Massachusetts NIL Law for NCAA

On January 22, 2021, Massachusetts introduced a Name, Image, Likeness (NIL) law for their colleges and institutions. Although the bill has not successfully made its way through the House & the Senate, nor has it received Governor approval, and currently has no declared tentative effective date. If passed, Senate Bill 2454 will allow intercollegiate student-athletes the ability to earn compensation for the use of their NIL.

BILL STATUS: Bill Introduced
EFFECTIVE DATE: N/A
NCAA INSTITUTIONS: 54
ESTIMATED NCAA ATHLETES: 16,200

Last Updated 12/02/21

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MASSACHUSETTS NIL LAW

This bill was introduced to Massachusetts’s Senate in early-December 2019, and is still in the process of being turned into a law. The following components have been proposed by the Bill:

Section 1.

A public or private institution of higher education, hereinafter referred to as an “institution”, shall not uphold any rule, requirement, standard or other limitation that prevents a student of that institution participating in intercollegiate athletics from earning compensation as a result of the use of the student’s name, image or likeness. Earning compensation from the use of a student’s name, image or likeness shall not affect the student’s scholarship eligibility. For the purposes of this section, a public or private institution of higher education shall include a community college.
An athletic association, conference or other group or organization with authority over intercollegiate athletics, including, but not limited to, the National Collegiate Athletic Association, shall not prevent a student of an institution participating in intercollegiate athletics from earning compensation as a result of the use of the student’s name, image or likeness.
An athletic association, conference or other group or organization with authority over intercollegiate athletics, including, but not limited to, the National Collegiate Athletic Association, shall not prevent an institution from participating in intercollegiate athletics.
An institution, athletic association, conference or other group or organization with authority over intercollegiate athletics shall not provide a prospective student-athlete with compensation in relation to the athlete’s name, image or likeness.
An institution, athletic association, conference or other group or organization with authority over intercollegiate athletics shall not prevent a student-athlete participating in intercollegiate athletics from obtaining professional representation in relation to contracts or legal matters, including, but not limited to, representation provided by athlete agents or legal representation provided by attorneys.
Professional representation obtained by student-athletes shall be from persons complying with or registered in the commonwealth pursuant to section 32 of chapter 9.
Athlete agents representing student-athletes shall comply with the federal Sports Agent Responsibility and Trust Act, established in chapter 104 of title 15 of the United States Code, in their relationships with student-athletes.
A scholarship from the institution at which a student is enrolled that provides the student with the cost of attendance at that institution is not compensation for the purposes of this section. A scholarship shall not be revoked as a result of earning compensation or obtaining athlete agent or legal representation pursuant to this section.
A student-athlete shall not enter into a contract or agreement providing compensation to the athlete for use of the athlete’s name, image or likeness if a provision of the contract or agreement is in conflict with a provision of the athlete’s team contract. An institution asserting such a conflict shall disclose to the athlete or the athlete’s legal representation the relevant contractual provisions that are in conflict. A student-athlete who enters into a contract or agreement providing compensation to the athlete for use of the athlete’s name, image or likeness shall disclose the contract or agreement to an official of the institution, to be designated by the institution.
A team contract of an institution’s athletic program shall not prevent a student-athlete from using the athlete’s name, image or likeness for a commercial purpose when the athlete is not engaged in official team activities. This provision shall apply only to contracts entered into, modified, or renewed on or after the enactment of this section.
Each institution shall establish a catastrophic sports injury fund to provide a student-athlete who suffers a career ending or long-term catastrophic sports injury during an intercollegiate athletic competition or practice with compensation upon his or her graduation. The amount of such compensation and qualifying injuries shall be determined by the Board of Higher Education. A qualifying injury shall be verified by an independent health care provider not affiliated with the institution at which the injured student-athlete participated in intercollegiate athletics

Section 2.

