For local business owners in Georgia, the legalization of Name, Image and Likeness (NIL) deals can open up exciting opportunities. Partnering with local athletic talent can skyrocket your brand’s visibility while building deep roots in your community.
However, these marketing opportunities can come with intellectual property (IP) and athletic association regulation hurdles. Understanding the rules of these agreements can help you approach them with confidence.
The no co-branding rule
While your business can license a student athlete’s identity for advertising, you cannot also use the school’s protected IP and branding without permission. This includes:
- Team logos
- School names
- Mascots
- Uniforms
- Campus facilities
If you want to feature those elements in an ad or promotion, you must secure a separate licensing agreement. However, these can often be costly and are subject to additional approval.
Regulatory requirements
When entering into NIL agreements with student athletes, the National Collegiate Athletic Association (NCAA) has specific rules that you need to follow. Student athletes may accept these deals when all criteria are met:
- They are paid for their NIL usage in things like ads, posts or appearances
- Your deal supports a real business purpose
- Their payment is within a reasonable range as others with similar fame or influence
- The athlete can use an agent or marketing professional for NIL work
Under 2026 rules, athletes also need to report third-party deals worth $600 through NIL Go. High school and two-year college (JUCO) athletes generally have a 14-day window to submit their reports. Moreover, current and Division 1 transfer athletes have a stricter timeframe of five business days.
Bulletproofing your NIL contract
When drafting your agreement, it is crucial to state clear deliverables that your business wants from the athlete. It is best to use specific language around exactly how many social media posts or public appearances you require from them.
Additionally, you can include morals clauses to protect your professional reputation if the athlete faces disciplinary issues. These provisions also ensure compliance with Georgia’s strict rules regarding contracts with minors.
Protecting your business
Having safeguards from trademark disputes is vital when exploring a potential NIL partnership. A lawyer can help draft an airtight, compliant contract before you launch a campaign.