NCAA approves NIL transparency and consumer protection measures

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As expected, the NCAA Division I Council on Wednesday approved a series of NIL consumer protection and transparency measures that stakeholders have been exploring since early last summer.

During the association’s annual convention in Phoenix, the NCAA formally approved the implementation of a voluntary registry for NIL service providers, mandatory disclosures of NIL deals, more standardized contracts and educational programs for athletes and NIL entities. The measures are effective Aug. 1.

This marks the culmination of a legislative process that began last July when the NCAA held a two-day NIL stakeholder meeting in Indianapolis. The group’s goal was to draft a plan that was shared with the Division I Board of Directors and ultimately became proposals from the Division I Council

The registration of NIL service providers will include agents, financial advisors and others who support college athletes in NIL arrangements. Completely voluntarily, information sent to the NCAA will be published in a registry for athletes to access. 

In the registry, athletes could review their experiences with those service providers. In a statement from the DI council this fall, it said it would be similar to a “rate my professor” platform.

NIL protection measures important for NCAA leaders

Since Charlie Baker took over as the NCAA’s new president last spring, he’s been pushing for a standardized contract. According to the D-I Council, possible terms would include: a description of services, payment structure, duration of the contract, termination clause for breach of contract, athletes right to terminate at end of NCAA eligibility and authentication that compensation provided is not a recruiting inducement.

Any NIL agreements exceeding a certain value would be required to report specific information – such as compensation received, services, and length of deal – to schools within 30 days of entering an agreement. If a service provider was involved, the agent’s name would be included. Before a recruit could be issued a National Letter of Intent or written offer, they’d be required to disclose current or previous NIL deals.