FAQs about the Illinois Student-Athlete Endorsement Rights Act (Last Updated July 6, 2023)
NOTE: These FAQs answer questions about the Illinois Student-Athlete Endorsement Rights Act (the “Illinois Law”). Other laws, rules and policies may apply to activities by Loyola and student-athletes that are permitted under the Illinois Law. In the event of any conflict between these FAQs and the Illinois Law, the Illinois Law controls. If there are any questions about the Illinois Law, whether or not they are addressed by these FAQs, please contact Tom Sorboro, Senior Associate Athletics Director—External Operations, at (773)-508-2731 or tsorboro@luc.edu, or Drew Schneider, Associate Athletics Director–Compliance, (773)-508-2894 or aschneider12@luc.edu.
Definitions and Principles
Question 1: What name, image, likeness and voice rights (collectively, “NIL” and “NIL rights”) do student-athletes have under the Illinois Law?
Answer: A student-athlete may earn market-value compensation for use of their NIL and may sign a contract with a third party licensing their NIL rights (an “NIL contract”). Under the Illinois Law, “likeness” means a physical, digital, rendering or other depiction or representation of a student-athlete that reasonably identifies the student-athlete with particularity and is not reasonably considered to be a generic representation of a member of Loyola athletics (e.g., a student-athlete's uniform number or signature).
Question 2: What is “compensation” under this Illinois Law?
Answer: Compensation is anything of value and includes cash, gifts, in-kind items of value, social media compensation, payments for licensing or use of publicity rights, payments for other intellectual or intangible property rights and any other form of payment. Compensation does not include: (a) tuition, room, board, books, fees and personal expenses and any other financial aid, benefits or awards that Loyola provides; (b) federal, state or other financial aid, scholarships or awards unrelated to and not awarded because of the student-athlete’s participation in athletics (for example, need-based financial aid); and (c) wages and benefits to a student-athlete for work actually performed (but not for athletic ability or participation in Loyola athletics). Please consult Drew Schneider, Associate Athletics Director–Compliance, with any questions regarding the impact of NIL on student-athlete financial aid.
Question 3: Is compensation received by a student-athlete from the licensing of NIL Rights subject to income or other tax?
Answer: Student-athletes should consult an appropriate advisor, independent of Loyola, regarding the tax treatment of compensation received for NIL Rights. Generally, an amount included in income is taxable unless it is specifically exempted by law. The student-athlete is responsible for complying with all tax reporting and tax payment obligations.
Question 4: Does the Illinois Law apply to individuals before they enroll at Loyola?
Answer: Yes, but the Illinois Law only permits student-athletes to earn compensation while enrolled at Loyola. Incoming freshmen and transfer student-athletes must be enrolled before signing NIL contracts earning compensation, and those NIL contracts cannot extend beyond the student-athlete's participation in Loyola athletics. To be “enrolled” under the Illinois Law means being registered for courses or attending athletic practice or class at Loyola.
Question 5: How do NCAA rules impact the Illinois Law?
Answer: Effective July 1, 2021, the NCAA enacted an interim policy that allows student-athletes to engage in NIL activities that are consistent with state law, and universities are responsible for determining whether the NIL activities are consistent with state law. This policy remains in effect until there is federal legislation relating to NIL activities or the NCAA changes its policy. Please consult Drew Schneider, Associate Athletics Director–Compliance, with any questions regarding NCAA rules.
NIL Activities By Student-Athletes
Question 6: What NIL activities are permitted under the Illinois Law?
Answer: The Illinois Law does not list specific permitted NIL activities, but based on its general requirements, possible examples of permitted NIL activities may be the following, depending on the facts and circumstances of each arrangement and provided that the student-athlete must be doing these activities independent of Loyola and not while participating in Loyola-sanctioned activities:
- Serving as a spokesperson or endorser for a commercial product or service.
- Sale of autographs on items (excluding items provided to the student-athlete by Loyola for athletics participation)
- Appearing in print, radio, television, digital, social media, or other endorsements for commercial products or services.
