes and families should treat NIL contracts with the same seriousness they would any legal agreement.
What Should Athletes and Families Watch Out For?
The NIL marketplace has grown rapidly and is not without risks. Athletes should be cautious about several common pitfalls:
The Role of NIL Collectives
NIL collectives are organizations, often formed by boosters and fans of a particular school, that pool resources to facilitate NIL deals for athletes at that institution. Collectives have become a significant part of the NIL landscape at major programs. Athletes considering collective-related deals should understand who is behind the collective, how the payments are structured, and whether the arrangement raises any eligibility concerns.
When to Involve an Attorney
Any time an athlete is presented with a formal NIL agreement, having an attorney review the contract before signing is a prudent step. An experienced attorney can identify unfavorable terms, negotiate improvements, and ensure the athlete fully understands their obligations. For athletes who are generating meaningful NIL income, ongoing legal and financial counsel can make a significant difference in protecting and growing that income over time.
The attorneys at Horgan Law Firm provide NIL legal services for Nebraska athletes and their families. Contact us to discuss your situation and how we can help you navigate the NIL landscape.
