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McDaniel College

Official Site of McDaniel Athletics

Name, Image & Likeness (NIL)

NIL Disclosure Form

What is NIL?

NIL permits student-athletes to receive compensation from third parties for the use of their Name, Image, and Likeness (NIL) through endorsements or business activities. Student-athletes may not receive compensation from their institutions. This interim policy, adopted by the NCAA, became effective in July, 2021. Per the policy:

  • Individuals may engage in NIL activities that are consistent with the law of the state in which they attend college. If applicable, residential state laws may also apply.
  • Individuals may use a professional services provider for NIL activities.
  • College athletes who attend a school in a state without a NIL law may engage in NIL activity without violating NCAA rules related to name, image, and likeness.
  • State law and/or institutions may establish policies requiring reporting and setting other expectations.

What is NIL not?

  • NIL activity may NOT be a substitute for pay-for-play.
  • NIL activity may not be a conduit for impermissible inducements.
  • NIL does not permit individuals to receive compensation from their institutions.

State Law

  • In addition to standard NIL legislation, Maryland's Jordan McNair Safe and Fair Play Act takes an unprecedented stance on health and safety standards for student-athletes at Maryland's public universities.

What does a student-athlete need to do? A timeline of NIL activities

  1. Review and understand the opportunity presented to engage in NIL activity.
  2. Determine that the activity is not "pay-for-play" or an impermissible inducement.
  3. Consult with the athletics department with regard to specific conditions that may exist.
  4. Individual should report NIL activities per state law and with an Institutional Reporting Form.
  5. Individual decides whether to engage in NIL activity.

Financial Aid and Tax Implications for Student-Athletes

  • A student-athlete's compensation, including NIL compensation, may change need based school, state, or federal financial aid or the Pell Grant.
  • Schools may see an increase in students with personal compensation that impacts the application of the school's financial aid policies.
  • Reporting of NIL compensation for tax purposes should follow state and federal laws.
  • Implications for international student-athletes may include visa conditions and tax protocols, among other possible issues.  Those student-athletes should consult with proper government agencies for guidance on potential NIL agreements.

Frequently Asked Questions

What support will McDaniel provide?

  • Staff will not create any content or make any arrangements for NIL activities and deals for student-athletes.
  • Coaches and staff may assist in educating about NIL opportunities but will not influence the process in any way.
  • Use of institutional marks, logos, uniforms, or anything that identifies the College are prohibited.
  • The administrative staff will meet with any student-athlete considering NIL activities.

Can I use an agent to help negotiate NIL deals?

  • Yes, for NIL purposes only. An agent cannot be used for future professional playing opportunities.

What happens if I do not report NIL activity to my compliance office?

  • You may lose eligibility and / or be suspended from team activities.

Is a "booster" allowed to pay me for use of my name, image, and likeness?

  • Yes. However, a "booster" or donor is only permitted to pay you for use of your name, image, and likeness if:
    • It is not used as a recruiting inducement or extra benefit;
    • It is not based on athletic performance or achievement;
    • It is not influenced in any way by a coach or any institutional staff member.  

Can NIL earning affect my financial aid?

  • Yes. Money from NIL is considered additional taxable income, which would be reported on any need-based financial aid application. A change to an athlete's adjusted gross income may change a student's financial aid profile and potentially reduce eligibility for aid including Pell Grant or any other need-based financial aid.

Who manages athletics compliance?

  • It is the responsibility of each student to determine compliance risk, not the institution.