Louisiana AG Uses Juul Settlement Funds to Create NIL Opportunities

Liz Murrill's new anti-vaping campaign will send over $275,000 to athletes across Louisiana

Dec 17, 2024; Baton Rouge, Louisiana, USA; LSU Tigers mascot Mike the Tiger holds up a defense sign behind the Stetson Hatters team on a time out during the second half at Pete Maravich Assembly Center. Mandatory Credit: Stephen Lew-Imagn Images / Stephen Lew-Imagn Images

Louisiana Attorney General Liz Murrill has announced the creation of a novel NIL partnership between the Louisiana government and athletes at public universities in Louisiana. The NIL deals are the focal point of a broader youth-focused anti-vaping campaign within the state. 

The funds for the NIL activations come from a $10,000,000 settlement between Juul Labs, a vape company, and the State of Louisiana regarding the company’s marketing and sales practices toward minors, which violated the Louisiana Unfair Trade Practices Act. As required by the settlement terms, Louisiana must use the settlement funds to help mitigate the impacts of underage vaping through educational resources and programs, research on the harms of vaping, and better age-verification policies at the point of sale. 

Attorney General Murrill has decided to use these funds to accomplish two objectives: remain competitive on the field and raise awareness of e-cigarette abuse. Unsurprisingly, the state’s flagship University, Louisiana State University, will receive the lion’s share of the payment, with $450,000 going to the Tiger athletics department. The funds will be dispersed over the next three years, and, according to the contract, a minimum of $75,000 per year will be mandated to be spent on NIL deals with Tiger athletes for their participation in the NIL campaign. 

As part of the $450,000 total payment, LSU has agreed to provide signage and commercial space for the campaign during athletics events – notably, the contract did not include signage and broadcast time at football games. 

The state has already pledged an additional $56,000 to athletes at the University of Louisiana Monroe, Grambling State University, Northwestern State, Southeastern Louisiana University, and McNeese State. These institutions' athletes will receive between $1,000 and $3,000 for participating in the campaign. Over the next three years, more deals at schools outside of LSU could be made. 

NIL has been a powerful tool for influencer marketing. Student-athletes on campus are influential ambassadors, and their voices can shape discourse. Organizations interested in advancing political advocacy, opioid awareness, and vaccination reminders have all tapped into the NIL space to spread their messages to young audiences. 

Utilizing government funds for NIL resources adds a unique wrinkle to advocacy efforts often funded by private actors. With many states cashing in on settlements with Juul Labs, this method could become the new normal for advancing government-funded advocacy efforts. If public sentiment finds no conflict of interest with these payments, expect them to proliferate further nationwide.