NIL Frequently asked questions ("FAQ")

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May Texas student-athletes earn compensation from their NIL without losing eligibility and/or a scholarship?

Yes. Texas student-athletes may earn compensation from their NIL without being subject to loss of eligibility for scholarships, grants, or other forms of institutional financial aid. 

Texas Education Code 51.9246(c)(1)(A); 51.9246(e)(1)

May Texas student-athletes earn compensation for their autograph provided it does not conflict with other provisions of the law?

Yes. Texas student-athletes may earn compensation for their autograph provided it does not conflict with other provisions of the law.

Texas Education Code 51.9246(g)(4)

May Texas student-athletes obtain professional representation for contracts and legal matters related to the use of the student-athlete’s NIL?

Yes. Texas student-athletes may obtain professional representation for contracts and legal matters related to the use of their NIL.

Texas Education Code 51.9246(c)(1)(B); 51.9246(e)(2)

Must student-athletes disclose NIL activities to the institution, in a manner determined by the institution, PRIOR to signing an NIL contract?

Yes. Texas student-athletes must disclose NIL activities to the institution, in a manner determined by the athletic institution, PRIOR to signing a contract.

Texas Education Code 51.9246(g)(1)

Must student-athletes resolve conflict with the institution regarding NIL contracts or agreements within ten (10) days after initial disclosure?

Yes. Student-athletes must resolve conflict with the institution regarding NIL contracts or agreements within ten (10) days after initial disclosure.

Texas Education Code 51.9246(h)

May student-athletes enter into a contract for use of their NIL if any provision in the contract conflicts with the provision of a team contract (e.g. team rules, athletics scholarship agreement, etc.), and institutional contract (e.g. sponsorship agreement involving use of institution’s trademarks), athletics department policy (e.g. student-athlete code of conduct, etc.), or institution’s honor code?

No. Student-athletes may not enter into a contract for use of their NIL if any provision in the contract conflicts with the provision of a team contract (e.g. team rules, athletics scholarship agreement, etc.), and institutional contract (e.g. sponsorship agreement involving use of institution’s trademarks), athletics department policy (e.g. student-athlete code of conduct, etc.), or institution’s honor code.

Texas Education Code 51.9246(g)(2)(A)

May student-athletes enter into a contract that extends beyond their participation in intercollegiate athletics?

No. Student-athletes may not enter into a contract that extends beyond their participation in intercollegiate athletics. 

Texas Education Code 51.9246(g)(2)(C)

May student-athletes receive compensation for use of their NIL if it is provided in exchange for athletic performance or attendance at the institution?

No. Student-athletes may not receive compensation for use of their NIL if it is provided in exchange for athletic performance or attendance at the institution.

Texas Education Code 51.9246(g)(2)(B)(i)

May student-athletes receive compensation for use of NIL if it is provided in exchange for property owned by the institution (e.g. institution-issued athletics apparel or equipment)?

No. Student-athletes may not receive compensation for use of NIL if it is provided in exchange for property owned by the institution (e.g. institution-issued athletics apparel or institution-issued athletic equipment).

Texas Education Code 51.9246(g)(2)(B)(iii)

May student-athletes receive compensation for use of NIL if it is provided by the institution?

No. Student-athletes may not receive compensation for use of their NIL if it is provided by the institution.

Texas Education Code 51.9246(g)(2)(B)(ii)

May student-athletes receive compensation for use of their NIL if it is provided in exchange for an endorsement while using intellectual property or other property owned by institution (e.g. institution-issued athletics apparel or institution-owned equipment or intellectual property created as a result of participation in athletics)? 

No. Student-athletes may not receive compensation for use of their NIL if it is provided in exchange for an endorsement while using intellectual property or other property owned by institution (e.g. institution-issued athletics apparel or equipment or intellectual property created as a result of   participation in athletics).

Texas Education Code 51.9246(g)(2)(B)(iii)

May student-athletes receive compensation for use of their NIL if it is provided in exchange for endorsement of alcohol, tobacco products, e-cigs, or nicotine delivery devices, anabolic steroids, sports wagering, casino gambling, firearms that the student-athlete cannot legally purchase, or a sexually oriented businesses as defined by 243.002 Local Government Code?

