Florida High School Athletes Can Now Commercialize Their NIL
In July 2021, Florida became the first state to allow collegiate athletes to earn compensation from the use of their name, image, and likeness (NIL). Three years later, the Florida High School Athletic Association (FHSAA) has unanimously approved a policy that allows high school athletes to do the same. The coming influx of sponsorship dollars paid to high school athletes brings with it a series of complex legal and ethical concerns that athletes, agents, and attorneys must address.
The FHSAA’s updated bylaw begins by disclaiming any liability regarding the athletes’ duty to keep informed of the eligibility requirements for each governing body that may have interest in their NIL activities now, or in the future. The list includes the National Collegiate Athletic Association (NCAA), National Association of Intercollegiate Athletics (NAIA), National Junior Collegiate Athletic Association (NJCAA), and any other governing body for a particular sport. The italicized catchall contemplates a collegiate governing body outside, or in the place of, the NCAA should that organization fail to maintain its supremacy within the college ranks. This is important because high school athletes must ensure that their agent or formal representative maintains a certain level of situational awareness surrounding the current NIL landscape and things to come.
The FHSAA bylaws also warn high school athletes about the detrimental effects of signing a professional playing contract in any sport or “hiring a registered agent to manage his/her athletic career, other than for the purpose of advising on NIL related matters” while participating in high school athletics. An Athlete Agent must be licensed by the State of Florida in order to represent a high school athlete for purposes of advising on NIL. See Fla. Stat. § 468.453. Unlicensed activity may result in a violation of Florida law, which is a felony of the third degree. However, the athletes themselves may not be penalized for the sins of an agent because protecting high school athletes from such unscrupulous actors is at the heart of the revised rules.
The updated bylaws go on to include a non-exhaustive list of what the FHSAA has deemed “permissible [NIL] activities,” to include commercial endorsements, promotional activities, social media presence, product, and service advertisements. Importantly, these NIL agreements are limited to an athlete’s high school period of athletic eligibility and shall not extend beyond the individual’s graduation date. The University of Florida previously ran into an issue regarding the tenure of an NIL agreement for one of their athletes that extended beyond the athlete’s collegiate eligibility, making national headlines. High school athletes and their parents must make sure they are choosing the right representation to protect against similar disputes, which may have lasting financial implications.
Finally, high school athletes must be conscious of the medium and mode of any NIL agreements. The FHSAA details where, when, and how an endorsement may be done, and more importantly, when NIL activities may not be used, including in recruiting efforts. Athletes participating in every tier of high school athletics should seek advice from legal counsel who understand the issues and are able to address them to the ultimate benefit of the athletes.