North Carolina’s public high school athletes will soon be able to profit off their names, images and likenesses.
For the past several years, debate has raged nationally over the ethics of “NIL” deals, in which college and high school athletes can be paid for endorsing businesses or making public appearances. On Oct. 1, North Carolina became the latest state to extend the right to high school athletes, following a ruling from a Wake County judge.
The ruling stems from a complaint filed in Wake County Superior Court by Rolanda Brandon, the mother of star Grimsley (Greensboro) quarterback Faizon Brandon, one of the top high school quarterbacks in the nation. The complaint alleged that Brandon had been offered payment from a trading card company for signed memorabilia, and was prevented from accepting the deal under unlawful state Board of Education rules.
The Brandons’ attorney, Mike Ingersoll, argued that the BoE had overstepped its authority to “regulate” NIL rules for public school athletes, after the board voted this June to ban all NIL deals until the 2025-26 school year. Ultimately, Wake County Superior Court Judge Graham Shirley sided with the plaintiffs, ordering the BoE to begin allowing NIL deals immediately.
The change will take effect pending a written order from the judge, which could come as soon as the next few weeks. North Carolina is the 40th state to extend NIL to high schools in recent years, after the National Collegiate Athletic Association approved the practice in 2021.
Technically, this will be the second time public high school athletes have been allowed to enter NIL deals in the state, after the N.C. High School Athletic Association Board of Directors voted to approve the practice in May 2023. A few months later Republican state legislators passed a bill stripping the NCHSAA of authority, transferring most of the governing body’s powers to the state Department of Public Instruction.
The BoE’s proposed 2025-26 NIL rules had been scheduled for a public comment period this fall, ahead of a possible vote as early as January. Because most of the state’s private high schools are members of a separate governing body, the N.C. Independent Schools Athletic Association, their athletes have been allowed to make NIL deals since July.
NIL Rules
Under the new rules, any NCHSAA member athlete can enter into an NIL deal, provided that their head coach, athletic director, school principal, superintendent and local BoE chair receive a copy of the agreement. Athletes may receive money, in-kind gifts, discounts and other benefits from deals, which cannot be conditioned on their performance.
- Athletes can be compensated for a variety of activities, such as:
- Endorsing products or services, including commercial and social media advertisements
- Public appearances such as autograph signings, athletic camps and clinics, and other in-person events
- Sale of non-fungible tokens (NFTs)
The athlete also must take a free NIL education course from the National Federation of State High School Associations, and submit a certificate of completion to the NCHSAA. Athletes under 18 must include a parent/legal guardian as party to the agreement, who must also complete the NFHS course.
Parties cannot make reference to the athlete’s school, school district, athletic conference, the NCHSAA or NFHS during NIL activities, nor use any intellectual property (name, uniform, mascot, logo, etc.) thereof. Athletes cannot take part in NIL activities, nor wear any non-school-issued apparel branded by their NIL partners, during school-related events. They also cannot enter deals involving:
- Adult establishments or entertainment
- Alcohol
- Tobacco, cannabis, or vaping-related products
- Other controlled substances, including opioids or prescription pharmaceuticals
- Weapons or ammunition
- Casinos or gambling
- Activities that would disrupt the operations of the school or school district
In addition to restrictions on athletes, the new rules also prevent coaches, athletic directors, school employees, athletic booster clubs or business representatives from promising NIL deals to recruit an athlete to a specific school or sport, or facilitating NIL deals between an athlete and a third party.
Upon receiving a copy of a student’s NIL agreement, athletic directors must report the deal to the NCHSAA within 30 days. Any changes to such agreements must also be reported. The NCHSAA must keep records of all NIL agreements as part of an annual report to the State Board of Education.