Oregon NIL Law for NCAA

On June 29th, 2021, Oregon passed a Name, Image, Likeness (NIL) law for their colleges and institutions. Oregon saw its NIL legislation go live the same day it was signed, effective June 29, 2021. Governor Kate Brown signed Senate Bill 5 allowing intercollegiate student-athletes the ability to earn compensation for the use of their NIL.

BILL STATUS: Signed into Law
EFFECTIVE DATE: 07/01/2021
NCAA INSTITUTIONS: 9
ESTIMATED NCAA ATHLETES: 2,700

Last Updated 10/11/21

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OREGON NIL LAW

This bill was introduced to Oregon’s Assembly in early March 2021 and only took about two months to pass through the Assembly and the Senate, and ultimately, be signed into law. The following components have been spelled out from the Bill:

Section 1

Except as provided in this section, a post-secondary institution of education or an athletic association, conference or organization with authority over intercollegiate sports may not:
- Prohibit, prevent or restrict a student athlete from exercising the student’s rights.
- Penalize or retaliate against a student athlete for exercising the student’s rights.
- Prohibit a student athlete from participating in an intercollegiate sport for exercising the student’s rights.
- Impose an eligibility requirement on a scholarship or grant that requires a student athlete to refrain from exercising the student’s rights.
- Prohibit a student athlete from receiving food, drink, lodging or medical expenses or insurance coverage from a third party as compensation for use of the student’s name, image or likeness.
- A student athlete may not enter into a contract that provides compensation to the student athlete for use of the student athlete’s name, image or likeness if terms of the contract conflict with the student athlete’s team rules or with terms of a contract entered into between the student athlete’s post-secondary institution of education and a third party, except neither the team rules nor a contract entered into between the post-secondary institution of education and a third party may prevent a student athlete from earning compensation for use of the student athlete’s name, image or likeness when not engaged in official team activities, including participating in or being part of an advertisement that was created while not engaged in official team activities but that may otherwise be broadcasted, displayed or disseminated at any time.
- A student athlete who enters into a contract that provides compensation to the student athlete for use of the student athlete’s name, image or likeness shall disclose the contract to an official of the post-secondary institution of education designated by the institution if the student athlete is a team member or, if the student athlete is not a team member, at the time the student athlete seeks to become a team member.
- If the post-secondary institution of education asserts that the terms of the contract conflict with the team rules or with terms of a contract entered into between the student athlete’s post-secondary institution of education and a third party, the institution shall disclose the specific rules or terms asserted to be in conflict to the student athlete or to the student athlete’s professional representative or athlete agent if the student athlete is represented.
A post-secondary institution of education or an athletic association, conference or organization with authority over intercollegiate sports may not provide to a prospective or current student athlete compensation for use of the student athlete’s name, image or likeness.
A student athlete may not contract with or retain a person as the student athlete’s professional representative or athlete agent, if the person represented a post-secondary institution of education at any time in the preceding four years.
Nothing in this section prohibits a post-secondary institution of education from establishing or enforcing a conduct code that is applicable to all students enrolled at the institution

Section 2

An athlete agent may not intentionally:
- Initiate contact with a student athlete or, if the athlete is a minor, a parent or guardian of the athlete unless registered under ORS 702.005 to 702.065, 702.991 and 702.994;
- Refuse or fail to retain or permit inspection of the records required to be retained by ORS 702.059;
- Fail to register when required by ORS 702.012;
- Provide materially false or misleading information in an application for registration or renewal of registration;
- Predate or postdate a written agency contract; [or]
- Fail to notify a student athlete or, if the athlete is a minor, a parent or guardian of the athlete before the student athlete, parent or guardian enters into an agency contract for a particular sport that entering into the agency contract may make the student athlete ineligible to participate as a student athlete in that sport[.]; or
- Represent a student athlete who is enrolled in a post-secondary institution of education, if the athlete agent represented a post-secondary institution of education at any time in the preceding four years.

Section 3

A written agency contract must be in a record, signed or otherwise authenticated by the parties.
A written agency contract must state or contain:
- 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 and any other consideration the athlete agent has received or will receive from any other source for entering into the contract or for providing the services;
- The name of any person not listed in the application for registration or renewal of registration who will be compensated because the student athlete or, if the athlete is a minor, the parent or guardian of the athlete signed the written agency contract;
- A description of any expenses that the student athlete agrees to reimburse;
- A description of the services to be provided to the student athlete;
- The duration of the contract;
- The date of execution; and
- A statement that the athlete agent is registered as an athlete agent in this state and a list of any other states in which the agent is registered as an athlete agent.
Except where section 1 of this 2021 Act applies, a written agency contract must contain, in close proximity to the signature of the student athlete or, if the athlete is a minor, the signature of the parent or guardian of the athlete, a conspicuous notice in boldfaced type in capital letters stating:

WARNING TO THE STUDENT ATHLETE:

IF YOU OR YOUR PARENT OR GUARDIAN SIGNS THIS CONTRACT:

(1) YOU MAY LOSE YOUR ELIGIBILITY TO COMPETE AS A STUDENT ATHLETE IN YOUR SPORT.

