Student Athlete or Influencer? Maybe both. NIL is another term we have become familiar with and tend to use generically. It stands for “Name, Image, Likeness”. NIL is not a new term and NIL rights come in many shapes and sizes. In fact, regulation of the use of an individual’s NIL has been around for […]

Student Athlete or Influencer? Maybe both.
NIL is another term we have become familiar with and tend to use
generically. It stands for “Name, Image, Likeness”. NIL
is not a new term and NIL rights come in many shapes and sizes. In
fact, regulation of the use of an individual’s NIL has been
around for a long time. These rights are often covered under state
laws, known as “rights of publicity”. The first right of
publicity law was enacted in New York in 1903 and today, only 22
states have specific statutes (there are also some common law
rights).
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
Contractual Clarity is Imperative. Any contract
between a brand and an athlete must outline as specifically as
possible how the athlete (or influencer)’s identity will be
used such as what images, videos, or likenesses will be featured,
and for how long. Include clauses that mandate compliance by all
the parties under all the applicable laws and rules.
The term “Influencer” is well established in our
vernacular because let’s face it, Influencers are literally
everywhere. The Federal Trade Commission (“FTC”), defines
an Influencer as someone who endorses products or services through
social media or other platforms and has issued a plethora of rules
and regulations related to both Influencers and the brands that
hire them (FTC Endorsement Guides: https://www.ecfr.gov/current/title-16/chapter-I/subchapter-B/part-255).
Influencers are a powerful, prevalent and effective tool for
brands, advertisers, and agencies alike. Even though we use the
term generically to refer to anyone on social media with any kind
of following and “influence”, in truth influencers and
their influence, aren’t all the same.
It’s still the wild wild west out there (which by
the way, is how we lawyers talked about the world of Influencers
just a few short years ago). Make sure you consult legal
professionals early – whether you’re an athlete or
Influencer, a corporate sponsor, a brand, an advertising agency or
collective, or a guardian. And perhaps most importantly, engage a
team of individuals who are well-versed in the relevant
regulations. This helps everyone involved understand and uphold
their obligations and maximize the benefits of any deal. You can
expect plenty of change in this space as the world of college
athletics and influencer marketing continues to grow.
When a college athlete, professional influencer, or celebrity
enters into an NIL deal, they may be leveraging their right of
publicity to endorse products or services. Once the deal involves
the promotion of goods to the public, the FTC’s rules on
endorsements apply the same as they would to a more traditional
“influencer”. Any student athlete will potentially need
to understand and navigate not just NCAA rules, but the FTC rules,
individual states rights of publicity, platform rules….. and the
constantly changing nature of all of it.
Be Consistent and Authentic. From a marketing
standpoint, an athlete or influencer wants to preserve authenticity
to keep their fans’ trust. Leveraging one’s NIL in a way
that aligns with personal values is important; athletes may also
need to take into consideration other contractual obligations or
requirements.
The term “NIL” has bubbled to the top most recently
because of the National Collegiate Athletic Association
(“NCAA”)’s recent decision to allow athletes to
profit from their NIL. It includes everything from an athlete’s
face or name on a jersey to a recognizable feature like a signature
catchphrase or iconic silhouette. While not all athletes are
considered “Influencers”, and certainly not all
Influencers are athletes, there is significant crossover. Prior to
mid-2021, the NCAA imposed strict amateurism rules that limited
student-athletes’ ability to earn money based on their athletic
status. The intent was to preserve the amateur status of these
athletes and it meant that student athletes were prohibited from
receiving compensation for the use of their NIL. With new NCAA
guidelines however, student-athletes can now receive compensation
for endorsements, appearances, social media promotions, and other
NIL opportunities, much like a traditional Influencer.
Home Team or Away? Know your jurisdiction(s).
Some states have explicit statutes governing the right of
publicity, while others rely on court-developed common law. This
patchwork of laws means an NIL deal that is valid in one state
might encounter legal challenges in another. As college athletics
and influencers become increasingly global (with deals spanning
multiple states or countries), it’s essential to consider how
each jurisdiction handles right of publicity claims and other legal
challenges. The FTC rules apply to U.S. promotions, but
international regulations might also come into play with a global
audience.
Regardless of the type of NIL deal, a few things remain
constant: