Drexel University Athletics
Student Athlete NIL Education
What are NIL activities?
Name, Image, and Likeness (NIL) activities are any activities in which a student-athlete authorizes a person, business, or other entity to use their NIL and receive compensation in return for their work.
What are prohibited NIL activities?
Drexel student-athletes cannot earn compensation as a result of the use of their NIL in connection with any anything that is illegal, conflicts with University policy, or conflicts with NCAA rules.
Does Pennsylvania have a state law that applies to all Drexel student-athletes?
Yes, all Drexel student-athletes are held to the PA state law with NIL activities. The PA state law can be found here: Pennsylvania 2021 Act No. 26 Article XX-K approved by the Governor June 30, 2021
What should I be aware of?
Entering into an NIL contract is a business relationship. This can have legal and financial consequences. Income from your NIL activity can also impact your eligibility for need based financial aid and Pell grants, as well as have potential tax implications. Pennsylvania Law requires that you disclose all opportunities to Drexel's Compliance Office seven days prior to entering an NIL contract. Student-athletes are permitted to seek financial and legal guidance from a PA registered agent, lawyer, or financial advisor before entering into NIL agreements.
Should I seek approval prior to engaging in NIL discussions?
Student-athletes are permitted to engage in NIL activity. All NIL activities must comply with Pennsylvania law, Drexel University policies, NCAA policy and CAA policy.
Do I need to disclose my NIL activities?
Yes. Student-athletes engaging in NIL activities must complete the NIL disclosure form on INFLCR and ARMS at least two days prior to execution of the agreement to the Drexel Athletics Compliance Office for all NIL activities if the value of the deal is less than $600. If the value of the NIL deal exceeds $600 than you must submit through NIL Go within five business days of the executed contract (signed agreement).
Please note, completing the disclosure form is not an official approval of the NIL activity.
What will be included in my disclosure?
The disclosure will include information related to the use of your name, image, and likeness for the promotion of a brand, company, product, service, or other entity. It will also include compensation type and amount.
What is the approval process for NIL activities?
Drexel student-athletes will complete the Name, Image and Likeness Disclosure form that includes how the student-athlete plans to engage in the NIL activity. The Athletics Compliance Office will be notified and review the disclosure form to make sure it aligns with PA State Law, NCAA and CAA NIL Policy and Drexel University policies. If a student requests the use of university marks and logos, the Athletic Department's External Relations Office will be notified to verify that the request aligns with the Drexel Name and Insignia Policy and sponsor agreements.
If the agreement is greater than $600 than you will be required to submit via the new NCAA reporting system - NIL Go, and the opportunity will be reviewed and deemed cleared or not cleared via their Range of Compensation determination. If deemed not cleared, you will have multiple opportunities to resubmit with altered terms.
How can I be compensated for use of my NIL?
To be compensated, you must perform work related to your NIL. If you do not perform work, it would be considered an extra benefit and violate NCAA policy and impact your eligibility. You can be compensated either through physical or in-kind means. For example, you can be compensated through cash or a check (physical compensation), or free/reduced-priced gear or meal credits (in-kind compensation). You cannot receive NIL-related compensation from Drexel University.
How much can I be compensated for use of my NIL?
There is no limit on how much you can be compensated for use of your NIL, but any compensation you earn in connection with your NIL must be commensurate with the market value / range of compensation of your NIL.
When can I perform NIL activities?
You cannot participate in NIL activities during official team activities (ex. practices, competitions, and travel), nor during required academic meetings (ex. Class, advisor/professor meetings, ACHIEVE meetings).
Can I seek professional representation for NIL activity?
Yes. You may obtain professional representation by an athlete agent or attorney for the purpose of securing compensation for the use of your NIL. Any agent, financial advisor, or lawyer you seek must be licensed in the state. Your selected athlete agent or attorney may not also represent you for the purpose of marketing your athletics ability or reputation in a sport to secure an opportunity as a professional athlete nor represent/have represented Drexel. You must disclose any potential or secured professional representation for NIL activity, or professional athletics, to the Compliance Office.
Can my NIL terms (written or verbal) dictate what I wear or what equipment I use during practice and/or competition?
No. You are required to wear team-issued gear and use team-issued equipment during all CARA related activities.
Can I use university branded attire or material during promotional events (ex. filming an endorsement while wearing a Drexel hat)?
For use of the Athletic Department or University's name in any other manner, or the use of any logo, marks, or other intellectual property owned by the University in connection with noninstitutional NIL Activity, including all aspects of the uniform, mascot, unique colors and other defining insignia, Student-Athletes must receive prior written approval from the Athletics Compliance Office and Athletics External Relations Office. All use must comply with the Use of the Drexel Name and Insignia Policy. If you plan on wearing Drexel University gear, you must fill out the Name, Image and Likeness Addendum on ARMS after submitting your NIL transaction for approval on INFLCR.
Can I engage in NIL activities with sponsors of the University or entities that compete with sponsors of the University?
Student-Athletes may engage in NIL Activity with sponsors of the University or entities that compete with sponsors of the University; provided, however, such NIL Activity may not conflict with the provisions of any agreement to which the University is a party. The University will review the Name, Image and Likeness Disclosure Form and notify the Student-Athlete if the proposed NIL Activity presents a conflict with any existing agreements of the University. Any further revision to the proposed NIL Activity agreement must be disclosed and will be subject to further review by the University.
Can a NIL violation committed by a student-athlete affect eligibility for practices and competition?
Violations of this policy may result in appropriate disciplinary measures in accordance with state law, federal law, University policies, procedures and/or codes of conduct and may result in NCAA sanctions up to and including permanent ineligibility to participate in college athletics. In addition, violations of this policy by Student-Athletes may result in cancellation of athletics financial aid if a Student Athlete is deemed ineligible to participate in competition. NCAA amateurism rules still apply and procedure for violations of amateurism bylaws remain in effect.
INTERNATIONAL STUDENTS
Can I engage in NIL activities in the United States? / Can I enter into agreements for the use of my NIL?
International student-athletes should not enter into any NIL agreements without the guidance from Drexel University’s Office of International Students and Scholars to guard against any potential immigration/visa issues.
May I establish my own business selling products and services?
No, not in the United States. Note: An F-1 student can invest in the United States (e.g., buy stock in a company), but cannot receive income or remuneration as a result of providing services to any company, including one owned by the F-1 student.
May I use my NIL in connection with a personal crowdfunding page to raise money for my personal education expenses or family hardships?
If the page is set up while the student-athlete is outside of the US and no further activity is undertaken related to promotion of the page while in the US, then this activity is permissible. (Please consult with an immigration attorney.) However, the US government may consider active operation/updating/promotion of such a page while in the US to be no different than operating a business for income.
May I use my name, image, or likeness in connection with a personal crowdfunding page to raise money for charity?
Yes, provided you receive no compensation, remuneration, or benefit from the charity in any way. (Please consult with an immigration attorney.)
As noted above, it is important to differentiate services or labor performed in the United States from services or labor performed outside the Unites States. An F-1 student-athlete may be able to sign autographs, make appearances, endorse products, provide lessons, etc. outside the United States provided such activities comply with applicable Department of Athletics and NCAA rules and applicable federal and/or state law.
A Letter from ISSS to International Student Athletes
Dear students,
I am writing to you regarding the state law on college student athletes being compensated for the use of their name, image, and likeness (NIL). The law went into effect on July 1, 2021. As an international student, you may be interested to know how this law affects you and whether the Department of Homeland Security (DHS) would consider compensated NIL arrangements as “employment” for purposes of maintaining your F-1 status, and if so, whether your immigration status permits such employment.
At this time, it is still not clear if the DHS would consider NIL arrangements as “employment”. The only statement that they provided was a message in which they informed designated school officials (DSOs) that they are “aware of and actively monitoring proposed federal and state legislation pertaining the use of name, image and likeness of students athletes, including F nonimmigrant students.” They added that the DHS is reviewing how this legislation affects international student athletes and will provide updated guidance.
It is still unclear when this guidance will be issued. Until that happens, please refrain from entering into a NIL agreement or engaging in compensated NIL activity. This applies to potential foreign NIL agreements as well. Any work done while in the U.S. counts as “employment” in the U.S. even if done for a foreign employer and even if paid to a foreign bank account. If you have pressing questions about NIL engagements or have a pending offer, you should seek advice from an experienced immigration attorney.
ISSS will continue to closely monitor this issue and communicate additional information when available. Please let me know if you have any questions in the meantime.
Mladenka Tomasevic
Executive Director, ISSS
INFLCR
INFLCR provides college athletic departments with the content delivery and compliance platform to assist NCAA athletics programs in the management and monitoring of student-athlete Name, Image and Likeness activities. INFLCR ensures student-athletes are provided the tools and resources to participate in opportunities from NIL legislation.
INFLCR Verified enhances the student-athlete experience by offering a comprehensive solution for responsible brand-building on social media, as well as a fully compliant path to external commercial activity from NIL.
Drexel is partnering with INFLCR to help educate and prepare staff and student-athletes for new opportunities from current NIL legislation. INFLCR provides educational videos and services to assist student-athletes in brand strategy, compliance, best practices, compliance and more.
Additional questions?
Please email athleticscompliance@drexel.edu.