Student-athletes may earn compensation for the use of their Name, Image and Likeness (NIL) if the compensation is provided by a third party unaffiliated with the student-athlete’s member institution and may not lose their athletic eligibility provided they follow the guidelines of the National Junior College Athletic Association (NJCAA), Alabama Community College Conference (Conference), Alabama Community College System (ACCS), and/or State of Alabama policies and procedures.
Under NJCAA guidelines, the following acts shall not cause a student-athlete to lose their amateur status:
- Participating in radio or television programs for the purpose of promoting an amateur athletic event.
- Receiving compensation for supervision of physical education, playground, or recreational activities.
- Receiving compensation for use of NIL to promote any commercial product or enterprise, or public or media appearance so long as it does not conflict with the institutions existing partnerships, sponsorships, and agreements.
- A member institution allowing a student-athlete to receive compensation in compliance with their state law.
Alabama Community College Conference Guidelines
A Conference member shall prohibit a student-athlete from entering into an endorsement contract with, or otherwise receiving compensation from, any of the following categories of brands or companies:
- A tobacco company or brand, including any tobacco product, alternative nicotine product, electronic nicotine delivery system, or any electronic nicotine delivery system retailer, or any specialty retailer of electronic-nicotine delivery systems or tobacco specialty store.
- Any alcohol beverage company or brand.
- Any seller or dispensary of a controlled substance, including, but not limited to, marijuana.
- Any adult entertainment business.
- Any casino or entities that sponsor or promote gambling activities.
A Conference member may prohibit a student-athlete compensation contract if such contract does not appear to be based on fair market value in the reasonable and good faith judgment of the member institution or if in the reasonable and good faith judgment of the member institution such contract would negatively impact or reflect adversely on the Conference member or its athletic programs.
A Conference member may prohibit a student-athlete from wearing any item of clothing, shoes, or other gear with the insignia of any entity while wearing athletic gear or uniforms licensed by a Conference member or otherwise competing in any athletic competition or member sponsored event.
Student-athlete may not wear any school and/or team apparel for any NIL activity, including, but not limited to, commercials, social media platforms, photos, etc.
Compensation for a student-athlete’s NIL may not be conditioned on athletic performance or attendance at a particular Conference member.
Compensation for the use of a student-athlete's NIL shall be provided only by a third party not owned or operating under the authority of the student-athlete's member institution.
A Conference member, an entity with the purpose of supporting or benefitting the member or its intercollegiate sports, boosters, or any officer, director, or employee of the institution or entity may not compensate or cause compensation to be directed to a student-athlete or the family of a student athlete for use of their NIL.
Before any contract for compensation for the use of a student-athlete's NIL is executed, and before any compensation is provided to the student-athlete in advance of a contract, the student-athlete shall disclose that contract to his or her member institution in a manner prescribed by the member institution. The institution shall review such contract to determine its compliance with this policy.
A contract for the use of a student-athlete’s NIL, which is formed while the student-athlete is participating in an intercollegiate sport at a Conference member, may not extend beyond the student-athlete's participation in the sport at the institution.
A student-athlete may not receive or enter into a contract for compensation for use of his or her NIL in a way that also uses any registered or licensed marks, logos, verbiage, or designs of a Conference member, unless the Member has provided the student-athlete with written permission to do so prior to the execution of the contract. If permission is granted, the Conference member, by agreement of all parties, may be compensated for the use in a manner consistent with market rates or prior practice.
A Conference member may not prevent or unreasonably restrict a student-athlete from obtaining professional representation for the purpose of securing compensation for the use of the student-athlete's NIL.
An individual representing a student-athlete for purposes of exploring or securing compensation for the student-athlete's NIL shall be registered as an athlete agent with the state pursuant to Section 8-26B-4, Code of Alabama 1975, or shall be a licensed attorney and a member in good standing of the Alabama State Bar.
A student-athlete participating in intercollegiate sports at a Conference member shall provide the institution with written notice at least seven days prior to entering into a representation agreement with any individual for purposes of exploring or securing compensation for use of the student-athlete's NIL.
A student-athlete’s failure to disclose in advance any contract for compensation for the use of the student-athlete’s NIL, failure to disclose in advance any representation agreement with any individual for purposes of exploring or securing compensation for use of the student-athlete’s NIL, or a student-athlete entering into a contract for compensation for the use of their NIL after being advised by the student-athlete’s member institution that the proposed contract for compensation was not in compliance with this policy, shall be grounds for the revocation of the student-athlete’s privilege of participating in the Conference member’s athletic programs.
Financial Aid and Tax Implications
Student-athletes should be aware that receiving compensation for NIL activities could have an impact on their financial aid, especially for those receiving Pell Grants or other need-based aid.
Conference members shall not revoke or reduce an athletics scholarship as a result of a student-athlete earning compensation in accordance with NIL activities, unless otherwise required by federal laws or institutional standards governing need-based awards due to income received.
An athletics scholarship award from Conference members is NOT considered compensation for use of a student-athlete's NIL.
Student-athletes are encouraged to consult with their member’s financial aid office to fully understand these potential impacts.
Entering into NIL agreements could also present tax implications. Student-athletes should consult with a tax professional regarding these issues.