NIL compensation (name, image, and likeness) has grown in popularity for college athletes to receive compensation since their name, image, and likeness are used for monetary gain by the sports industry.

24 states already allow high school athletes to receive NIL compensation and other states are in discussions regarding if high school athletes should receive NIL compensation. 

A new bill filed in the Texas House would extend NIL compensation to high school athletes, 18 years or older. Right now the current Texas law says athletes must wait until they are enrolled in a university before they receive any NIL compensation. 

Texas State Representative Giovanni Capriglione (R-Southlake) has filed HB 1802 for students to receive compensation when their name, image, and likeness are used. The argument Capriglione puts forward is high school athletes that are at least 18 should be able to enter into NIL contracts and make those business decisions for themselves, not being held back by UIL rules.

Capriglione‘s bill has several stipulations that limit who is eligible and the parameters around that eligibility. The bill says eligible students would be in public or private, primary or secondary schools who participate in UIL athletics, are 18 years or older, and are maintaining grades above a 70. High school athletes who fit that criterion would be eligible for NIL compensation. 

If the bill is passed, then the UIL or schools defined in the bill cannot prohibit or prevent eligible students from earning compensation or having professional representation for the use of their name, image, and likeness, when the student is not engaged in UIL activities.

The bill would place responsibility on the UIL to create provisions so that this will not get out of hand. UIL would be charged with not letting compensation, or the promise of compensation, be used to entice students to enroll or transfer to schools under the UIL.

Additionally, the bill states the UIL must prohibit any “compensation in exchange for an endorsement of alcohol, tobacco products, e-cigarettes or any other type of nicotine delivery device, anabolic steroids, sports betting, casino gambling, a firearm the student cannot legally purchase, or a sexually oriented business as defined in Section 243.002, Local Government Code.”

The bill says that the UIL can authorize school districts, schools, and teams to prohibit compensation that would conflict with policies and/or honor codes of the school district, school, and team.

Furthermore, the bill requires that students who are eligible for compensation must receive minimum financial literacy and life skills education.

The bill would prohibit individuals, corporate entities, or organizations from entering into contracts with student-athletes, or prospective student-athletes, with compensation, or possible future of NIL compensation, so as to entice them to enroll in a certain university.