North Carolina Advances NIL Rule for Public School Athletes

North Carolina Board of Education proposes NIL rules for public school athletes, granting new financial opportunities by 2025.

New Hanover took to the practice field Wednesday July 31, 2024 as North Carolina high school football teams started their first week of practice. KEN BLEVINS/STARNEWS / KEN BLEVINS/STARNEWS / USA TODAY NETWORK

The North Carolina State Board of Education has taken a significant step forward by advancing a proposal to permit public school students in grades six through twelve to profit from their Name, Image, and Likeness (NIL). This initiative follows a lawsuit initiated by the mother of Faizon Brandon, a top high school football recruit.

A stark disparity exists: while private school athletes in North Carolina can capitalize on NIL opportunities, their public school counterparts have been left without such options. This inequity is particularly pronounced given that around 40 states have already enacted various NIL regulations for grade-school athletes. The proposed rules aim to rectify this imbalance, allowing public school athletes the opportunity for equitable compensation through public appearances, autograph signings, social media endorsements, and hosting sports camps.

Braly Keller, Director of NIL with Opendorse, anticipates a significant uptick in NIL deals following the proposed rule change. "I certainly think whenever there's a rule change, we see an immediate influx of deals. Someone wants to race to be the first athlete in the state to have done an NIL deal," said Keller. He points out that North Carolina ranks among the top 15 states nationally for NIL spending, which accounts for approximately 5% of the overall market. This influx of opportunities could provide financial benefits to the athletes and enhance their visibility and marketability early on.

However, the proposed rules have a structured framework to guide young athletes through this new landscape. Students and their parents must complete an NIL education course and submit forms for each NIL deal to school administrators. This regulatory oversight is intended to ensure that athletes remain focused on their sports while navigating the complexities of financial opportunities. Former NCAA Division I basketball player Jared Grady emphasizes the necessity of maintaining that focus: "High-school athletes, middle-school athletes, they're young. And making big-time decisions when it comes to money, it can definitely deter their ultimate goal to actually be something more, whether that's inside basketball, outside basketball, college (or) pro."

The proposed rules also incorporate specific limitations on endorsements, prohibiting athletes from promoting alcohol, tobacco, cannabis, controlled substances, vaping products, gambling, weapons, and adult services. These restrictions are designed to safeguard young athletes from potential pitfalls while allowing them to explore legitimate avenues for monetization.

As the proposed rules enter a public comment period from October until early December, anticipation builds for a final vote expected in January. If approved, these rules could take effect on July 1, 2025, marking a pivotal moment for high school athletes in North Carolina. The ability to monetize their talents could not only provide financial support but also empower young athletes to take control of their futures in a way that has previously been denied to them.