Can Alabama High School Student-Athletes Profit From Their Name, Image and Likeness?
At the time this article was published, the answer to your question is no. However, Representative Jeremy Gray is trying to change that. If passed, a bill recently introduced by Representative Gray would allow Alabama high school student-athletes to receive compensation for use of their name, image and likeness (NIL).
The newly proposed bill includes requirements that Alabama high school student-athletes must comply with before receiving an NIL deal. For example, student-athletes and their parents or legal guardians must receive “professional guidance” on the potential impacts and consequences of receiving compensation for NIL use. Specifically, Alabama high school student-athletes must be advised on NIL agreements’ tax implications and how these could impact collegiate financial aid. Furthermore, Alabama high school student-athletes may not receive compensation unless they or their parents or guardians notify principals or athletic directors of the intent to enter an NIL agreement at least seven days before entering the agreement.
Compensation for the NIL agreement cannot be contingent on specific athletic performance or achievement, such as points scored, or rewards achieved for athletic performance. Additionally, compensation may not be provided as an incentive to enroll or remain at a particular school. The new bill will also prevent an Alabama high school student-athlete from using, wearing or endorsing a mark, including the student-athlete’s school logo, school name, school mascot, or trademarked logo or acronym of an athletic association like “AHSAA.” Alabama high school student-athletes will also not be able to use their school’s apparel or equipment, including the school’s uniform or apparel displaying a trademarked logo, or the school’s facilities during NIL-related activities for compensation. These NIL-related activities cannot conflict with the school’s policies, including those regarding the use of tobacco, alcohol products or controlled substances.
It is important for Alabama high school student-athletes to retain professionals to advise them on the implications of NIL agreements. Businesses, individuals and collectives seeking to contract with Alabama high school student-athletes should also understand the legal implications of these deals.
Please contact Nicholas Patti or any member of Phelps’ Litigation team if you have questions or need advice and guidance.
