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The NCAA board of directors approved one of the biggest changes in the history of college athletics Wednesday, clearing the way for nearly a half-million athletes to start earning money based on their fame and celebrity without fear of endangering their eligibility or putting their school in jeopardy of violating amateurism rules that have stood for decades.
The decision, expected for months as state after state passed laws intended to render NCAA rules moot on the topic, came on the eve of the market opening Thursday for athletes in a dozen states, including giants like Texas and Florida.
“This is an important day for college athletes since they all are now able to take advantage of name, image and likeness opportunities,” NCAA President Mark Emmert said.
The decision effectively suspends NCAA restrictions on payments to athletes for things such as sponsorship deals, online endorsements and personal appearances. It applies to all three divisions or some 460,000 athletes.
The NCAA also will allow athletes to enter into agreements with agents, though all athletes are expected to keep their school informed of any and all NIL arrangements. The NCAA said schools are responsible “for determining whether those activities are consistent with state law.”
Many Iowa athletes already have shown intentions of profiting off their NIL rights after it becomes legal.
Iowa women’s basketball player Caitlin Clark has contact information for business inquiries on her Instagram profile. Men’s basketball player Jordan Bohannon tweeted on Saturday he will be releasing a J3O apparel line on July 1.
Not far from Iowa, Runza, a Nebraska-based fast food chain, is providing NIL deals to the first 100 college athletes in Nebraska to accept the offer, according to the Omaha World-Herald.
Iowa announced its “FLIGHT” program June 25 to give athletes “the tools and knowledge to build their personal brands” and profit off NIL, according to athletics director Gary Barta.
The department is paying Florida-based INFLCR $10,000 for the first year, with 4.25-percent price increases for the following three years, according to a document obtained by The Gazette through a public records request.
However, Iowa will only have to pay $5,868.06 in the third year and $6,117.46 in the fourth year due to a mistake with INFLCR’s advanced payment plan, according to the contract.
Iowa State put out a bid last week to find a company to provide a “full-service platform for managing student-athlete monetization of their name, image, and likeness.”
Several companies — some estimate more than 100 — have been offering NIL services to athletics departments. INFLCR and Lincoln, Neb.-based Opendorse are two of the companies to provide full-service platforms like what Iowa State is requesting.
The NCAA had hoped to have broad NIL rules in place months ago, but that process bogged down, as did efforts on Capitol Hill to have Congress pass a law addressing the issue. Emmert said the NCAA will continue to push for a federal law to “provide clarity on a national level.”
The NCAA was forced to seek a temporary solution rather than have athletes in some states eligible for compensation while others were not. More than 10 states have laws set to go into effect Thursday that would have undercut or simply declared inert existing NCAA rules regarding NIL earnings.
Without NCAA action, athletes in some states could be making money without putting their college eligibility in jeopardy while their counterparts in other states could be in danger of breaking NCAA rules.
The NCAA’s stopgap measure comes less than two weeks after the U.S. Supreme Court ruled against the association in a case involving education-related benefits. That 9-0 ruling is expected to impact issues related to compensation for athletes.
In a letter to member schools last week, Emmert stressed the high court still puts authority to govern college sports in the hands of the association. However, he warned schools that “existing and new rules are subject to antitrust analysis and we should expect continued litigation, particularly in the area of ‘play for pay.’”
The NCAA said the temporary policy addresses “play for pay” and the continued ban on improper inducements tied to choosing a school.
“The new policy preserves the fact college sports are not pay-for-play,” said Division II Presidents Council chair Sandra Jordan, chancellor at the University of South Carolina-Aiken. “It also reinforces key principles of fairness and integrity across the NCAA and maintains rules prohibiting improper recruiting inducements.”
The Gazette’s John Steppe contributed to this Associated Press story