NCAA adopts NIL package to create deal database of those who want to work with athletes

PHOENIX — The NCAA Division I Council approved a package of rules Wednesday related to how athletes are compensated for their celebrity endorsement work and proposed allowing schools to be more involved with such transactions that now total in the millions of dollars across the country.

The package is the NCAA’s attempt to bring transparency to the burgeoning name, image and likeness market and add oversight of those who want to work with the athletes. The policy calls for creation of a database of deals that could be accessed by athletes and schools, a registry of companies that want to work with athletes and recommendations for standardized components of a NIL contract.

Athletes would be encouraged to disclose their deals, but it would not be required.

The proposed NIL regulation, introduced in October, was expected to be adopted at this week’s NCAA convention and go into effect Aug. 1. Division I includes some 350 schools and nearly 200,000 athletes.

New NCAA President Charlie Baker has called for consumer protections to be put in place by the organization to help athletes navigate the largely unregulated market. He was scheduled to give his first state of the NCAA address at the convention later Wednesday.

The NCAA lifted its ban on athletes earning money through sponsorship and endorsement deals in 2021, and the lack of detailed rules combined with a patchwork of state laws have created uncertainty for both athletes and schools. It also allowed booster-funded NIL collectives to become the predominant way for athletes to cash in on their status.

Baker’s proposal in December to create a new tier of Division I in which members would be required to provide at least $30,000 in trust funds annually to at least half their athletes also include a push for all D-I schools to bring NIL activities in-house.

Schools could facilitate deals and connect athletes with companies, but they would still be prohibited from using NIL payments as a recruiting inducement and directly paying an athletes for NIL.