South Carolina NIL Law for NCAA

On May 6th, 2021, South Carolina passed a Name, Image, Likeness (NIL) law for their colleges and institutions. Governor Henry McMaster first signed Senate Bill 685 allowing intercollegiate student-athletes the ability to earn compensation for the use of their NIL set to go live, effective July 1, 2022. However, Attorney General Alan Wilson certified the bill on July 1, 2021, making it effective immediately.

BILL STATUS: Signed into Law
EFFECTIVE DATE: 07/01/2021
NCAA INSTITUTIONS: 26
ESTIMATED NCAA ATHLETES: 7,800
HIGH SCHOOL NIL LEGISLATION: No

Last Updated 08/22/22

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SOUTH CAROLINA NIL LAW

This bill was introduced to South Carolina’s Senate in late March 2021 and took less than two months to pass through the General Assembly, and ultimately, be signed into law. The following components have been spelled out from the Bill:

(1) An intercollegiate athlete at an institution of higher learning may earn compensation for the use of his name, image, or likeness as provided for in this chapter.
(2) Compensation earned by an intercollegiate athlete for the use of his name, image, or likeness must represent a genuine payment for the use of his name, image, or likeness, independent of, rather than as a payment for, his athletic participation or performance. Compensation may only be provided by a third party.
(3) Compensation may not be provided in exchange for an intercollegiate athlete’s athletic performance or attendance at a particular institution of higher learning and may only be provided by a third party unaffiliated with the intercollegiate athlete’s institution of higher learning.
(4) A name, image, or likeness contract in conflict with the provisions of this chapter is voidable.
An intercollegiate athlete may receive compensation only for the use of his name, image, or likeness for third-party endorsements, the intercollegiate athlete’s non-athletic work product, or activities related to a business that the intercollegiate athlete owns.
An institution of higher learning or its athletic conference cannot directly or indirectly create or facilitate compensation opportunities for the use of an intercollegiate athlete’s name, image, or likeness.
An institution of higher learning may not use or allow boosters to directly or indirectly create or facilitate compensation opportunities for the use of an intercollegiate athlete’s name, image, or likeness as a recruiting inducement or as a means of paying for athletics participation.
An intercollegiate athlete at an institution of higher learning may not use the institution of higher learning’s facilities, uniforms provided by the institution of higher learning, or the institution of higher learning’s intellectual property, including, but not limited to, the unauthorized use of a registered trademark or product protected by copyright, in connection with the use of the intercollegiate athlete’s name, image, or likeness activities.
Activities related to an intercollegiate athlete’s use of his name, image, or likeness for compensation are prohibited from taking place during the intercollegiate athlete’s participation in academic, athletic, or team-mandated activities as defined by the institution of higher learning.
Activities related to an intercollegiate athlete’s use of his name, image, or likeness for compensation cannot be contingent on a prospective intercollegiate athlete’s enrollment at a particular institution of higher learning or its athletic conference and cannot otherwise be used as an inducement by an institution of higher learning or a booster.
An institution of higher learning; an entity with a purpose that includes supporting or benefiting an institution of higher learning or its athletic programs; or an officer, director, or employee of an institution of higher learning or such an entity may not directly or indirectly compensate a current or prospective intercollegiate athlete for the use of the intercollegiate athlete’s name, image, or likeness.
A grant in aid, including the cost of attendance, awarded to an intercollegiate athlete by an institution of higher learning is not compensation for the purposes of this chapter and may not be revoked or reduced as a result of an intercollegiate athlete earning compensation or obtaining professional representation under this chapter. Name, image, or likeness compensation shall not be used to limit athletic grants in aid but may be used in the calculation for need-based financial aid available to the general student population.
Earning compensation in compliance with the provisions contained in Section 59-158-40 does not affect an intercollegiate athlete’s grant in aid or athletic eligibility.
Notwithstanding athletic conference or collegiate athletic association rules, bylaws, regulations, and policies to the contrary, an institution of higher learning is prohibited from adopting or maintaining a contract, rule, regulation, standard, or other requirement that prevents or unduly restricts an intercollegiate athlete from:
- earning compensation for the use of his name, image, or likeness; or
- obtaining an athlete agent for the purpose of securing compensation for the use of his name, image, or likeness.
An institution of higher learning may prohibit an intercollegiate athlete from using his name, image, or likeness for compensation if the proposed use of his name, image, or likeness conflicts with:
- existing institutional sponsorship agreements or other contracts; or
- institutional values as defined by the institution of higher learning.
An intercollegiate athlete may not earn compensation for the use of his name, image, or likeness for the endorsement of tobacco, alcohol, illegal substances or activities, banned athletic substances, or gambling including, but not limited to, sports betting.
An institution of higher learning must disclose known prohibitions for the use of an intercollegiate athlete’s name, image, or likeness at the time that an intercollegiate athlete is admitted to the institution of higher learning or when the intercollegiate athlete signs a financial aid agreement or team contract.
An intercollegiate athlete participating in name, image, or likeness activities must abide by his institution of higher learning and its athletic department’s policies with respect to missed class time and good academic standing. Good academic standing includes meeting both grade point average and course hour requirements. An intercollegiate athlete must also meet all academic requirements of the athletic association and conference that his institution of higher learning is a member of in order to participate in name, image, or likeness activities.
A prospective intercollegiate athlete who enters into a name, image, or likeness contract shall disclose the name, image, or likeness contract to his institution of higher learning and its athletic department prior to enrollment or signing a financial aid agreement with the institution of higher learning or a team contract.
A current intercollegiate athlete must disclose the terms of a name, image, or likeness contract prior to signing the name, image, or likeness contract, in a manner designated by the institution of higher learning.
The disclosures required by this section must:
- describe the proposed use of the intercollegiate athlete’s name, image, or likeness, compensation arrangements, the name of the athlete agent, and a list of all parties to the name, image, or likeness contract; and
- be made in the manner designated by the institution of higher learning.
An institution of higher learning may fund, through its athletic department, an independent, third-party administrator to support education, monitoring, disclosures, and reporting concerning name, image, or likeness activities authorized pursuant to this chapter. A third-party administrator cannot be a registered athlete agent. An athlete agent is prohibited from having any affiliation with a third-party administrator.
Name, image, or likeness contracts authorized by this chapter must have a prominent disclosure at the beginning and end of the name, image, or likeness contract that an intercollegiate athlete must acknowledge separately. The disclosure required pursuant to this section shall be worded to warn the intercollegiate athlete of potential eligibility issues that may exist under current rules and policies of athletic conferences or collegiate athletic associations concerning the use of the intercollegiate athlete’s name, image, or likeness and shall clearly set forth the reporting requirements contained in Section 59-158-60.
All name, image, or likeness contracts must provide for an unequivocal ten-day revocation period for the intercollegiate athlete.
At least five days prior to the execution of a name, image, or likeness contract authorized by this chapter, the third-party proposing to enter into the name, image, or likeness contract with the intercollegiate athlete must disclose, in writing, to the intercollegiate athlete any prior or existing association, either formally or informally, with any institution of higher learning or any prior or existing financial involvement with respect to athletics.
A name, image, or likeness contract may not extend beyond an intercollegiate athlete’s participation in an athletic program at an institution of higher learning.
A name, image, or likeness contract shall be void if an intercollegiate athlete is convicted of a felony pursuant to Section 16-1-90.
If there is a conflict between the provisions contained in this chapter and those contained in Chapter 102, Title 59, then the provisions of this chapter shall govern. An athlete agent representing an intercollegiate athlete in a transaction authorized pursuant to this chapter must also comply with all provisions contained in Chapter 102, Title 59 that do not conflict with the provisions contained in this chapter.
An athlete agent shall comply with the federal Sports Agent Responsibility and Trust Act, 15 U.S.C. Sections 7801-7807.”

