Rosen Harwood Blog

Alabama House Bill Proposes to Allow High School Athletes to Enter into NIL Contracts

In December 2023, Alabama Representative Jeremy Gray introduced House Bill 25, which proposes to allow high school athletes to receive compensation for name, image, and likeness. As currently written, any student could receive compensation; however, there are some restrictions.

  • Compensation cannot be “contingent on specific athletic performance or achievement”, used as an enrollment incentive, or provided by the school or a school’s agent.
  • Student Athletes may not use, wear, or endorse a school’s logo, name, mascot, or acronym; school apparel; equipment; or facility.
  • Student Athletes cannot endorse any activities in conflict with school’s policies (i.e. tobacco, alcohol).
  • Student and student’s parent or legal guardian must “receive professional guidance as to the impact and consequences of receiving compensation.”
  • Student or student’s legal guardian must notify the principal or athletic director of intention to enter into an NIL contract at least seven days prior to entering.

The proposed effective date of this act, if passed, is October 1, 2024.

This legislation would allow Alabama to join at least 30 other states that already allow high school athletes to profit from their name, image, and likeness. Some of the few remaining holdout states include Mississippi, Kentucky, South Carolina, and Florida. However, this list is changing rapidly. Several states introduced legislation on this topic in 2023, including Georgia and Michigan. Most of the remaining states are, at a minimum, discussing the amendment of their current laws.

Lawmakers are concerned if Alabama does not pass this legislation, the state will lose some of its current top athletes to other states.

It is important to note the “professional guidance” requirement. Requiring high school athletes to obtain professional guidance will enable them to make more informed decisions about whether and when to enter into NIL agreements and with what provisions.

If you have any questions on your specific situation or any other intellectual property related matters, please do not hesitate to call or send me an email.

Chandler N. Williams

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