This bill was introduced to Colorado’s Senate in early January 2020, and took a little under two months to pass through the Senate and the House, and ultimately, be signed into law. Initially, the bill had an effective date of Jan. 1, 2023, but was moved up to reflect the NCAA Interim Policy and go live in the Summer of 2021. The following components have been spelled out from the Bill:
(c) Neither an institution nor an athletic association shall:
2.
(a) A student athlete shall not enter into a contract providing compensation to the student athlete if the contract conflicts with a team contract of the team for which the student athlete competes.
(b) A student athlete who enters into a contract providing compensation to the student athlete in exchange for the use of the student athlete’s name, image, or likeness shall disclose the contract to the athletic director of the student athlete’s institution within seventy-two hours after the student athlete enters into the contract or before the next scheduled athletic event in which the student athlete may participate, whichever occurs first.
(c) An institution asserting a conflict described in subsection (3)(a) of this section shall disclose to the student athlete or to the student athlete’s professional or legal representation the relevant contractual provisions that are in conflict.
(d) A team contract of an institution’s athletic program entered into, modified, or renewed on or after the effective date of this section may not prohibit a student athlete from using the student athlete’s name, image, or likeness for a commercial purpose when the student athlete is not engaged in official team activities.
(e) Any person providing legal representation to a student athlete must be a licensed attorney.
(f) For the purposes of this section, an institution shall not revoke a student athlete’s scholarship because the student athlete receives compensation or obtains professional or legal representation as described in this section.
(g) A policy of an institution or an athletic association that does not comport with this part is void and unenforceable.
(h) A student athlete who is aggrieved by an action taken by an institution or an athletic association in violation of this part may bring an action for injunctive relief.
3.
(a) Each institution that participates in intercollegiate athletics may sponsor on-campus athlete agent interviews at which an athlete agent may interview student athletes to discuss the athlete agent’s representation of the student athletes in the marketing of the student athletes’ athletic ability or reputation. The governing board of the institution or the institution may adopt rules with regard to the scheduling of interview periods, the duration of each interview period, and locations on campus where interviews may be conducted. Nothing in this section prohibits a student athlete and an athlete advisor, as defined in section 23-16-301 (1)(b), from meeting at a time and place other than an on-campus athlete agent interview that is sponsored by an institution pursuant to this section.
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 Colorado:
The Colorado NIL Law states that athletes cannot enter into NIL contracts that conflict with team contracts. Team contracts cannot prevent athletes from engaging in NIL activities outside official team activities. An athlete must disclose an NIL contract to the athletic director at their school within 72 hours after entering into it or before their next scheduled athletic event, whichever is sooner. Schools cannot provide compensation to current or prospective student athletes, pay prospective student athletes for their athletic ability or performance or potential athletic ability or performance, or prevent student athletes from hiring advisors, attorneys, or other professional representation related to NIL contracts.
Colorado NIL started on July 1, 2021, per the NCAA Interim Policies and with the passage of Senate Bill 20-123, Colorado State NIL laws also took effect on July 1, 2021.
Colorado 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 Colorado should start by making sure they have a proper understanding of the rules and regulations set forth by Senate Bill 20-123. A working knowledge of the ‘Dos and Don’ts’ for Colorado 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 Colorado, the following schools will be affected:
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