Maryland’s NIL laws, effective July 1, 2023, under Md. Code Ann., Educ. § 15-131, enable student-athletes at public colleges and universities to earn compensation for their name, image, and likeness (“NIL”) through third-party endorsements while protecting eligibility. High school athletes face stricter rules via the Maryland Public Secondary Schools Athletic Association (MPSSAA), prohibiting collectives and school IP use. This guide outlines key requirements for college and high school athletes and families, integrating NCAA rules post-House settlement.
Maryland NIL Law for College Athletes
Maryland’s statute prohibits public institutions from banning NIL deals, reducing scholarships, or penalizing athletes for non-team activity earnings. Key requirements include:
- Disclosure Mandate: Athletes must notify a designated school official before entering deals.
- No Direct School Pay: Institutions and conferences cannot pay athletes directly or via NIL agreements; no barriers to competitions for compliant schools.
- Fair Market Value: Compensation must match market rates; no pay-for-play tied to performance or enrollment.
- Prohibited Activities: No NIL during team/academic activities or representing the school; bans on conflicting categories like tobacco, banned substances, or adult entertainment.
- IP Restrictions: Cannot use university trademarks, logos, or marks without written permission.
- Agents Allowed: Hire advisors, agents, or tax professionals for NIL, but no agents for recruiting.
- Prospective Athletes: Pre-enrollment deals permitted if disclosed upon enrollment.
Institutions like University of Maryland provide education and enforce via compliance offices. Naval Academy prohibits NIL due to federal rules.
Maryland NIL Rules for High School Athletes
MPSSAA permits limited NIL under the “Safe and Fair Play” model (Jordan McNair Act), emphasizing equity.
- Permitted Activities: Endorsements, social media monetization, autographs—without school affiliation.
- Strict Prohibitions:
- No NIL collectives (ineligibility for violators).
- No school IP: uniforms, logos, mascots, or names (total firewall).
- No vice industries: alcohol, tobacco, gambling, adult entertainment.
- Academic/Eligibility: Maintain standards; taxable income (~9% state/local + federal).
Comparison: College vs. High School NIL in Maryland
| Aspect | College (Public Institutions) | High School (MPSSAA) |
|---|---|---|
| Collectives | Allowed (e.g., “One Maryland” at UMD) | Prohibited |
| School IP Use | Prohibited without permission | Total ban (firewall) |
| Vice Industries | Banned (alcohol, tobacco, gambling, adult) | Banned (alcohol, tobacco, gambling, adult) |
| Disclosure | To school official before deal | Not specified; focus on no school tie |
| Agents | Allowed for NIL | Not addressed; maintain eligibility |
| Tax Burden | ~9% (5.75% state + 3.2% local) | ~9% (5.75% state + 3.2% local) |
A 2025 Task Force is studying NIL programs and signaled potential updates, so stay tuned.
Conclusion
By understanding the NIL landscape and adhering to the guidelines set forth in Maryland, student-athletes can capitalize on their marketability while ensuring they remain eligible to compete.
As a student-athlete, you worked hard to achieve success professionally, personally, and academically. As a result of the countless hours of hard work, you now have the ability to financially benefit from your efforts through partnership and sponsorship opportunities with business entities, but you have to navigate the complex world of NIL agreements. In sports, you have coaches and mentors to assist you through complex situations. In business, like NIL agreements, if you need assistance or counsel, Steven Krieger Law would be delighted to discuss partnering with you and your team to help you maximize your potential.
