The rules are in. What UK players can (and can’t) do to make money off NIL reforms.
A few hours before NCAA name, image and likeness reforms were set to take effect, the University of Kentucky released a more detailed plan outlining exactly how its student-athletes would be permitted to make money amid the changing college sports landscape.
Following a slew of state action and federal inquiry, a temporary measure approved by the NCAA this week will permit college athletes to earn money while still retaining their eligibility starting Thursday, with more permanent guidelines governing NIL reform expected to be finalized in the coming months.
Last week, Kentucky Gov. Andy Beshear signed an executive order ensuring that college athletes inside the state would not be left behind when other states’ NIL legislation went into effect Thursday.
The following day, UK Athletics Director Mitch Barnhart reiterated his support for Beshear’s measure but gave few specifics on how the Wildcats’ student-athletes would be permitted to profit moving forward.
Many of those questions were answered with UK’s release Wednesday night.
What can UK student-athletes do to make money off their name, image and likeness?
UK will permit its athletes to profit via several avenues, including in-person appearances, social media posts, media appearances (example: an appearance on a talk show), and through digital/printed materials (examples: billboards and online advertisements).
In-person appearances such as sports camps and autograph sessions are expected to be common money-making ventures for college athletes. Those players who have vast social media presences are also expected to be able to leverage that reach into advertising opportunities.
Barnhart noted Friday that the UK student-athlete with the biggest social media platform is women’s track and field standout Masai Russell, who has 150,000 Instagram followers and more than 300,000 followers on TikTok.
UK players will also be able to develop non-fungible tokens (NFTs) to use as money-making devices, as long as they don’t use “intellectual property” of the University of Kentucky as part of that process.
What products are UK student-athletes not allowed to advertise?
The list here is quite lengthy.
Beshear’s executive order allowed schools to prevent student-athlete compensation for certain categories, including those that might be in conflict with that school’s pre-existing endorsements.
According to UK’s guidelines, its athletes will not be permitted to endorse lotteries, casinos, sports wagering facilities or other similar outlets; any products and establishments that market products exclusively to people 18 years of age or older; adult entertainment (examples: strip clubs and pornography); and tobacco, marijuana, nicotine vapor products.
UK athletes also won’t be permitted to endorse sports apparel and footwear during team activities — Kentucky has a major endorsement deal with Nike — nor will players be allowed to endorse providers of higher education (like other colleges or universities), health care or other “related services.”
The university’s guidelines note that “failure to abide by these may result in loss of eligibility, including suspension from team activities or competition, and/or additional NIL education or training.”
What other guidelines must Kentucky’s players follow?
UK’s NIL rules state that players cannot miss classes or other academic obligations (like tutoring) to participate in a promotional activity, nor can they miss required team activities — including practice and games — to take part in such activity.
Players also cannot use university facilities for such ventures.
Additionally, UK players are not permitted to use the school’s trademarks (like logos, nicknames, team names, slogans, etc.) or copyrighted content unless an additional agreement is reached. UK says use of such trademarks will be permitted in some instances but only through approval from other university partners and rights holders (like JMI Sports).
Can UK coaches or staff members arrange endorsement deals or pay players directly?
No. UK’s rules clearly state that UK employees (including but not limited to coaches and athletics department staff) are not permitted to pay players or arrange for compensation through name, image and likeness deals. UK employees (including coaches) are not allowed to call companies on a player’s behalf and are not permitted to provide companies with a player’s contact information.
Can UK student-athletes receive money from boosters?
The short answer is yes.
Players will not be allowed to be paid directly by UK, and boosters are also prohibited from compensating players for direct athletic achievement or as an inducement to attend the school. (Example: recruits can’t be paid to come to Kentucky).
But, money can still pass from boosters to players.
UK’s rules will allow for its players to enter into “genuine” name, image and likeness agreements with business entities that are operated by an individual who is also a booster, “so long as the agreement is not a payment, provision, or promise of any other consideration or benefits by the university or by any representative of athletics interests or any person or entity acting on behalf of the university.”
Simply put, boosters can pay UK athletes a fair market rate to advertise their products as long as they’re not working directly with the university to arrange such deals.
What is the process for UK players who want to endorse a specific product?
Under the new UK policy, players are required to disclose any proposed contract or agreement seven days prior to the activity to the UK Athletics Compliance Office. That office will then review the proposal before approving the money-making venture. If the office does not approve a deal, the player cannot move forward with the proposal.
If an athlete does not go through this disclosure process, it could result in a loss of eligibility, including suspension from the team.
Can players use agents to arrange name, image and likeness deals?
Yes. UK players are allowed to seek the use of agents to provide counsel on specific NIL agreements, but agents are not to be used for future professional playing opportunities. Any agent used by a UK player must be registered with the school’s compliance department and the Commonwealth of Kentucky.
Players can still be ruled ineligible if they — or their family or friends — accept a benefit from an agent.
Student-athletes will also have to pay taxes on any NIL compensation that they receive, and UK is advising its players to consult a financial adviser, accountant or tax attorney for specific reporting requirements.
