As of July 1, 2021, student-athletes in Virginia have been empowered by the state’s adoption of NIL laws, allowing them to profit from their name, image, and likeness while maintaining their athletic eligibility. This significant development is reshaping the landscape of college sports, providing athletes with new opportunities for financial gain. However, it’s crucial for both student-athletes and their families to understand the specific regulations governing NIL in Virginia to navigate this new terrain effectively.

Overview of Virginia’s NIL Legislation

Virginia’s NIL law permits student-athletes to enter into agreements that allow them to receive compensation for their name, image, and likeness. This law applies to all individuals participating in intercollegiate athletics at Virginia colleges and universities, including athletes at public and private institutions.

Key Features of Virginia’s NIL Law

1. Compensation for NIL Rights: Student-athletes in Virginia can now receive compensation for the use of their name, image, or likeness without jeopardizing their NCAA eligibility. They can engage in a wide range of activities, including endorsements, sponsorships, social media promotions, and other commercial ventures.
2. Disclosure Requirements: According to Virginia’s NIL law, student-athletes must disclose any NIL agreements to their respective institutions. The law encourages transparency and helps institutions maintain compliance with NCAA regulations.
3. Protection Against Retaliation: Virginia’s law prohibits schools from retaliating against student-athletes for pursuing NIL opportunities. This ensures that athletes can freely engage in commercial ventures without fear of losing their scholarships or facing disciplinary actions.
4. Third-Party Involvement: Unlike some states, Virginia’s law does not require student-athletes to disclose the financial terms of their NIL agreements to the NCAA, but they must provide information to their schools. This distinction can affect how student-athletes report their earnings and agreements.
5. No Use of University Branding: Student-athletes in Virginia are prohibited from using the university’s name, trademarks, or logos without permission when engaging in NIL activities. This requirement helps protect the institution’s brand while allowing athletes to build their personal brands.
6. Prohibition of Pay-for-Play: Virginia law explicitly states that student-athletes cannot receive compensation in exchange for athletic performance. Endorsements and sponsorships must be based on the use of their name, image, or likeness rather than as a direct payment for play.
7. Record Keeping: While the law does not impose stringent guidelines on record-keeping, student-athletes should maintain clear and comprehensive records of all NIL agreements, earnings, and disclosures to ensure compliance with both state law and NCAA regulations.

Virginia Colleges vs Virginia High Schools

In Virginia, there are distinct differences in how Name, Image, and Likeness (NIL) opportunities are regulated for college athletes compared to high school athletes. Understanding these differences is essential for student-athletes and their families as they navigate NIL opportunities.

NIL Regulations for Virginia Colleges

1. Eligibility to Earn Compensation: College student-athletes at NCAA-affiliated institutions are allowed to earn compensation from NIL agreements without losing their eligibility, provided they comply with NCAA rules and any institutional policies.
2. Contractual Freedom: College athletes can enter into various types of NIL agreements, including sponsorships, endorsements, and appearances. They have the right to negotiate contracts and can hire agents or advisors to help manage these agreements.
3. Disclosure Requirements: Virginia colleges require student-athletes to disclose NIL agreements to their institutions, allowing them to monitor compliance with NCAA regulations.
4. Prohibition of Pay-for-Play: College athletes cannot receive compensation directly tied to their athletic performance, ensuring their agreements are consistent with NCAA guidelines.

NIL Regulations for Virginia High Schools

1. Restrictive Regulations: High school athletes in Virginia face stricter regulations regarding NIL. The Virginia High School League (VHSL) permits NIL activities but outlines specific limitations, including restrictions on the nature of agreements.
2. Limitations on Collectives: High school athletes are not permitted to engage in NIL collectives, which are groups that pool resources to offer sponsorships or support to athletes.
3. No Institutional Branding: Unlike college athletes, high school athletes cannot use their school’s name, logo, or branding in their NIL agreements without prior permission, which can limit potential endorsement opportunities.
4. Complexity of Contracts: High school athletes are often in a less formal negotiating environment, which can make securing fair compensation more challenging without proper guidance.

Summary of Key Differences Between Virginia Colleges and High Schools

Aspect	Virginia Colleges	Virginia High Schools
Eligibility to Earn Compensation	Allowed under NCAA regulations	Limited and subject to VHSL restrictions
Contractual Freedom	Broad scope to enter various agreements	More restrictive; limited options
Disclosure Requirements	Must disclose agreements to institutions	Varied disclosure requirements by the VHSL
Prohibition of Pay-for-Play	Yes, must avoid pay-for-play arrangements	Yes, similar restrictions apply
Institutional Branding Use	Allows some branding in deals	Prohibited without permission

In summary, while both college and high school athletes in Virginia can engage in NIL activities, the regulations governing these opportunities differ significantly in terms of freedom, disclosure, and institutional branding rights. This understanding is crucial for student-athletes and their families as they seek to maximize their NIL potential while remaining compliant with applicable rules and policies.

Conclusion

Virginia’s NIL law marks a transformative moment for student-athletes, providing them with the ability to capitalize on their personal brands and earn income. By understanding the specific requirements and obligations associated with NIL activities in Virginia, student-athletes and their families can navigate this exciting new landscape effectively and responsibly. With proper planning, guidance, and adherence to state regulations, student-athletes can maximize their NIL potential while maintaining their academic and athletic commitments.

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.