This bill was introduced to Tennessee’s House of Representatives in early Feburary 2022, and took less than three months to pass through the Senate and the House, and ultimately, be signed into law. The following components have been spelled out from the Bill:
AMENDMENT #1: Rewrites this bill and revises present law provisions governing the use of an intercollegiate athlete’s name, image, or likeness.
Under present law, an intercollegiate athlete at a four-year public or private institution of higher education located in this state, other than an institution of higher education governed by the board of regents of the state university and community college system, (an “institution”) may earn compensation for the use of the athlete’s name, image, or likeness. Such compensation may not be provided in exchange for athletic performance or attendance at an institution and may only be provided by a third party. This amendment removes the reference to the athlete being “at an institution” and the provision that compensation only be provided by a third party, and clarifies that an institution or an officer, director, or employee of the institution may not compensate a current or prospective intercollegiate athlete for the intercollegiate athlete’s name, image, or likeness.
This amendment removes the present law provision whereby an institution, or an officer, director, or employee of the institution may not be involved in the development, operation, or promotion of a current or prospective intercollegiate athlete’s name, image, or likeness, including actions that compensate or cause compensation to be provided to athletes. This amendment instead provides that an institution’s involvement in support of name, image, or likeness activities does not constitute compensation to or representation of an intercollegiate athlete by the institution for purposes of this part so long as the institution does not coerce, compel, or interfere with an intercollegiate athlete’s decision to earn compensation from or obtain representation in connection with a specific name, image, or likeness opportunity.
Present law prohibits an entity whose purpose includes supporting or benefitting the institution or its athletic program from compensating or causing compensation to be provided to a current or prospective intercollegiate athlete for the athlete’s name, image, or likeness if the arrangement is contingent on the athlete’s enrollment or continued participation at an institution. This amendment removes this provision.
This amendment adds that:
(1) Parents, siblings, grandparents, spouses, and legal guardians of an intercollegiate athlete who represent the intercollegiate athlete for the purpose of securing compensation for the use of the intercollegiate athlete’s name, image, or likeness are not considered to be athlete agents for purposes of this part, and are not subject to the requirements for athlete agent; and
(2) An athletic association’s governing actions, sanctions, bylaws, and rules must not interfere with an intercollegiate athlete’s ability to earn compensation and must not otherwise impact an intercollegiate athlete’s eligibility or full participation in intercollegiate athletic events, unless the intercollegiate athlete has committed a violation of the rules of an institution or an athletic association or this act is invalidated or rendered unenforceable by operation of law.
Initial Tennessee NIL Law:
This bill was introduced to Tennessee’s House in early February 2021, and only took about three months to pass through the House and the Senate, and ultimately, be signed into law. The following components have been spelled out from the Bill:
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 Tennessee:
What is the Tennessee NIL Law?
As enacted, the Tennesee NIL Law authorizes an intercollegiate athlete at a four-year public or private institution of higher education located in this state (Tennessee), other than an institution of higher education governed by the board of regents of the state university and community college system, to earn compensation for the use of the athlete’s name, image, or likeness under certain conditions.vds
When does Tennessee NIL Compliance Start?
Tennessee NIL started on July 1, 2021, per the NCAA Interim Policies. With the passage of House Bill 1351, Tennessee State NIL laws will take effect on January 1, 2022.
How does Tennessee NIL affect NCAA Student-Athletes?
Tennessee 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 Tennessee Name, Image, and Likeness Best Practices?
Both athletes and administrators in the State of Tennessee should start by making sure they have a proper understanding of the rules and regulations set forth by House Bill 1351. A working knowledge of the ‘Dos and Don’ts’ for Tennessee 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 Tennessee, the following schools will be affected:
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