Troy University Athletics
NIL - Name, Image, Likeness
Q. May I provide name/image/likeness-compensation to a prospective student-athlete (i.e., PSA)?
A. No. The Alabama law states, “No individual, corporate entity, or other organization may:
(1) enter into any arrangement with a prospective student-athlete relating to the prospective student-athlete’s name, image, or likeness prior to their enrollment in an institution of higher education; or
(2) use inducements of future name, image, and likeness compensation arrangement to recruit a prospective student-athlete to any institution of higher education.” Generally, PSAs in Alabama participate in competition governed by state athletics associations that have amateurism rules which usually prohibit a PSA from using his/her NIL for compensation.
Q. May I enter into an agreement with a Troy University student-athlete (i.e., SA) for the use of the SA’s name, image or likeness (i.e., NIL) in exchange for money, goods or services?
A. Yes, subject to restrictions in state laws, as well as potential federal laws and NCAA rules; however, before a SA enters into such a contract, the SA must disclose the proposed NIL activity to Troy University.
Q. Does the Alabama NIL law state that a donor or fan of Troy University may provide a SA with any amount of compensation at any time as long as it is in exchange for the use of the SA’s NIL?
A. No, there are some restrictions. Of those restrictions, the most significant prohibit SAs from profiting from their NIL when they are engaged in official team activities and prohibit receiving compensation for their NIL that is based on:
The SA’s enrollment or attendance at Troy University or The SA’s athletic performance at Troy University
Q. May Troy or its staff members assist me with arranging for Troy SAs to utilize their NIL for compensation with my business, etc.?
A. No. Troy University and its staff members may not arrange for our SAs to participate in NIL contracts or activities; however, we may forward information about legitimate NIL-opportunities to our SAs for their consideration.
There are two reasons: (1) Alabama’s NIL law precludes an institution from providing NIL compensation and
(2) Alabama law generally prohibits the use of state resources for private gain.
Q. May I act as a marketing agent for a SA?
A. Yes, you may, but any agreement with the SA must be limited to marketing the SA’s NIL. Furthermore, if you are also an athlete agent, you must be registered and bonded as an athlete agent with Alabama’s Secretary of State and may not initiate any communication related to professional sport representation with the SA or SA’s family outside of athlete agent interviews organized by Troy University.
Q. May Troy’s marks, logos or other institutional property be used in a proposed NIL-contract with a Troy SA (e.g., SA filming endorsement ad while wearing Troy hat)?
A. No. Alabama state law prohibits SAs from earning NIL-compensation in exchange for property owned by Troy, or, for providing an endorsement while using intellectual property or other property owned by Troy (some exceptions may apply).
Q. May a SA receive NIL-compensation based on the SA’s athletic performance at Troy?
A. No.
Q. May a NIL contract stipulate that a SA must compete for, or attend, Troy (or any other NCAA member school)?
A. No.
Q. May I compensate a SA for the SA’s NIL when the SA is engaged in official team activities?
A. No. For example, if a SA is at a Troy Athletics organized fan event or at an away-from-home competition, you may not compensate the SA for the SA’s autograph or photo because the SA is engaged in official team activities. In essence, if the SA is participating in a Troy University/Athletics sanctioned event, no NIL compensation is permissible.
Q. Are there any industries or products that SAs may not endorse?
A. Yes. Alabama law prohibits a SA from entering into a contract for the use of the SA’s name, image or likeness in exchange for an endorsement of:
-Alcohol
-Tobacco products
-E-cigarettes or any other type of nicotine delivery device
-Anabolic steroids
-Sports betting
-Casino gambling
*The above list is not all inclusive
Q. What are other examples of when a SA may not engage in NIL-activity for compensation, according to Alabama
law or Federal law?
A. Other prohibited examples include compensation for SA NIL activity:
In Exchange For:
-Property owned by Troy (e.g., current jersey, gear, or equipment)
-An endorsement while using Troy intellectual property or other Troy-owned property
That Conflicts With:
-A Troy University contract
-A Troy Athletics’ sport’s written team rules/team contract, Athletics financial aid agreement or Athletics Department student-athlete rules or Troy University’s Code of Conduct or other
student rules.
*The above list is not all inclusive and exceptions may apply
Q. How long may a SA’s NIL related contract last?
A. The duration of the SA’s contract may not extend beyond the SA's participation in the Alabama institution’s intercollegiate athletics program.
Q. Will Troy assist SAs with other NIL related issues?
A. Yes. Troy will have a program to educate student-athletes in how to maximize the use of their NIL for compensation, as well as understanding associated issues (e.g., financial literacy, time management, budgeting).
