On March 26th, 2021, Arizona passed a Name, Image, Likeness (NIL) law for their colleges and institutions. Arizona saw the legislation go live, effective July 23, 2021. Governor Doug Ducey signed Senate Bill 1296 allowing intercollegiate student athletes the ability to earn compensation for the use of their NIL.
Bill
Status
Signed Into Law
Effective
Date
07/23/2021
NCAA
Institutions
04
Estimated
NCAA Athletes
1,200
High School
NIL Legislation
Yes
Last Updated 08/22/22
Senate Bill 1298
Amending Title 15, Chapter 14, Arizona revised statutes, by adding Article 9.1; relating to postsecondary institutions.
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 15, Chapter 14, Arizona Revised Statutes, is amended by adding Article 9.1, to read:
Article 9.1 Collegiate Athletics
15-1892. Student athlete compensation; definitions
A. Any postsecondary education institution that competes in an intercollegiate sport shall allow a student athlete to earn compensation from the use of the student athlete’s own name, image or likeness to the extent allowed by the rules established by the relevant national association for promoting or regulating collegiate athletics.
B. A student athlete may not be denied a scholarship, have a scholarship revoked, be deemed ineligible for a scholarship or be deemed ineligible for participating in intercollegiate athletics based on earning compensation for the use of that student athlete’s name, image or likeness in a manner and to the extent allowed by the rules established by the relevant national association for promoting or regulating collegiate athletics.
C. An athlete agent who advises or represents a student athlete in connection with earning compensation from the use of that student athlete’s own name, image or likeness shall comply with Chapter 13, Article 10 of this title.
D. This section does not authorize student athletes to enter into a contract providing compensation for the use of the student athlete’s name, image or likeness if doing so either:
E. For the purposes of this section, “athlete agent”, “intercollegiate sport”, “person” and “student athlete” have the same meanings prescribed in section 15-1762.
Now that Student Athletes will have the ability to profit off of their name, image and likeness, they have to remain conscious about certain thresholds that could have certain tax consequences. Specific to the State of Arizona:
Arizona NIL Law states that athletes cannot enter into contracts that conflict with their team contracts. Athletes cannot enter into contracts that conflict with the intellectual property rights of anyone else, including their school. Agents hired by athletes must meet certain licensing requirements. The law does not explicitly require athletes to disclose NIL contracts to their school.
Arizona NIL started on July 1, 2021, per the NCAA Interim Policies and with the passage of Senate Bill 1296, Arizona State NIL laws also took effect on July 23, 2021.
Arizona 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 more!
Both athletes and administrators in the State of Arizona should start by making sure they have a proper understanding of the rules and regulations set-forth by Senate Bill 1296. A working-knowledge of the ‘Dos and Don’ts’ for Arizona 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.
All institutions with NCAA athletic programs are affected by NIL. In the state of Arizona, the following schools will be affected:
D1
NAIA
NJCAA
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