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