- Allowing the use one’s voice in commercials on the radio, television, digital, social media, or other broadcast means.
- Personal appearances by a student-athlete to promote commercial products or services.
- Social media influencer (compensation for social media activity/posting).
Please also note that use of NIL rights may be compensated or uncompensated. Please consult Drew Schneider, Associate Athletics Director–Compliance, with any questions regarding permitted NIL activities.
Question 7: Can a student-athlete refer to their involvement in Loyola athletics in NIL activities?
Answer: The Illinois Law does not expressly address this, but referencing participation on a Loyola team is likely permitted. There are restrictions, however, regarding the use of Loyola’s marks, logos, verbiage, designs and name (collectively, “Loyola Marks”), as discussed below.
Question 8: May a student-athlete receive compensation from a third-party employer based on the employer’s licensing of the student-athlete’s NIL Rights?
Answer: Yes, if such arrangement is in compliance with the Illinois Law. For example, a student-athlete may be employed by a sports club as an instructor and receive compensation both for the club’s use of the student-athlete’s NIL to promote the club and the value of the instructional lessons the student-athlete provided. Please consult Drew Schneider, Associate Athletics Director–Compliance, with any questions regarding student-athlete employment unrelated to participation in Loyola athletics.
Agents and Professional Services for Student-Athletes
Question 9: May student-athletes use agents and other professional service providers in connection with their NIL activities?
Answer: Yes. Such parties may be retained by a student-athlete at the student-athlete’s expense. An agreement with an agent (or an NIL contract) may not extend beyond the student-athlete's participation at Loyola.
Question 10: May a professional services provider that provides media rights, licensing, and other marketing services contract with a student-athlete for the purpose of managing, promoting or operating a student-athlete’s NIL activities?
Answer: The Illinois Law does not expressly address specific types of professional service providers, other than referring to “agents, legal representation and other professional service providers”. However, a student-athlete is broadly permitted to “obtain and retain an agent for any matter or activity relating to… compensation”.
Question 11: Does the Illinois Law permit Loyola to provide such professional services?
Answer: No.
Question 12: Does the Illinois Law permit Loyola to be involved in identifying, selecting, arranging or providing payment for professional service providers related to NIL activities?
Answer: No.
Prohibitions, Limitations and Conflicts
Question 13: Does the Illinois Law prohibit a student-athlete participation in NIL activities in any specific categories?
Answer: Yes. Students-athletes cannot sign NIL contracts that violate NCAA rules or Loyola’s mission and values. Generally, this means that student-athlete endorsements cannot negatively impact or reflect adversely on Loyola or its reputation or standards or bring about public disrepute, embarrassment, scandal or ridicule. Specific examples of prohibited endorsements include gambling, sports betting, controlled substances, marijuana, tobacco or alcohol, alternative or electronic nicotine products or delivery systems, performance-enhancing supplements and adult entertainment.
Question 14: Does the Illinois Law place limits on Loyola athletic program boosters?
Answer: Yes. Like other parties, Loyola boosters cannot offer a prospective student an NIL Rights contract as an incentive to directly or indirectly induce the prospective student to enroll at Loyola or compensate a student-athlete for their athletic performance or participation. Under the Illinois Law, a “booster” is a person or entity that has made, within the past five years, a financial contribution in an amount greater than $1,000 to Loyola (not counting purchasing season or single game tickets to Loyola athletics event).
Question 15: Does the Illinois Law allow Loyola to identify additional areas of NIL activities in which student-athletes cannot engage?
Answer: Yes. First, to protect the integrity of Loyola’s mission and Loyola athletics, Loyola may impose reasonable limitations on the dates and times that a student-athlete may participate in endorsement, promotional, social media or other activities related to the license or use of the student-athlete's NIL rights. Second, Loyola may prohibit a current student-athlete’s involvement in NIL activities that conflict with existing Loyola exclusive or other contracts. For example, student-athletes may sign contracts with competitors of these exclusive Loyola sponsors, but cannot represent these competitors (e.g., wear their shoes or attire) while they are participating in university-sanctioned activities.
