NIL DEALS FOR HIGH SCHOOL KIDS: MHSAA Sets Rules For Opportunities

Click the AUDIO button to hear from Escanaba Athletic Director Nate Zaremba

ESCANABA---The Michigan High School Athletic Association on Tuesday announced more opportunities for high school students to enter into “Name and Likeness” agreements, although it won't be a free-for-all like it is right now in college sports.

The high school model will allow students to do appearances or social media promotions, for money, but there are strict guidelines, according to Escanaba Athletic Director Nate Zaremba.

“It's individualized opportunities for individual athletes,” Zaremba told RRN Sports. “A student-athlete who says they're going to do an NIL deal with (a local business), they can't use the school's name, or mascot, or the MHSAA name, image and likeness.”

And Zaremba says it has to be approved by the local school district, which does have the right to impose even tougher restrictions, as well as be approved by the MHSAA.

Why is the MHSAA going down this road?

“They've been talking with us athletic directors for the past two, three years, about this,” Zaremba said. “One of the biggest reasons the MHSAA did this is because they're concerned with other surrounding states doing this MIL. They don't want Michigan to lose some of our students to other states, like Illinois and Ohio. This is a kind-of a limited NIL.”

Technically, it's not called NIL. The MHSAA is calling it “Personal Branding Activities” program, which was done, in part, in response to a Michigan Legislature move to allow high school students to pursue selling access. But there are many restrictions.

Students also cannot use their presence on a specific team as part of a promotional deal, and this cannot be used as a bargaining chip for an athlete to transfer to a different school for athletics. They also cannot do any NIL deals at their high school facility, and a school's athletic department cannot work to help a student with such deals.

The full press release spelling out the rules is posted below.

The Representative Council of the Michigan High School Athletic Association has approved an expansion of personal branding activities (PBA) – also commonly referred to as Name-Image-Likeness (NIL) – allowing student-athletes at MHSAA member schools, effective immediately, to potentially benefit from such opportunities.

The MHSAA previously allowed some PBA opportunities, including the abilities for student-athletes to conducts camps, clinics and private lessons. The expanded policy allows student-athletes to capitalize on PBA through several more options as long as those activities are individual opportunities for individual students – while not disrupting competitive equity that would result from the creations of group activities including collectives and other pay-for-play opportunities now the norm at the collegiate level.

The topic of PBA/NIL had been discussed at length with membership over the last three years during MHSAA Update meetings and various other conferences with schools and their administrators. The Council had debated the possibility of these rule changes since the Michigan Legislature proposed amending state law to allow for student-athletes’ use of NIL in 2023, and also after closely monitoring similar developments in surrounding states.

“We have said from the start of this conversation that the MHSAA could be comfortable with a policy that provides individual branding opportunities for individual student-athletes, and this rule change provides those while excluding the possibility of collectives, and boosters and school people getting involved in those activities,” MHSAA Executive Director Mark Uyl said. “This is the essence of what NIL was supposed to allow in the first place, and we’re confident we’ve crafted language that allows true NIL opportunities without affecting competitive equity among our member schools.” 

Additional activities allowed by the new PBA policy include social media endorsements and promotions, personal appearances, photo sessions or autograph signings; modeling, advertising, merchandise, sports cards or apparel sales; and the use of a student’s name, image or likeness in marketing materials.

PBA activities must be consistent with MHSAA rules and school policies. A student-athlete may not capitalize on PBA based on athletic performances, awards/recognition, team participation or competition outcomes. A student-athlete also may not involve school names, logos, mascots, trademarks or other obvious identifiers, uniforms or other intellectual property, and PBA activity may not occur during school attendance or any MHSAA event (including practice) and cannot take place on school property or be promoted on school media channels.

Schools, including coaches and other employees, are not allowed to solicit, arrange, negotiate or promote PBA activities on behalf of their student-athletes. Doing so may put that school’s MHSAA membership in jeopardy, in addition to rendering that student-athlete ineligible for MHSAA athletics.

“The MHSAA will guard the competitive equity we have promoted for more than 100 years, and take with the utmost seriousness any attempts to break or blur this rule,” Uyl said. “We have provided clear language and sufficient guidance on what is allowed to assist our schools as they navigate this ever-changing landscape.”

PBA associated with products, services, individuals, companies or industries deemed inappropriate, unsafe or inconsistent with the values and goals of interscholastic athletics, as determined by the MHSAA – for example gaming or gambling, alcoholic beverages and banned substances – are also prohibited.

All PBA activities must be disclosed to the MHSAA within seven days of an opportunity or contract for disclosure and approval. Schools may choose to have stricter rules regarding PBA if they choose to do so.

For more details on what is and what is not allowed, and frequently asked questions about PBA in regards to MHSAA regulations, visit the MHSAA Name, Image, Likeness page.