STATEMENT OF POLICY

 

Effective July 1, 2021, Drexel University (“University”) Student-Athletes may receive compensation from third parties (but NOT from the University) for use of their Name, Image and Likeness (NIL) in endorsements and business activities.

 

  1. Compensation for Services: Student-Athletes may receive Compensation for NIL Activity subject to the NCAA Bylaws, applicable law and this Policy. 

NIL Activity includes, but is not limited to, use of NIL to promote a Student-Athlete’s own business, to endorse a corporate entity (e.g., serve as a brand ambassador or social media influencer), conduct camps, lessons or clinics, make appearances, or sign autographs.Student-Athletes who are unsure of whether a particular activity may fall under this policy should consult with Drexel Athletics Compliance Office prior to entering any agreement related to NIL Activity.

Permitted Compensation from a third party (but not from the University) for NIL Activity is limited to Compensation that is:

  1. Provided in exchange for services, activities, intellectual property, appearances, or other value actually provided by the Student-Athlete;
  2. NOT provided in exchange for athletic performance or specific athletic achievement (e.g., conditioned on the individual or the team’s place, finish, performance or awards); and
  3. Commensurate with the market value of the Student-Athlete’s NIL.

Compensation that does not meet these requirements, such as compensation provided in exchange for athletic performance, is not permitted and could lead to a determination of ineligibility to participate in college athletics.

The University, including its employees, contractors, representatives and agents, may not provide or arrange third-party Compensation for a Student-Athlete related to NIL Activity.

 

  1. Royalty Payments: A person that produces a college team jersey, a college team video game, or college team trading cards for the purpose of making a profit shall make a royalty payment to each Student-Athlete whose NIL or other individually identifiable feature is used, as required by Pennsylvania Law and to the University for the use of any intellectual property owned by the University.
  1. Disclosure: In compliance with Pennsylvania law, any Student-Athlete who proposes to enter into a contract providing compensation for NIL Activity must disclose the contract to Drexel Athletics Compliance at least seven days before signing the contract. Disclosures must be reported using the Name, Image and Likeness Disclosure Form. The purpose for disclosure requirements is for the Drexel Athletics Compliance Office to monitor compliance with NCAA rules and University policies. It is not an approval process.
  1. Conflict With University Contracts: Student-Athletes may engage in NIL Activity with sponsors of the University or entities that compete with sponsors of the University; provided, however, such NIL Activity may not conflict with the provisions of any agreement to which the University is a party.  The University will review the Name, Image and Likeness Disclosure Form and notify the Student-Athlete if the proposed NIL Activity presents a conflict with any existing agreements of the University.  Any further revision to the proposed NIL Activity agreement must be disclosed and will be subject to further review by the University.
  1. Professional Representation (Agents and Lawyers): Student-Athletes may use the services of Professional Representatives for assistance with contracts or legal matters related to NIL Activity.

 

Professional Representatives who represent a Student Athlete must be one of the following: (1) an Athlete Agent representing Student-Athletes in accordance with 5 Pa.C.S. Chapter 33 (relating to registration); (2) an individual serving as a financial advisor for a Student-Athlete in accordance with Pennsylvania law; or (3) a lawyer admitted to practice law by a Pennsylvania court of record; and must NOT have represented an institution of higher education in the previous four years.

 

Use of Athlete Agents must be consistent with current NCAA Bylaws, including the prohibition on use of agents for future professional athletics contract negotiations, and Pennsylvania law.

 

To avoid conflicts of interest, University faculty, staff, and other representatives cannot serve as Professional Representatives and cannot pay for, provide or facilitate a Professional Representative relationship with any Student-Athlete.However, University faculty and staff are permitted to provide education to Student-Athletes on NIL Activities.

 

 

  1. Prohibited NIL Activities:

      a) Banned Industries: Student-Athletes are prohibited from earning Compensation for NIL Activities in connection with a person, company or organization related to or associated with any of the following:

  1. Adult entertainment products and services;
  2. Alcohol products;
  3. Casinos and gambling, including sports betting, the lottery and betting in connection with video games, online games and mobile devices;
  4. Tobacco and electronic smoking products and devices;
  5. Prescription pharmaceuticals; or
  6. A controlled dangerous substance.
  7. Any substance banned by the NCAA
  8. Products or services that are illegal
  9. Advertising that contains language, pictures or graphic representations that are (a) unsuitable to exposure to minors, or (b) derogatory or defamatory of any person or group because of race, color, national origin, ethnic background, age, disability, ancestry, marital or parental status, military discharge status, source of income, religion, gender or sexual orientation.