Loyola Involvement in NIL Activities
Question 16: Can Loyola enter NIL contracts with a student-athlete or provide compensation to a student-athlete or their families?
Answer: No, and neither can the Atlantic 10 Conference, the Midwestern Intercollegiate Volleyball or the NCAA under the Illinois Law. Loyola can still pay wages and benefits to a student-athlete for completely separate Loyola work that is not for athletic ability or participation in Loyola athletics. Nothing in the Illinois Law requires Loyola to directly or indirectly identify, create, facilitate, arrange, negotiate, or otherwise enable NIL opportunities for a prospective or current student-athlete.
Question 17: Does the Illinois Law prohibit Loyola promotions that use a student-athlete’s NIL?
Answer: No. Loyola may use a student-athlete’s NIL to support and promote Loyola’s athletics program and Loyola’s educational and mission activities. Under the Illinois Law, student-athletes cannot be compensated for Loyola’s use of their NIL.
Question 18: Can Loyola provide a student-athlete with any type of assistance relating to NIL activities?
Answer: Yes. Although the Illinois Law does not require Loyola to do so, Loyola may (and the Illinois Law encourages Loyola to) provide educational assistance, such as: (a) providing educational programming on NIL and associated regulations; (b) assistance with compliance and disclosure requirements; and (c) financial literacy, brand management, and life skills programming designed for student-athletes (but Loyola cannot provide marketing, advertising, referral or solicitation information by providers of financial products or services as part of its education programming). The Illinois Law also permits Loyola to fund an independent, third-party administrator to support education, monitoring, disclosures and reporting concerning NIL activities. No other assistance is permitted. For example, Loyola cannot pair a student-athlete with a company seeking a student-athlete for an endorsements. Loyola has engaged the company INFLCR to provide support as allowed by the Illinois Law. Please consult Tom Sorboro, Senior Associate Athletics Director—External Operations, with any questions regarding INFLCR.
Question 19: Can a student-athlete use Loyola’s Marks in connection with NIL activities?
Answer: No, unless pre-approved by Loyola in writing, in Loyola’s sole discretion and consistent with Loyola’s policies and procedures concerning licensing of Loyola Marks. Please consult Tom Sorboro, Senior Associate Athletics Director—External Operations, with any questions regarding Loyola Marks.
Question 20: May a student-athlete use a personal social media account for NIL activities if the personal social media account includes Loyola Marks (e.g., posts including images of the student-athlete in uniform)?
Answer: A student-athlete’s personal social media platform may include images of the student-athlete in uniform. However, Loyola Marks should not appear in any compensated social media post, unless pre-approval has been provided by Loyola as described above.
Student-Athlete Disclosure Requirements
Question 21: What information must a student-athlete disclose to Loyola in connection with retaining professional service providers?
Answer: The student-athlete must provide Loyola’s Athletic Department with written notice and a copy of any NIL contract for professional services in the manner and at the time determined by Loyola. With the support of INFLCR, Loyola will provide a platform for student-athlete disclosures, and questions about disclosure may be directed to Tom Sorboro, Senior Associate Athletics Director—External Operations.
Question 22: What information must a student-athlete disclose to Loyola in connection with NIL contracts?
Answer: A student-athlete must disclose to Loyola’s Athletic Department the existence and substance of all NIL contracts in a time and manner reasonably determined by Loyola. In particular, all NIL contracts that contemplate cash or other compensation to the student-athlete of $500 or more must be formalized in a written contract. Loyola will review NIL contracts for purposes of confirming that Loyola satisfies its responsibilities under the Illinois Law.
Question 23: Does the Illinois Law require the use of a specific disclosure form?
Answer: No, though it does specify certain required content. Loyola may suggest the use of standard disclosure forms and platforms for student-athletes to use in submitting required disclosures for NIL activities. Questions about disclosure and INFLCR may be directed to Tom Sorboro, Senior Associate Athletics Director—External Operations.
For an overview of the Illinois Student-Athlete Endorsement Rights Act, please click here.