(2) IF YOU HAVE AN ATHLETIC DIRECTOR, BOTH YOU AND YOUR ATHLETE AGENT MUST NOTIFY YOUR ATHLETIC DIRECTOR WITHIN 72 HOURS AFTER ENTERING INTO THIS CONTRACT, OR BEFORE YOU PARTICIPATE IN ANY INTERSCHOLASTIC OR INTERCOLLEGIATE SPORTS EVENT, WHICHEVER OCCURS FIRST, THAT YOU HAVE ENTERED INTO THIS CONTRACT AND PROVIDE THE NAME AND CONTACT INFORMATION OF THE ATHLETE AGENT.

(3) YOU MAY CANCEL THIS CONTRACT WITHIN 14 DAYS AFTER SIGNING IT. CANCELLATION OF THIS CONTRACT MAY NOT REINSTATE YOUR ELIGIBILITY.

A written agency contract that does not conform to this section is voidable by the student athlete or, if the athlete is a minor, the parent or guardian of the athlete. If the contract is voided, any consideration received from the athlete agent under the contract to induce entering into the contract is not required to be returned.
The athlete agent shall give a record of the written agency contract to the student athlete or, if the athlete is a minor, to the parent or guardian of the athlete at the time of execution.
Except where section 1 of this 2021 Act applies, an agency contract must be accompanied by a separate record signed by the student athlete or, if the athlete is a minor, the parent or guardian of the athlete acknowledging that signing the contract may result in the loss of the athlete’s eligibility to participate in the athlete’s sport.
At the time an agency contract is executed, the athlete agent shall give the student athlete or, if the athlete is a minor, the parent or guardian of the athlete a copy in a record of the contract and the separate acknowledgement as required by subsection (6) of this section.
If a student athlete is a minor, an agency contract must be signed by the parent or guardian of the athlete and the notice required by subsection (3) of this section must be revised accordingly.

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OREGON 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 Oregon:

Graduated-Rate Individual Income Tax Structure
Top Marginal Individual Income Tax Rate = 9.90%

OREGON NIL FAQS

What is the Oregon NIL Law?
The Oregon NIL Law permits students participating in intercollegiate sports to earn compensation for use of name, image or likeness and to retain professional representation or athlete agent. Permits students participating in intercollegiate sports to earn compensation for use of name, image or likeness and to retain professional representation or athlete agent. Prohibits student from entering contract for use of name, image or likeness that conflicts with team rules or contract between post-secondary institution of education and third party, except that team rules and contracts between post-secondary institution of education and a third party may not prevent a student athlete from earning compensation for use of their name, image or likeness when not engaged in official team activities or from use of social media when engaged in official team activities]. Prohibits student-athletes from retaining professional representative or athlete agent who represented post-secondary institutions of education at any time in preceding four years. Requires merchandising agreement that covers intercollegiate sports teams that includes royalty payments to also include royalty payments to current members of team and royalty payments plus premium to current or former member of a team whose name, image or likeness is used.

When does Oregon NIL Compliance Start?
Oregon NIL started on July 1, 2021, per the NCAA Interim Policies. However, with the passage of Senate Bill 5, Oregon State NIL laws took effect on June 29, 2021

How does Oregon NIL affect NCAA Student-Athletes?
Oregon 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 Oregon Name, Image, and Likeness Best Practices?
Both athletes and administrators in the State of Oregon should start by making sure they have a proper understanding of the rules and regulations set forth by Senate Bill 5. A working knowledge of the ‘Dos and Don’ts’ for Oregon 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 OREGON SCHOOLS

What schools are affected by Oregon NIL?

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

D1

University of Oregon
Oregon State University
University of Portland
Portland State University

D2

Western Oregon University

D3

George Fox University
Lewis & Clark College
Linfield University
Pacific University
Willamette University

NAIA

Bushnell University
Corban University
Eastern Oregon University
Multnomah University
Oregon Institute of Technology
Southern Oregon University
Warner Pacific College

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Oregon NIL Law for NCAA

OREGON NIL LAW

Spry’s GPS: Navigating NIL

OREGON NIL TAX IMPLICATIONS

OREGON NIL FAQS

Let us show you how Spry can:

NCAA OREGON SCHOOLS

What schools are affected by Oregon NIL?

D1

D2

D3

NAIA

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Oregon NIL Law for NCAA

OREGON NIL LAW

Spry’s GPS: Navigating NIL

OREGON NIL TAX IMPLICATIONS

OREGON NIL FAQS

Let us show you how Spry can:

NCAA OREGON SCHOOLS

What schools are affected by Oregon NIL?

D1

D2

D3

NAIA

See Spry In Action

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