No. Student-athletes may not receive compensation for use of their NIL if it is provided in exchange for endorsement of alcohol, tobacco products, e-cigs, or nicotine delivery devices, anabolic steroids, sports wagering, casino gambling, firearms that the student-athlete cannot legally purchase, or a sexually oriented businesses as defined by 243.002 Local Government Code.

Texas Education Code 51.9246(g)(2)(B)(iv)

Does the Texas NIL law make student-athletes employees of the institution?

No. The Texas NIL law does not make student-athletes employees of the institution.

Texas Education Code 51.9246(g)(3)

 What is a financial literacy and life-skills workshop and how does it relate to NIL?

Institutions must require all Texas student-athletes to attend a financial literacy and life skills workshop at the beginning of student-athletes first and third academic years at the institution. The workshop must be five hours in duration and include information on financial aid, debt management, time management, budgeting, and academic resources available to the student-athlete. 

Texas Education Code 51.9246(i)

I am provider of financial products, may I advertise during an institution's financial literacy and life-skills workshop?

No. An institution's financial literacy and life-skills workshop may not allow any provider of financial aid products or service to market, advertise, or refer their services or solicit a student-athletic to use their services. 

Texas Education Code 51.9246(i)(1),(2)

What if an institution finds a conflict with a student-athlete's disclosed NIL activity?

Institutions must identify if any of a student-athlete's disclosed NIL activities conflict with a provision in any of the following and promptly disclose the conflict to the student-athlete or their professional representative (e.g. attorney). The student-athlete is responsible for resolving the conflict no later than the 10th day after the date of disclosure.

Potential conflicts may include (but are not limited to) a conflict with the following:

Student-athlete's team contract (e.g. team rules, athletic scholarship agreement);

Institutional contract (e.g. sponsorship agreement involving use of institution’s trademarks)

Athletic department policy (e.g. student-athlete code of conduct); or

Provisions of the institution’s student honor code.

Texas Education Code 51.9246(h)

I am a Texas student-athlete. Can my athletic department prohibit me from earning compensation from my NIL when not engaged in official team activities?

No. Institutions may not prohibit student-athletes from earning compensation from their NIL when not engaged in official team activities (as defined by the institution). 

Texas Education Code 51.9246(c)(1)(A)

I am a Texas student-athlete. Can my athletic department prohibit me from hiring an attorney to advise me regarding the use of my NIL?

No. Institutions may not prohibit student-athletes from using professional representation (e.g. lawyers) for contracts and/or legal matters related to their NIL. 

Texas Education Code 51.9246(c)(1)(B)

I am a Texas high school recruit. Can the athletic department at one of my prospective universities offer me an NIL deal?

No. Institutions may not provide or solicit compensation for a prospective student-athlete in relation to the use of their NIL. 

Texas Education Code 51.9246(c)(2)

I am a Texas student-athlete at a major university. Can my athletic department create a team rule that prohibits me from engaging in NIL activities when not engaged in official team activities?

No. Institutions may not create a team contract (or rule) that prohibits student-athletes from engaging in NIL activities when not engaged in official team activities (as defined by the institution). 

Texas Education Code 51.9246(f)

Can an individual, Corporate Entity, and other organization enter into an NIL agreement with a Texas student-athlete prior to enrollment in an institution of higher education?

No. An individual, corporate entity, and other organization may not enter into any NIL agreement with a prospective student-athlete prior to enrollment in an institution of higher education. 

Texas Education Code 51.9246(j)(1)

Can an individual, corporate entity, and other organizations use inducements of future NIL deals to recruit a prospective student-athlete to any Texas institution?

No. An individual, corporate entity, and/or other organization may not use inducements of future NIL arrangements to recruit a prospective student-athlete to any Texas institution. 

Texas Education Code 51.9246(j)(2)

Sources:

Texas Education Code 51.9246

Texas Name, Image, Likeness (NIL) Bill Summary

M. Duane Miller: The Texas NIL Lawyer

P.O. Box 845

Belton, Texas 76513

(254) 933-3522

duane@mduanemiller.com

Monday - Friday 8:30 AM - 5:00 PM 

M. Duane Miller is licensed by the Supreme Court of Texas to practice in Texas State Courts.   

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