New Virginia and North Carolina NIL Policies for High School Athletes

The Virginia High School League (VHSL) and the North Carolina High School Athletic Association (NCHSAA) both approved new NIL policies that will allow high school athletes to pursue NIL deals and maintain their eligibility, effective July 1, 2023.

The number of states that allow for high school NIL deals has been steadily increasing since the initial wave of legislation following NCAA v Alston and the dawn of the NIL era in college sports. North Carolina and Virginia will now be the 27^th and 28^th states to allow for high school NIL deals in some capacity.

Virginia

Much like its counterparts, the new VHSL rule prohibits pay for play, and the board has emphasized that “NIL contracts/agreements need to come from analysis of the value an athlete brings for providing a specific service/activity, not as an incentive for enrollment decisions or membership on a team.” The new rule also mirrors some of the restrictions from the Virginia NIL statute.  High School athletes are prohibited from using the intellectual property, district or region name, uniforms, mascots, or logos of a VHSL member school in their NIL endeavors. Additionally, they cannot endorse or promote goods or services during team activities or events. NIL deals involving corporate partners from the adult entertainment, alcohol, tobacco/e-smoking, opioid, casinos, gambling, sports betting, weapons, firearms, and ammunitions industries—also known as the “vice industries”— are strictly prohibited.

While these new rules reflect much of Virginia’s Intercollegiate NIL statute, there is a definitional distinction as the statute defines student-athletes as “an individual enrolled at an institution who participates in intercollegiate athletics.” In light of this expansion, there is also an understandable concern about protecting high school students and their families in their NIL endeavors. In addition to the general rules against contracting with minors, athletes must notify their principal or athletic director in writing within 72 hours of entering an NIL agreement.

North Carolina

The North Carolina Policy states that athletes “may engage in certain commercial activities to receive tangible benefits,” including appearances, athlete-owned brands, autographs, camps, clinics, group licensing, in-kind deals, instruction, NFTs, product endorsements, promotional activities and social media.

The policy also states that school personnel cannot use NIL for recruitment and enrollment or act as an athlete’s agent. Additionally, any form of pay for play remains prohibited. There is also a list of prohibited conduct, including a general prohibition on NIL activity that features the athlete’s school, conferences, the NCHSAA, or takes place during sporting events or the school day, and a list of prohibited “vice industries” that may not engage athletes in NIL deals.

Notably, the North Carolina policy does provide added safeguards for athletes and their families. Athletes are required to report NIL deals to their coach and athletic director, who must then submit that information to the NCHSAA. Additionally, athletes, parents and legal guardians, coaches, athletic directors, and principals have to complete the National Federation of State High School Associations NIL course annually.

In the coming weeks and months, it is expected that other high school conferences within these states may pass similar rules. In light of that inevitable consensus, there may also be new or amended legislation to incorporate high school students into the current definition of student-athletes under the NIL statute.