On Tuesday, June 4, 2024, the Board of Directors for the Florida High School Athletic Association (FHSAA) unanimously approved a significant policy change allowing high school athletes to profit from their Name, Image, and Likeness (NIL). The revised language to Section 9.9 – Amateurism and Name, Image, and Likeness (NIL) of the Bylaws of the FHSAA can be found here. This decision marks a major shift in high school sports and aligns Florida with over 30 other states permitting NIL deals for student-athletes. The State Board of Education will vote to ratify the changes to Section 9.9 on July 24, 2024.
The FHSAA's unanimous vote to rewrite Policy 9.9 introduces several key provisions:
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Earnings from NIL: High school athletes can now earn money from their NIL without jeopardizing their athletic eligibility. This includes endorsements and other commercial opportunities previously prohibited under amateurism rules.
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Registered Agents: High school athletes can now sign a professional playing contract in any sport and a registered agent to manage his/her athletic career for the purpose of advising on NIL related matters.
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Transfer Restrictions: Schools cannot use NIL as a recruiting tool. Additionally, students transferring schools in-season cannot secure NIL deals without a good cause exemption from their district.
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Compliance and Penalties: Violations of NIL policies will result in a formal warning and termination of the NIL agreement for the first offense, and a one-year suspension for a second offense.
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Prohibited Partnerships: NIL deals with adult entertainment, alcohol, tobacco, vaping products, cannabis, controlled substances, gambling, weapons, and political or social activism organizations are prohibited.
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No NIL Collectives: Unlike colleges, high schools are prohibited from setting up NIL collectives to pool funds from donors and facilitate deals for athletes.
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Parental Involvement: Students and their parents or guardians are responsible for negotiating NIL deals, and must hold harmless their school, its district or governing body, and FHSAA from any liability related to, or arising from the NIL agreement.
This landmark policy has far-reaching implications:
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Competitive Balance: There are concerns that NIL could accelerate recruiting and exacerbate competitive imbalances, similar to issues seen in collegiate sports.
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Regulation Challenges: The lack of compliance departments in high schools poses significant challenges for enforcing these new rules.
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Economic Opportunities: This policy opens new avenues for student-athletes to benefit financially from their talents, promoting a more level playing field with states that have already adopted similar measures.
The new rules take effect for the 2024-25 season, meaning high school athletes in Florida could start benefiting from NIL deals within months. While this presents exciting opportunities, it also requires careful navigation to ensure compliance and avoid unintended consequences.
Our Intellectual Property Practice Group at Stearns Weaver Miller, P.A. will continue to monitor these developments closely.
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