 

    b) Official Team Activities.  NIL Activities may not take place during Official Team Activities and no Official Team Activities may be missed as a result of participation in NIL Activities.

 

    c) Academic Attendance.  A Student-Athlete may not miss class or academic meetings to participate in NIL Activities.

 

  1. Use of Institution Name or Marks:

Student-athletes at the University may state that they play “[insert name of sport] at Drexel University” or that they are “a member of the [insert name of sport] at Drexel University” to identify themselves in connection with any NIL Activity.Student-Athletes may use digital content owned by the University and may use digital content created and owned by a University vendor (e.g., professional photographer) subject to any applicable license restricting such use. Student-Athletes are advised to confirm ownership of such digital content with Athletics External Relations Office prior to use.

For use of the Athletic Department or University’s name in any other manner, or the use of any logo, marks, or other intellectual property owned by the University in connection with noninstitutional NIL Activity, including all aspects of the uniform, mascot, unique colors and other defining insignia, Student-Athletes must receive prior written approval from the Athletics Compliance Office and Athletics External Relations Office.All use must comply with the Use of the Drexel Name and Insignia Policy.

 

  1. University Role Related to NIL Activity.  The University, including faculty and professional staff, MAY:

    a) Educate Student-Athletes on NIL Activity, including but not limited to topics regarding rules and risks, how to engage in NIL Activity, and how to build one’s personal brand.

    b) Allow Student-Athletes to access or use University facilities for NIL Activity under the same rules, regulations and fees in effect for any third-party user requesting comparable access or use (e.g., use of athletic facilities for lessons, on-campus filming by a third party camera crew). Student-Athletes should contact the Athletic Department Facilities Office for additional information and will be required to pay all rental fees, provide proof of insurance and sign a Facility Use Agreement prior to any such use.

    c) Purchase a Student-Athlete’s work product or service if such purchase is permissible under the University’s Conflict of Interest and Commitment Policy.

    d) Provide support to Student-Athletes that would be provided to any other student, such as faculty mentoring.

  1. Recruiting Inducements Prohibited: Student-Athletes and prospective Student-Athletes may not receive the promise of any NIL Activity or Compensation related thereto in exchange, in whole or in part, as an inducement to attend, participate, or perform at the University. Prospective Student-Athletes and transfer Student-Athletes will be required to disclose NIL Activity to University Athletics Compliance upon request prior to enrollment at the University.
  2. Reserved Rights: The University reserves the right to use a Student-Athlete’s NIL to the extent and in the form determined in the University’s sole discretion, at any time for its advertising and marketing related to the University’s athletic, academic, promotional and historical interests in accordance with NCAA ByLaws. Any provision in a contract between a Student-Athlete and a third-party or Professional Representative in conflict with this provision is null and void.  Student-Athletes will continue to participate in University promotional activities such as appearances, autograph signings, digital content creation, photo shoots, and similar activities in accordance with existing NCAA rules without compensation.
  3. Sale of University Provided Apparel or Tangible Goods: Student-athletes may autograph and sell officially licensed memorabilia that includes University marks provided that, per NCAA regulations, student-athletes may not sell awards received for intercollegiate athletic participation or products provided by Drexel Athletics while they are a student-athlete. 
  4. International Student-Athletes: International Student-Athletes may be limited in their ability to receive Compensation for NIL Activity by the terms of their visa or other immigration status. International Student-Athletes must contact the University’s Office of International Students and Scholar Services prior to entering into any NIL agreements and are advised to seek legal counsel for additional information on the impact, if any, on the impact of their status as a student in the United States.
  5. Equity: The University is committed to equity in the provision of all permissible University services under this policy. Student-Athletes are entitled to Compensation for NIL Activities only from non-institutional entities and not from the University.  The University is not responsible for monitoring, overseeing or enforcing compliance or equity for NIL Activity opportunities and Compensation provided by non-institutional entities.
  6. Scholarship Status.  Compensation for NIL Activity will not affect a Student-Athlete’s scholarship eligibility, duration or renewal.  An athletics grant-in-aid or stipend scholarship will not be revoked or reduced as a result of a Student-Athlete earning Compensation unless otherwise mandated by Federal or State student aid guidelines.
  7. Employment Status: Student-Athletes are not considered employees of the University of based solely on their status as Student-Athletes. A Student-Athlete’s receipt of NIL compensation from a noninstitutional entity, receipt of athletics financial aid, a signed National Letter of Intent or scholarship agreement with the University do not give the Student-Athlete employee status.
  8. Withholding, Tax & Other Obligations: Student-Athletes are responsible for all tax, withholding, reporting, licenses, permissions, permits, expenses, fees and any other obligations, liabilities or costs associated with NIL Activity.  Student-Athletes should be aware that Pell Grants and other noninstitutional need-based financial aid could be impacted by compensation resulting from NIL Activities.
  9. Disclaimer: The University shall have no liability to any Student-Athlete, noninstitutional entity, professional service provider, vendor, contractor, or agent as a result of a Student-Athlete’s participation in NIL Activities. The University hereby expressly disclaims any liability, responsibility, warranty or guarantee to any party in connection with any NIL Activity.  Student-Athletes are not authorized to act as agents or representatives of the University, and no commitments, representations, or obligations made by Student-Athletes will be valid, enforceable or binding with respect to the University or any University employees, representatives, contractors or agents.
  10. Violation of this Policy/Enforcement.  Violations of this policy may result in appropriate disciplinary measures in accordance with state law, federal law, University policies, procedures and/or codes of conduct and may result in NCAA sanctions up to and including permanent ineligibility to participate in college athletics. In addition, violations of this policy by Student-Athletes may result in cancellation of athletics financial aid if a Student Athlete is deemed ineligible to participate in competition. 