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SOUTH CAROLINA 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 South Carolina:

Graduated-Rate Individual Income Tax Structure
Top Marginal Individual Income Tax Rate = 7.00%

SOUTH CAROLINA NIL FAQS

What is the South Carolina NIL Law?
The South Carolina NIL Law is a bipartisan proposal that will allow student-athletes to begin accepting compensation for their name, image and likeness – collectively referred to as NIL.

When does South Carolina NIL Compliance Start?
South Carolina NIL started on July 1, 2021, per the NCAA Interim Policies and with the passage of Senate Bill 685, South Carolina State NIL law also took effect on July 1, 2021.

How does South Carolina NIL affect NCAA Student-Athletes?
South Carolina 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 South Carolina Name, Image, and Likeness Best Practices?
Both athletes and administrators in the State of South Carolina should start by making sure they have a proper understanding of the rules and regulations set forth by Senate Bill 685. A working knowledge of the ‘Dos and Don’ts’ for South Carolina 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 SOUTH CAROLINA SCHOOLS

What schools are affected by South Carolina NIL?

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

D1

Charleston Southern University
The Citadel
Clemson University
Coastal Carolina University
College of Charleston
Furman University
Presbyterian College
University of South Carolina
South Carolina State University
University of South Carolina Upstate
Winthrop University
Wofford College

D2

Allen University
Anderson University
Benedict College
Claflin University
Coker University
Converse University
Erskine College
Francis Marion University
Lander University
Limestone University
Newberry College
North Greenville University
Southern Wesleyan University
University of South Carolina Aiken

D3

Bob Jones University

NAIA

Columbia International University
Columbia College
Morris College
University of South Carolina Beaufort
Voorhees College

NJCAA

Denmark Technical College
Florence-Darlington Technical College
Spartanburg Methodist College
University of South Carolina Lancaster
University of South Carolina Salkehatchie
University of South Carolina Sumter

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South Carolina NIL Law for NCAA

SOUTH CAROLINA NIL LAW

Spry’s GPS: Navigating NIL

SOUTH CAROLINA NIL TAX IMPLICATIONS

SOUTH CAROLINA NIL FAQS

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NCAA SOUTH CAROLINA SCHOOLS

What schools are affected by South Carolina NIL?

D1

D2

D3

NAIA

NJCAA

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South Carolina NIL Law for NCAA

SOUTH CAROLINA NIL LAW

Spry’s GPS: Navigating NIL

SOUTH CAROLINA NIL TAX IMPLICATIONS

SOUTH CAROLINA NIL FAQS

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NCAA SOUTH CAROLINA SCHOOLS

What schools are affected by South Carolina NIL?

D1

D2

D3

NAIA

NJCAA

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