NIL Licensing

Athlete-Entrepreneurs, We See You

Thanks to new legal rights, student-athletes are finally making money from their hard work.

You need a lawyer who understands the complex web of laws and rules that govern name-image-and-likeness licensing deals. NIL deals are complicated. Dunlap Law attorneys are here to advocate for you and protect you.

Navigating Name, Image, and Likeness (NIL) Laws: Empowering Athletes

Welcome to our comprehensive guide on Virginia’s Name, Image, and Likeness (NIL) law—a revolutionary shift in the world of collegiate and professional sports. As of July 1, 2022, Virginia Code grants student-athletes the right to earn compensation from licensing of their NIL. This change has transformed the landscape for student-athletes, allowing them to capitalize on their personal brand without compromising their eligibility to participate in collegiate sports. Let’s delve into the core aspects of Virginia’s NIL law, how it works, and the implications it holds for athletes, institutions, and the sports industry.

Competing Legal Principles

The right to control use of your name-image-and-likeness is countered by the First Amendment rights held by others to use your NIL in certain circumstances. Currently, a patchwork of court decisions determines where the line is between a student-athlete’s right to publicity and others’ First Amendment rights. Over the last 70 years, courts have held that First Amendment rights protected an artist’s rendering of quarterback Joe Montana, parody trading cards with caricatures of Major League Baseball players, and a fantasy sports league’s use of athletes’ images.

Practically speaking, the right to publicity allows athlete-entrepreneurs to control their NIL in the context of endorsements. However, it does not create a blanket right to block use of your NIL in all contexts.

For example, a journalist’s First Amendment right to publish a story on an athlete’s outstanding performance will not violate her right to control commercial use of her NIL.

NIL deals are complex. Like any business deal, these licensing deals need careful legal review. As business lawyers and IP attorneys, we can help student-athletes (as we see it, “athlete-entrepreneurs”) understand and negotiate the terms in their NIL business deals.

Virginia’s NIL Law

Virginia’s 2022 law gives student-athletes a statutory right to earn compensation from use of their name, image, or likeness and to be represented by an agent and an attorney for purposes of securing and negotiating NIL deals.

Institutions – and that means colleges but also athletic conferences – cannot declare a student-athlete ineligible or reduce, revoke, cancel, or not renew a student-athlete’s scholarship because the student-athlete signed a NIL deal.

But Virginia’s law includes a long list of limitations that prevent student-athletes from endorsing certain products or activities. Also, there are limits on when student-athletes may engage in activities for their NIL deals and prohibitions on use of their institution’s “facilities.” Further, student-athletes have duties to disclose their NIL deals to their colleges. In short, Virginia’s law is complicated with a host of caveats, limitations, and prohibitions. It’s a briar patch and student-athletes need a business lawyer who understands it.

No student-athlete should sign a NIL deal without their attorney’s review. There is too much at stake. Because we recognize that athlete-entrepreneurs need our legal counsel but have little or no money to cover the cost, our fee is based on the athlete’s success. We charge a percent of the deal’s value, allowing us to guide you through the entire process without you paying out-of-pocket. 

Key Features and Implications

Empowerment of Athletes:

NIL laws empower athletes to leverage their popularity and personal brand to secure endorsement deals and collaborations, reflecting the true value of their talents and hard work.

Entrepreneurial Opportunities:

Athletes are now entrepreneurs. We can guide you on the many facets of starting your own businesses or creating merchandise, without fear of violating amateurism rules.

Fairness and Equity:

These laws promote fairness and equity by allowing athletes from all sports and backgrounds to benefit from their NIL, bridging the gap between high-revenue and lower-revenue sports.

Educational Value:

Student-athlete-entrepreneurs gain valuable real-world experience in marketing, negotiation, and financial management through NIL opportunities, enhancing their education beyond the classroom.

Recruitment Advantage:

Schools in states with NIL laws will have an advantage in recruiting top-tier talent by promoting the potential for athletes to build their personal brands while

competing at a high level. We expect the proliferation of state NIL laws to continue because of the market forces at work.

Compliance Challenges:

Institutions and athletes must navigate a complex landscape of state-specific laws, NCAA regulations, and potential conflicts of interest to ensure compliance. Also, Congress is studying the issue and responding to pressure from the NCAA to pass a federal NIL law that will preempt laws passed at the state level. We are tracking these developments closely.

Long-Term Impact:

NIL laws have the potential to reshape college sports and even influence professional leagues, as athletes enter the next phase of their careers with a stronger personal brand.

Navigating the Terrain:

You Need a NIL Lawyer. While NIL laws bring unprecedented opportunities, they also present challenges that athletes and institutions must manage effectively.

Legal Considerations:

Athletes need to understand the legal implications of contracts and agreements they enter into, ensuring that they safeguard their rights and interests. No student-athlete should sign a NIL deal without their attorney’s review. There is too much at stake, including but not limited to: loss of eligibility or scholarships, lawsuits initiated by their sponsor, school, or conference, and NCAA or conference enforcement actions.

Branding and Reputation:

Athletes should be mindful of the brands they associate with, as their choices can impact their personal brand and reputation. Virginia’s NIL law prohibits student-athletes from endorsing certain products or services. As NIL lawyers, we can help clients navigate this complexity and understand which brands meet the legal standards.

Financial Literacy:

With newfound income streams, athletes should prioritize financial literacy and seek guidance to make informed financial decisions. We believe that student-athletes are best-served when they leverage a NIL deal to support their long-term well-being. We take a holistic view of our clients’ goals and needs so that our advice is tailored to help student-athletes create the life they want, now and into the future.

Balancing Priorities:

Student-athletes must strike a balance between their academic commitments, sports training, and NIL opportunities. We help ensure that the terms in the NIL contract support a student-athlete’s overall well-being and create reasonable balance.

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