In late December, the New Hampshire Interscholastic Athletic Association (NHIAA) adjusted its rulebook to allow high school athletes to be able to capitalize off of their name, image and likeness (NIL) without losing their athletic eligibility. University of New Hampshire law professor and NIL expert Michael McCann recently addressed some common questions and concerns expressed about NIL with the Monitor.
Answers have been edited and condensed. To hear the full conversation, check out last weekโs episode of the Monitor Sports Podcast.
Concord Monitor: Why is this significant that this is happening for New Hampshire high schools?
Michael McCann: For a long time, athletes at the amateur level had not been able to sign endorsement deals or be paid and sponsored under the concept of โamateurism.โ Because an athlete is an amateur, he or she shouldnโt receive any sort of compensation. For a long time, thatโs been a source of controversy because their classmates could be paid for doing other things related to their identity.
Thereโs also a right we all have as Americans called the right of publicity, which is basically the right that says people have to pay us to use our identity โ more specifically, our name, our image, our likeness, if we have a famous signature or famous voice. So itโs sort of inherent as Americans that we should be paid for who we are.
At the youth level, athletes have not been able to be paid, or they lose their eligibility. And that has long been the general rule among the 50 states. But unlike with college sports where thereโs the NCAA, high school sports are more state-specific, and state athletic associations decide on their own. And New Hampshire has now joined the group of states that are letting athletes do deals.
CM: This isnโt specific with the NHIAAโs guidelines, but Iโve seen other states that have allowed high school athletes to capitalize on their NIL where they specify that the athleteโs skill level canโt be taken into consideration when these deals are determined. What is the purpose behind that?
McCann: The purpose behind that is in part to prevent whatโs called pay-for-play, the idea that the athlete is being paid to join a particular school or stay at that school in exchange for compensation; itโs not their name, image and likeness, theyโre actually being paid for their service, their labor, if you will. In that context, the idea is to ensure that none of that is happening, at least under amateurism rules. Now, some could argue that that should be allowed too, but thatโs a separate issue. That is one way of trying to mitigate that concern.
CM: One of the things you hear a lot, and this is more specific to the college level, is, โWell, the athletes are getting a free education at whatever university they go to; why should they be allowed to make more money?โ What is your response when you hear that?
McCann: Well, theyโre getting a free education, but why would that preclude them from being paid by a sponsor? I feel like theyโre sort of unrelated. If a local pizzeria wants to pay an athlete because sheโs excellent at her sport and she has some local name recognition, the fact that sheโs also not paying tuition, I donโt feel like those two are connected points to me. I feel like theyโre really separate. Because again, the payer is not the school, itโs some third party.
And also, I think itโs worth noting, most college athletes on scholarships are not getting full rides. Thatโs the aspiration for many parents, but often the scholarships are nowhere near a full ride. Plus, there are other things that tuition doesnโt cover. Thereโs all sorts of ways in which the hypothetical of โtheyโre already getting a free educationโ either isnโt factually true in its entirety, or even if itโs true, to me, thatโs a separate point from whether that athlete can also be paid as other Americans for the use of their identity by third parties.
CM: Bringing it back to New Hampshire high schools, there are some challenges that could arise with this implementation, particularly you could have 14- to 18-year-old kids trying to negotiate deals, and there are chances for something to go wrong. Whatโre some of those issues that you could see arising, and how would those be addressed?
McCann: This is not new. There are child actors who are much younger than 14 that are paid for their celebrity. Musicians as well. This is not new to the American economy, that there are young people who are exceptional that can be paid to reflect what makes them exceptional.
I think one challenge is that, in many cases, theyโre going to be paid small amounts, if anything. And because of that, itโs difficult to justify hiring a lawyer; in some cases, theyโll be paid less than what a lawyer would charge for an hourly rate.
And also, what is expected of the athlete? Do they understand at 15 what theyโre signing? Do their parents understand it? A parent might not understand contracts that have all sorts of legal terminology and fiduciary obligations that are worded for people that are lawyers.
CM: Most of these deals, if any happen, would be small-value deals. Especially in New Hampshire, youโre not getting high school kids that are getting tens of thousands or millions of dollars. So I think itโs an important point to make that this adjustment by the NHIAA in its rulebook may have some impact; it may have no impact. But in your view, it doesnโt really matter necessarily the impact. Itโs more that this is a right that these athletes should have at their disposal, correct?
McCann: Thatโs exactly as I would put it. This is about a right. This is probably not a right that will have value for the vast, vast majority of high school athletes. The fact is theyโre not marketable. They may be good at a sport, they may be great students, they may be nice people, but they probably donโt have the sort of celebrity power that would command an endorsement. Or, if itโs anything, itโs something really modest: free pizza, 100 bucks, something thatโs not life-altering.
This isnโt about people getting rich. This is really about restoring a right they already had, or at least removing a constraint from that right.
CM: And one of those other opportunities is camps. Maybe a kid now, if theyโre a good football player at Concord High School, they could say, โHey, Iโm doing this football camp,โ and they donโt have to worry about the fact that they could lose their football eligibility.
McCann: Thatโs right. That really gets at the idea of why this could be pro-educational, that it can create opportunities for older kids โ and by older kids I mean teenagers, 14 to 18 โ who will paid a little bit to sponsor a camp, so theyโre more likely to do it over the summer, make a little money and they could teach younger kids how to play a sport and how to play it well. That, to me, is a good thing for the state, if thatโs the setup.
We all know, with name, image and likeness, I think national media sometimes covers it as this is about making young athletes millionaires, but that is not the case in 99.9% of situations. Itโs really what you just said: Throw some money at the high school junior whoโs really good at his sport to sponsor the camp, and they can teach younger kids how to play. To me, that shouldnโt be controversial. That actually seems like a common-sense thing that should be allowed.
