NCAA's Alternative NIL Proposal Waives Bylaw 12, But Limits Compensation

The proposal includes a list of prohibitions that would be inconsistent with interim NIL policy and NCAA legislation.

Kirby Lee-USA TODAY Sports

As the NCAA looks to enact its recent temporary name, image and likeness proposal, athletes will follow the laws in the state where the school is located or follow the school's policy if the state does not have specific NIL guidelines.

However, according to the copy of the solution obtained by Sports Illustrated's Ross Dellenger, the NCAA will waive Bylaw 12, which prohibits athletes from pay for play, effective July 1. Still, within the alternative proposal, the NCAA has outlined a list of limitations for athletes from NIL compensation. These prohibitions will remain in effect, per the proposal, until Congress passes a uniform bill that governs NIL-related issues.

A draft of NCAA’s temporary NIL solution has been obtained by @SInow. Much of it is as we reported earlier - athletes can follow state law or school’s policy - but with several guidelines, primarily prohibiting any pay for play.

The NCAA is waiving Bylaw 12, basically. pic.twitter.com/CFZeU0ecOv

— Ross Dellenger (@RossDellenger) June 26, 2021

Among other prohibitions in the proposal, NIL compensation cannot be given or offered to players based on their enrollments at specific institutions. So, for example, a player cannot be awarded specific NIL compensation that is dependent their commitment to play football at only Alabama. Players cannot be offered financial incentives within any NIL deals based on athletic performance, according to the proposal. This means that UNC quarterback Sam Howell, for example, cannot receive an increase in NIL compensation based if he were to throw for more than 3,000 yards or 30 touchdowns, etc.

While the prohibitions have been outlined by the NCAA, the respective schools remain responsible for determining if an athlete's NIL activities are consistent with the school or state law. 

Kentucky governor Andy Beshear signed an executive order Thursday to allow name, image and likeness compensation for college athletes, effective July 1. Six other states passed their own legislation that was later signed by their respective governors—Alabama, Florida, Georgia, Mississippi, Texas and New Mexico.

The NCAA's temporary NIL solution—an alternative model—could grant just as many rights to athletes as permissive state laws. In this plan, the NCAA is avoiding responsibility, placing the onus on schools and conferences to draft their own proposals to avoid legal issues.

Several student athletes who serve on the Division I Student Athlete Advisory Committee spoke out in opposing the NCAA's alternative NIL proposal, referring to it as a temporary fix, according to Dellenger.

More: Student-Athlete Committee Members Speak Out to Oppose NCAA's Alternative NIL Proposal

The athletes are in favor of the policy created by the NCAA Legislative Solutions Group, a committee of school and conference athletic officials who crafted a 30-page legislative proposal to govern NIL. The legislative proposal, however, has failed twice in being approved.