Q. May international SAs engage in NIL activities?
A. No. Immigration laws prohibit the employment of international student-athletes (some exceptions may apply).
A. No. The Alabama law states, “No individual, corporate entity, or other organization may:
(1) enter into any arrangement with a prospective student-athlete relating to the prospective student-athlete’s name, image, or likeness prior to their enrollment in an institution of higher education; or
(2) use inducements of future name, image, and likeness compensation arrangement to recruit a prospective student-athlete to any institution of higher education.” Generally, PSAs in Alabama participate in competition governed by state athletics associations that have amateurism rules which usually prohibit a PSA from using his/her NIL for compensation.
Q. May I enter into an agreement with a Troy University student-athlete (i.e., SA) for the use of the SA’s name, image or likeness (i.e., NIL) in exchange for money, goods or services?
A. Yes, subject to restrictions in state laws, as well as potential federal laws and NCAA rules; however, before a SA enters into such a contract, the SA must disclose the proposed NIL activity to Troy University.
Q. Does the Alabama NIL law state that a donor or fan of Troy University may provide a SA with any amount of compensation at any time as long as it is in exchange for the use of the SA’s NIL?
A. No, there are some restrictions. Of those restrictions, the most significant prohibit SAs from profiting from their NIL when they are engaged in official team activities and prohibit receiving compensation for their NIL that is based on:
The SA’s enrollment or attendance at Troy University or The SA’s athletic performance at Troy University
Q. May Troy or its staff members assist me with arranging for Troy SAs to utilize their NIL for compensation with my business, etc.?
A. No. Troy University and its staff members may not arrange for our SAs to participate in NIL contracts or activities; however, we may forward information about legitimate NIL-opportunities to our SAs for their consideration.
There are two reasons: (1) Alabama’s NIL law precludes an institution from providing NIL compensation and
(2) Alabama law generally prohibits the use of state resources for private gain.
Q. May I act as a marketing agent for a SA?
A. Yes, you may, but any agreement with the SA must be limited to marketing the SA’s NIL. Furthermore, if you are also an athlete agent, you must be registered and bonded as an athlete agent with Alabama’s Secretary of State and may not initiate any communication related to professional sport representation with the SA or SA’s family outside of athlete agent interviews organized by Troy University.
Q. May Troy’s marks, logos or other institutional property be used in a proposed NIL-contract with a Troy SA (e.g., SA filming endorsement ad while wearing Troy hat)?
A. No. Alabama state law prohibits SAs from earning NIL-compensation in exchange for property owned by Troy, or, for providing an endorsement while using intellectual property or other property owned by Troy (some exceptions may apply).
Q. May a SA receive NIL-compensation based on the SA’s athletic performance at Troy?
A. No.
Q. May a NIL contract stipulate that a SA must compete for, or attend, Troy (or any other NCAA member school)?
A. No.
Q. May I compensate a SA for the SA’s NIL when the SA is engaged in official team activities?
A. No. For example, if a SA is at a Troy Athletics organized fan event or at an away-from-home competition, you may not compensate the SA for the SA’s autograph or photo because the SA is engaged in official team activities. In essence, if the SA is participating in a Troy University/Athletics sanctioned event, no NIL compensation is permissible.
Q. Are there any industries or products that SAs may not endorse?
A. Yes. Alabama law prohibits a SA from entering into a contract for the use of the SA’s name, image or likeness in exchange for an endorsement of:
-Alcohol
-Tobacco products
-E-cigarettes or any other type of nicotine delivery device
-Anabolic steroids
-Sports betting
-Casino gambling
*The above list is not all inclusive
Q. What are other examples of when a SA may not engage in NIL-activity for compensation, according to Alabama
law or Federal law?
A. Other prohibited examples include compensation for SA NIL activity:
In Exchange For:
-Property owned by Troy (e.g., current jersey, gear, or equipment)
-An endorsement while using Troy intellectual property or other Troy-owned property
That Conflicts With:
-A Troy University contract
-A Troy Athletics’ sport’s written team rules/team contract, Athletics financial aid agreement or Athletics Department student-athlete rules or Troy University’s Code of Conduct or other
student rules.
*The above list is not all inclusive and exceptions may apply
Q. How long may a SA’s NIL related contract last?
A. The duration of the SA’s contract may not extend beyond the SA's participation in the Alabama institution’s intercollegiate athletics program.
Q. Will Troy assist SAs with other NIL related issues?
A. Yes. Troy will have a program to educate student-athletes in how to maximize the use of their NIL for compensation, as well as understanding associated issues (e.g., financial literacy, time management, budgeting).
Q. May international SAs engage in NIL activities?
A. No. Immigration laws prohibit the employment of international student-athletes (some exceptions may apply).