NIL RIGHTS & RESPONSIBILITIES

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Student-athletes may:

-Earn compensation from their NIL (when the student-athlete is not engaged in official team activities, as defined by the institution) 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)

-Earn compensation for their autograph provided it does not conflict with a provision of Section 51.9246 of the Texas Education Code.

Texas Education Code 51.9246(g)(4)

-Obtain professional representation (including an attorney licensed to practice law in the State of Texas) for contracts and legal matters related to the use of the student-athlete’s name, image, or likeness ("NIL").

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

Student-athletes shall:

-Disclose NIL activities to the institution (in a manner determined by the institution) PRIOR to signing any proposed contract the student-athlete may sign for the use of the student-athlete's name, image, or likeness ("NIL").

Texas Education Code 51.9246(g)(1)

-Resolve any conflict with institutional contracts or agreements within ten (10) days after initial disclosure by the institution.

Texas Education Code 51.9246(h)

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. athletics scholarship agreement, teams rules, etc.), an institutional contract (e.g. sponsorship agreement involving use of the institution’s trademarks), athletics department policy (e.g. student-athlete code of conduct, etc.), or a provision of the institution’s honor code. 

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

Student-athletes may not: 

-Enter into an NIL contract if the duration of the contract extends beyond the student-athlete's participation in the intercollegiate athletics program. 

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

Student-athletes may not: 

-Enter into a contract for the use of their NIL if the compensation for the use of their NIL is provided in exchange for athletic performance or attendance at the institution.

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

Student-athletes may not: 

-Enter into a contract for the use of their NIL if the compensation for the use of their NIL is provided by the institution.

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

Student-athletes may not: 

-Enter into a contract for the use of their NIL if the compensation for the use of their NIL is provided by the institution in exchange for property owned by the institution (e.g. institution-issued athletics apparel, or athletic equipment owned by the institution).

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

Student-athletes may not: 

-Enter into a contract for the use of their NIL if the compensation for the use of their NIL is provided in exchange for endorsement while using intellectual property or other property owned by the institution (e.g. cannot use or wear institution-issued athletics apparel, or institution-owned equipment or institution-owned intellectual property created as a result of participation in athletics).

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

Student-athletes may not: 

-Enter into a contract for the use of their NIL if the compensation for the use of their NIL is provided in exchange for endorsement of alcohol, tobacco products, e-cigarettes, or nicotine delivery devices, anabolic steroids, sports wagering, casino gambling, firearms the student-athlete cannot legally purchase, or sexually-oriented businesses as defined by 243.002 of the Local Government Code.

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

Student Athletes are not employees of the institution. 

Texas Education Code 51.9246(g)(3)

Institutions must:

-Require all 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 at least 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)

Workshop may not allow any provider of financial aid products or service to market, advertise, or refer their services and/or solicit a student-athlete to use their services. 

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

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 / agent). The student-athlete is responsible for resolving the conflict no later than the 10th day after the date of disclosure:

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

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

Athletic department policy (e.g. Student-athlete's Code of Conduct and Expectations); or

Provisions of the institution’s student honor code.

Texas Education Code 51.9246(h)

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)

Institutions may not:

-Prohibit student-athletes from using professional representation (e.g. lawyers, agents) for contracts / legal matters related to NIL. 

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

Institutions may not:

-Provide or solicit compensation for prospective student-athletes in relation to the use of their NIL. 

Texas Education Code 51.9246(c)(2)

-Create a team contract (or rule) that prohibits or otherwise prevents 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)

Individual, Corporate Entity, and other Organizations 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)

Individual, Corporate Entities, and other Organizations 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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