NCAA Releases NIL Memo, Warns Schools That Rules Supercede State Laws

This letter comes after some states have or are planning to establish state laws that would contradict the NCAA’s rules.

The NCAA appears set to crack down on NIL violations for schools across the country after NCAA executive vice president of regulatory affairs Stan Wilcox sent a memo to schools on Tuesday stating that any school that violates NCAA rules, despite what its state laws allow, could be punished.

This memo comes after various states in the SEC footprint have or are planning to establish laws that allow student-athletes to receive NIL money through schools’ fundraising arms. 

For example, a bill in Texas is set to take effect on July 1 that allows school fundraising groups to spend money on NIL endorsements, and fans who donate to the groups could earn special benefits, such as Texas A&M giving fans priority for game tickets. Wilcox already sent a letter back in March reminding schools not to follow this practice. Other states, including Arkansas, Missouri and Oklahoma, have established similar practices. The laws also include language prohibiting the NCAA from penalizing schools for following them. 

Here is the full NCAA memo, obtained by Sports Illustrated’s Ross Dellenger:

In a memo obtained by @SINow, the NCAA strongly clarifies its NIL policy by warning schools that (1) they must follow NCAA rules even if they conflict with state laws and (2) entities such as school foundations are prohibited from NIL & offering donor incentives for NIL giving. pic.twitter.com/OK0kID7nuW

— Ross Dellenger (@RossDellenger) June 27, 2023

“The Association has been clear and maintains that schools must adhere to NCAA legislation (or policy) when it conflicts with permissive state laws,” Wilcox writes. “In other words, if a state law permits certain institutional action and NCAA legislation prohibits the same action, institutions must follow NCAA legislation.”

Additionally, Wilcox outlines that boosters cannot meet with prospective student-athlete to try to entice them to attend a school based on NIL deals; NIL deals cannot mandate students to live in a certain area or attend a specific school; and event sponsors are not allowed to pay an NIL collective in order for a specific team to compete in an event.