A person shall not act as an athlete agent in commonwealth without holding a certificate of registration issued pursuant to this section.
Before being issued a certificate of registration, a person may act as an athlete agent in this state for all purposes except signing a contract or agreement, if:
1. a student-athlete or another person acting on behalf of the student-athlete initiates communication with such individual; and
2. within 7 days after an initial act as an athlete agent, such individual submits an application for registration as an athlete agent under this section.
A contract or agreement resulting from conduct in violation of this section shall be void. In the event a student-athlete voids such contract or agreement, the student-athlete shall not be required to pay any consideration under such contract or agreement or to return any consideration received from the athlete agent to induce the student-athlete to enter into the contract or agreement, and the athlete agent shall be required to return any consideration received pursuant to such voided contract or agreement. Any contract or agreement under this section shall be void and unenforceable unless it is in writing.
An applicant for registration shall submit an application therefore to the state secretary in such form as shall be prescribed by the state secretary. An application filed pursuant to this section shall be a public record. The application shall be in the name of an individual and signed or otherwise authenticated by the applicant under penalty of perjury, and state or contain the following:
1. the name of the applicant and the address of the applicant’s principal place of Business;
2. the name of the applicant’s business or employer, if applicable;
3. any business or occupation engaged in by the applicant for the 5 years next preceding the date of submission of the application;
4. a description of the applicant’s:
  1. formal training as an athlete agent;
  2. practical experience as an athlete agent; and
  3. educational background relating to the applicant’s activities as an athlete Agent;
5. the names and addresses of 3 individuals not related to the applicant who are willing to serve as references;
6. the name, sport and last known team for each individual for whom the applicant acted as an athlete agent during the 5 years next preceding the date of submission of the application;
7. the names and addresses of all persons who are:
  1. with respect to the athlete agent’s business if it is not a corporation, the partners, members, officers, managers, associates or profit-sharers having an interest of 5 percent or greater of the business; and
  2. with respect to a corporation employing the athlete agent, the officers, directors and any shareholder of the corporation having an interest of 5 per cent or greater;
8. whether the applicant or any person named pursuant to clause(vii) has been convicted of a crime that, if committed in this state, would be a crime involving moral turpitude or a felony, and identify the crime;
9. whether there has been any administrative or judicial determination that the applicant or any person named pursuant to clause (vii) has made a false, misleading, deceptive or fraudulent representation;
10. any instance in which the conduct of the applicant or any person named pursuant to clause (vii) resulted in the imposition of a sanction, suspension or declaration of ineligibility to participate in an interscholastic or intercollegiate athletic event on a student-athlete or educational institution;
11. any sanction, suspension or disciplinary action taken against the applicant or any person named pursuant to clause (vii) of this subsection by a governmental or quasi-governmental licensing entity or adjudicatory process arising out of occupational or professional conduct; and
12. whether there has been any denial of an application for, suspension or revocation of, or refusal to renew the registration or licensure of the applicant or any person named pursuant to clause (vii) as an athlete agent in any state.
An individual who has submitted an application for, and holds a certificate of, registration or licensure as an athlete agent in another state, may submit a copy of the application and certificate in lieu of submitting an application in the form prescribed by the state secretary. The state secretary shall accept the application and the certificate from the other state as an application for registration in this state if the application to the other state
1. was submitted in the other state within 6 months next preceding the submission of the application in this state and the applicant certifies that the information contained in the application is current;
2. contains information substantially similar to or more comprehensive than that required in an application submitted in this state; and
3. was signed by the applicant under penalty of perjury.
Except as otherwise provided in this section, the state secretary shall issue a certificate of registration to an individual who complies the requirements of this section.
The state secretary may refuse to issue a certificate of registration if the state secretary determines that the applicant has engaged in conduct that has an adverse effect on the applicant’s fitness to act as an athlete agent. In making the determination, the state secretary may consider whether the applicant has:
1. been convicted of a crime that, if committed in this state, would be a crime involving moral turpitude or a felony;
2. made a materially false, misleading, deceptive or fraudulent representation in the application or as an athlete agent;
3. engaged in conduct that would disqualify the applicant from serving in a fiduciary capacity;
4. engaged in conduct prohibited by this section;
5. had a registration or licensure as an athlete agent suspended, revoked or denied, or been refused renewal of registration or licensure as an athlete agent in any state;
6. engaged in conduct the consequence of which was that a sanction, suspension or declaration of ineligibility to participate in an interscholastic or intercollegiate athletic event was imposed on a student-athlete or educational institution; or
7. engaged in conduct that significantly adversely reflects on the applicant’s credibility, honesty or integrity.
An athlete agent may apply to renew a registration by submitting an application for renewal in such form as shall be prescribed by the state secretary. An application filed pursuant to this section shall be a public record. The application for renewal shall be signed by the applicant under penalty of perjury and shall contain current information on all matters required in an original registration.
An individual who has submitted an application for renewal of registration or licensure in another state, in lieu of submitting an application for renewal in the form prescribed pursuant to this section, may file a copy of the application for renewal and a valid certificate of registration or licensure from the other state. The state secretary shall accept the application for renewal from the other state as an application for renewal in this state if the application to the other state:
1. was submitted in the other state within 6 months next preceding the filing in this state and the applicant certifies the information contained in the application for renewal is Current;
2. contains information substantially similar to or more comprehensive than that required in an application for renewal submitted in this state; and
3. was signed by the applicant under penalty of perjury.
A certificate of registration or a renewal of a registration shall be valid for 2 years.
The state secretary may suspend, revoke or refuse to renew a registration for conduct that would have justified denial of registration under this section.
The state secretary may deny, suspend, revoke or refuse to renew a certificate of registration or licensure only after proper notice and an opportunity for a hearing as provided pursuant to the provisions of chapter 30A.
An application for registration or renewal of registration shall be accompanied by a fee to be determined by the commissioner of administration pursuant to section 3B of chapter 7.
A contract or agreement between an athlete agent and a student athlete shall be in a record, signed or otherwise authenticated by the parties. Such contract or agreement shall state or contain:
1. the amount and method of calculating the consideration to be paid by the student-athlete for services to be provided by the athlete agent under the contract or agreement and any other consideration the athlete agent has received or will receive from any other source for entering into the contract or agreement or for providing the Services;
2. the name of any person not listed in the application for registration or renewal of registration who will be compensated because the student-athlete signed the contract or Agreement;
3. a description of any expenses that the student athlete agrees to reimburse;
4. a description of the services to be provided to the student athlete;
5. the duration of the contract or agreement; and
6. the date of execution.
A student athlete may cancel a contract or agreement with an athlete agent by giving notice of the cancellation to the athlete agent in a record within 10 days after the contract or agreement is signed.
A student athlete may not waive the right to cancel a contract or agreement with an athlete agent.
If a student athlete cancels a contract or agreement with an athlete agent, the student athlete shall not be required to pay any consideration under such contract or agreement to return any consideration received from the athlete agent to induce the student-athlete to enter into the contract or agreement.
An athlete agent shall retain the following records for a period of 5 years:
1. the name and address of each individual represented by the athlete agent;
2. any contract or agreement entered into by the athlete agent; and
3. any direct costs incurred by the athlete agent in the recruitment or solicitation of a student-athlete to enter into a contract or agreement.
An athlete agent, with the intent to induce a student-athlete to enter into a contract or agreement, shall not:
1. give any materially false or misleading information or make a materially false promise or representation;
2. furnish anything of value to a student-athlete before the student-athlete enters into the contract or agreement; or
3. furnish anything of value to any other individual or another registered athlete agent before the student-athlete enters into the contract or agreement;
An athlete agent shall not willfully:
1. initiate contact with a student-athlete unless registered pursuant to this section;
2. refuse or fail to retain or permit inspection of the records required to be retained by this section;
3. fail to register when required by this section;
4. provide materially false or misleading information in an application for registration or renewal of registration; or
5. predate or postdate a contract or agreement with a student athlete.
The state secretary may assess a civil penalty against an athlete agent not to exceed $25,000 for a violation of the registration provisions of this section.
Athlete agents representing student-athletes shall comply with the federal Sports Agent Responsibility and Trust Act, established in chapter 104 of title 15 of the United States Code, in their relationships with student-athletes.

