Alabama NIL Law for NCAA

On February 3, 2022, Alabama passed a Name, Image, Likeness (NIL) law that officially repealed their previous bill passed in April 2021. Governor Kay Ivey signed House Bill 76 which repealed the state’s previous law, House Bill 404, on collegiate student-athletes profiting off their NIL.

See below for a discussion of the new and previous legislation.

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Bill
Status

Signed into Law

Effective
Date

07/01/2021 (Repeal in place as of 02/03/2022)

NCAA
Institutions

19

Estimated
NCAA Athletes

5700

High School
NIL Legislation

No

Last Updated 08/22/22

Alabama NIL Law

New Alabama NIL Law:

This bill was introduced to Alabama’s House of Representatives in early January 2022, and took less than one month to pass through the Senate and the House, and ultimately, be signed into law. The following components have been spelled out from the Bill:

This bill would repeal Act 2021-227 of the 2021 Regular Session, relating to student athletes and compensation for use of a student athlete’s name, image, or likeness.

Relating to student athletes; to repeal Act 2021-227 of the 2021 Regular Session, now appearing as Article 3 of Chapter 26B of Title 8, commencing with Section 8-26B-50, and Section 8-26B-32, Code of Alabama 1975, relating to student athletes and compensation for use of a student athlete’s name, image, or likeness.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:

Section 1.

Act 2021-227 of the 2021 Regular Session, now appearing as Article 3 of Chapter 26B of Title 8, commencing with Section 8-26B-50, and Section 8-26B-32, Code of Alabama 1975, relating to student athletes and compensation of a student athlete for use of his or her name, image, or likeness, is repealed.

Section 2.

This act shall become effective immediately following its passage and approval by the Governor, or its otherwise becoming law.

Initial Alabama NIL Law:

This bill was introduced to Alabama’s House of Representatives in early March 2021, and took a little over a month and a half to pass through the Senate and the House, and ultimately, be signed into law. The following components have been spelled out from the Bill:

Section 1.

Section 2.

A postsecondary educational institution may not prevent or unreasonably restrict a student athlete from obtaining professional representation for the purpose of securing compensation for the use of the student athlete’s name, image, or likeness.
An individual representing a student athlete for purposes of exploring or securing compensation for the student athlete’s name, image, or likeness shall be registered as an athlete agent with the state pursuant to Section 8-26B-4, Code 2 of Alabama 1975, or shall be a licensed attorney and a member 3 in good standing of the Alabama State Bar.
A student athlete participating in intercollegiate sports at a postsecondary educational institution shall provide the institution with written notice at least seven days prior to entering into a representation agreement with any individual for purposes of exploring or securing compensation for use of the student athlete’s name, image, or likeness.

Section 3.

A scholarship awarded to a student athlete by a postsecondary educational institution may not be revoked or reduced as a result of the receipt of compensation by a student athlete for use of their name, image, or likeness, or as a result of the student athlete obtaining professional representation pursuant to this act and any rule adopted by the Alabama Collegiate Athletics Commission.

Section 4.

Each postsecondary educational institution shall conduct financial literacy and life skills programming for student athletes. At a minimum, the programming must include information concerning financial aid and debt management, as well as recommended model budgets for student athletes based on that academic year’s estimated cost of attendance and the various scholarship statuses of student athletes at the institution. The programming shall also include information on time management skills necessary for success as a student athlete and available academic resources.
The programming may not include any marketing, advertising, referral, or solicitation by providers of financial products or services.
This section does not place any obligation on a postsecondary educational institution to provide tax guidance or financial safeguards to student athletes outside of the programming required under this section.

Section 5.

A student athlete may not receive or enter into a contract for compensation for use of his or her name, image, or likeness in a way that also uses any registered or licensed marks, logos, verbiage, or designs of a postsecondary education institution, unless the institution has provided the student athlete with written permission to do so prior to the execution of the contract. If permission is granted, the postsecondary education institution, by agreement of all parties, may be compensated for the use in a manner consistent with market rates or prior practice.

Section 6.

A student athlete may not receive compensation for use of their name, image, or likeness as an inducement to attend or enroll in or continue attending a specific postsecondary educational institution.

Section 7.

This act does not create a cause of action for any actions taken by a postsecondary education institution prior to the effective date of this act, including, but not limited to, any action under a claim or theory relating to restriction on trade or tortious interference of fair competition.

Section 8.

Nothing in this act or rule of the commission shall affect the employment status of a student athlete with a postsecondary education institution. A student athlete shall not be considered an employee of a postsecondary education institution based on participation in an intercollegiate sport.

Section 9.

It is the intent of the Legislature that constitutionally created boards of trustees of postsecondary educational institutions comply with the requirement of this act.

Tax Implications

FAQ’s

Alabama NIL FAQs

What is the Alabama NIL Law?

The Alabama NIL Law states that student-athletes may earn compensation for use of name, image, or likeness, conditions established, certain postsecondary educational institutions may not restrict, Alabama Collegiate Athletic Commission established to enforce. (Link)

When does Alabama NIL Compliance Start?

Alabama NIL started on July 1, 2021, per the NCAA Interim Policies and with the passage of House Bill 404, Alabama State NIL laws also took effect on July 1, 2021.

How does Alabama NIL affect NCAA Student-Athletes?

Alabama NCAA Student-Athletes will be able to earn compensation for the use of her or his name, image, or likeness (NIL) through a multitude of different opportunities. Student-Athletes can now make money for things such as endorsements, sponsorships, appearances, autographs, memorabilia, podcasts, camps, clinics, private lessons, crowdfunding, and many other opportunities!

What are Alabama Name, Image, and Likeness Best Practices?

Both athletes and administrators in the State of Alabama should start by making sure they have a proper understanding of the rules and regulations set-forth by House Bill 404. A working-knowledge of the ‘Dos and Don’ts’ for Alabama NIL will allow all parties to safely and successfully navigate the new landscape. The next most important aspect would be the compliance component of NIL. Not only do students need to make sure they are entering agreements that are compliant with the passed state regulations, but they need to make sure they are transparent with their school to avoid any institutional conflicts.

Colleges / Institutions

NCAA Alabama Schools

What schools are affected by Alabama NIL?

All institutions with NCAA athletic programs are affected by NIL. In the state of Alabama, the following schools will be affected:

D1

University of Alabama
Alabama Agricultural and Mechanical University
Alabama State University
Auburn University
Jacksonville State University
University of North Alabama
Samford University
University of South Alabama
Troy University
University of Alabama at Birmingham

D2

University of Alabama in Huntsville
Auburn University at Montgomery
Miles College
University of Montevallo
Spring Hill College
Tuskegee University
University of West Alabama

NAIA

University of Mobile
Stillman College
Talladega College

D3

Birmingham–Southern College
Huntingdon College

NJCAA

Bishop State Community College
Calhoun Community College
Central Alabama Community College
Chattahoochee Valley Community College
Enterprise State Community College
Coastal Alabama Community College Monroeville
Coastal Alabama Community College
Coastal Alabama Community College Brewton
Gadsden State Community College
Lawson State Community College
Lurleen B. Wallace Community College
Marion Military Institute
Shelton State Community College
Southern Union State Community College
Wallace Community College
Wallace Community College Selma
Wallace State Community College

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