Louisiana Expands NIL Opportunities for Colleges and Student-Athletes

Developments in name, image and likeness (NIL) continue to revolutionize the landscape of college athletics. As an early adopter, Louisiana remains at the forefront of these changes. The rules governing NIL are an ever-changing landscape that differs from state to state and lacks nationwide uniformity. Recently, Louisiana updated its law governing NIL, expanding the ability of colleges and universities to assist intercollegiate athletes in capitalizing on their name, image and likeness.

In the most recent legislative session, Louisiana adopted changes to its governing NIL provisions. In Louisiana, NIL is governed by La. R.S. 17:3703. This act’s changes come as the NCAA and the largest athletic conferences have agreed to a settlement in the House v. NCAA case, which is likely to remake the landscape of intercollegiate athletics.

The act provides that an intercollegiate athlete at a postsecondary educational institution may earn compensation for the use of their name, image or likeness. The recent changes, which took effect on May 28, allow colleges and universities to take a more active role in assisting intercollegiate athletes in capitalizing on their right to publicity. The revisions to Louisiana law now include a trigger that, once allowed either by court order, settlement agreement, or a change to the bylaws of athletics-governing organizations like the NCAA, will permit colleges and universities to participate in NIL endeavors directly.

The law continues to allow colleges and universities to prohibit contracts that contradict their values, such as contracts to promote:

• Gambling
• Alcohol
• Sports betting
• Performance-enhancing supplements
• Controlled substances
• Marijuana
• Tobacco
• Any product inconsistent with the value and mission of the institution or that reflects adversely on the university or athletics

Additionally, compensation for NIL cannot be based on an intercollegiate athlete's athletic performance, which prohibits pay-to-play style schemes. NIL contracts also cannot require that an intercollegiate athlete attend a particular institution.

The law also places restrictions on who can assist intercollegiate athletes by stating that agents or advisers may provide counsel and assistance for NIL contracts. But those agents or advisers must be registered with the State of Louisiana and the LSU Compliance Office. The law continues to provide that the duration of a contract for representation of an intercollegiate athlete or compensation for the use of the athlete’s name, image or likeness shall not extend beyond the athlete’s participation in an athletic program at a postsecondary educational institution.

Louisiana is also one of a growing number of states that allow high school athletes to receive NIL benefits.

Louisiana's proactive stance on NIL legislation continues to pave the way for intercollegiate athletes to benefit from their personal brands while maintaining the integrity and values of collegiate sports.

Contact Michael B. Victorian or any member of Phelps’ Litigation or Media, Sports and Entertainment teams if you have questions or need advice and guidance.