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MASSACHUSETTS NIL TAX IMPLICATIONS

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 Massachusetts:

Single-Rate Individual Income Tax Structure
Top Marginal Individual Income Tax Rate = 5.00%

MASSACHUSETTS NIL FAQS

What is the Massachusetts NIL Law?

The Massachusetts NIL Law is a bill authorizing an intercollegiate athlete at a postsecondary educational institution to earn compensation for the use of her or his Name, Image, or Likeness (NIL), and prohibits a postsecondary institution from preventing an athlete from earning NIL compensation.

When does Massachusetts NIL Compliance Start?

Massachusetts NIL started on July 1, 2021, per the NCAA Interim Policies. If and when Senate Bill 2454 is passed into law, Massachusetts State NIL laws would take effect on immediately.

How does Massachusetts NIL affect NCAA Student-Athletes?

Massachusetts 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!

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

Both athletes and administrators in the State of Massachusetts should start by making sure they have a proper understanding of the rules and regulations set-forth by Senate Bill 2454. A working-knowledge of the ‘Dos and Don’ts’ for Massachusetts 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.

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NCAA MASSACHUSETTS SCHOOLS

What schools are affected by Massachusetts NIL?

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

NAIA

Fisher College

NJCAA

Bristol Community College
Bunker Hill Community College
Holyoke Community College
Massachusetts Bay Community College
Massasoit Community College
Northern Essex Community College
Quinsigamond Community College
Roxbury Community College
Springfield Technical Community College

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Massachusetts NIL Law for NCAA

MASSACHUSETTS NIL LAW

Spry’s GPS: Navigating NIL

MASSACHUSETTS NIL TAX IMPLICATIONS

MASSACHUSETTS NIL FAQS

What is the Massachusetts NIL Law?

When does Massachusetts NIL Compliance Start?

How does Massachusetts NIL affect NCAA Student-Athletes?

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

Let us show you how Spry can:

NCAA MASSACHUSETTS SCHOOLS

What schools are affected by Massachusetts NIL?

NAIA

NJCAA

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Massachusetts NIL Law for NCAA

MASSACHUSETTS NIL LAW

Spry’s GPS: Navigating NIL

MASSACHUSETTS NIL TAX IMPLICATIONS

MASSACHUSETTS NIL FAQS

What is the Massachusetts NIL Law?

When does Massachusetts NIL Compliance Start?

How does Massachusetts NIL affect NCAA Student-Athletes?

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

Let us show you how Spry can:

NCAA MASSACHUSETTS SCHOOLS

What schools are affected by Massachusetts NIL?

NAIA

NJCAA

Let Us Show You Spry In Action

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