 

      Faculty, staff and other University representatives who violate this policy will be subject to disciplinary action in accordance with applicable University procedures. Independent contractors will be deemed to have committed material breach and any existing or pending contract(s) will be subject to termination by the University.

 

SCOPE

This policy applies to all NIL Activities of Student-Athletes and impacts Student-Athletes and all University trustees, officers and employees.

 

KEYWORDS AND DEFINITIONS

  1. Athlete Agent: Any individual who enters into a contract that empowers such individual to negotiate or solicit on behalf of a Student Athlete one or more agreements for NIL Activities. 

     
  2. Compensation: Remuneration or payment in any form received for work or services performed, including cash, credit, cryptocurrency, product, goods, services, in kind contributions or other items of value or benefit.

     
  3. Name, Image and Likeness (NIL): A personal right of publicity where permission is required of a person to use their name, image (e.g., a picture or video) or likeness (e.g., a cartoon, avatar or sculpture).

     
  4. NIL Activity:  Any non-institutional activity that involves the use of a Prospective Student-Athlete’s NIL or Student-Athlete’s NIL for commercial or promotional purposes, regardless of whether such use is compensated or uncompensated. 

     
  5. Official Team Activities.  Activities deemed by NCAA Bylaws to be Countable Athletically Related Activities (NCAA Bylaw 17.02.1) or Required Athletically Related Activities (NCAA Bylaw 17.02.14), including, without limitation, team practices, games (including scrimmages and exhibitions), travel to and from away competitions, required team meetings, team promotional photograph sessions, community service and media interviews.

     
  6. Professional Representative: A person providing professional representation in relation to contracts or legal matters, including NIL Activity, who is an Athlete Agent, financial advisor or attorney as more fully defined in Section 5 of this Policy. 

     
  7. Prospective Student-Athlete: A prospective Student-Athlete is a student who has started classes for the ninth grade.

     
  8. Student Athlete.  An individual enrolled at Drexel University who participates in intercollegiate athletics. The term does not include an individual whose participation is or was in a college intramural sport, college club sport or in a professional sport outside of intercollegiate athletics.

 

 

RELATED INFORMATION

Pennsylvania 2021 Act No. 26 Article XX-K approved by the Governor June 30, 2021

Use of the Drexel Name and Insignia Policy

Conflict of Interest and Commitment Policy

Intellectual Property Policy

 

APPENDIX: RELATED DOCUMENTS, FORMS AND RESOURCES

Name, Image and Likeness Disclosure Form

NCAA Uniform Interim Policy on Name, Image and Likeness adopted on June 30, 2021

Colonial Athletic Association Policy on Name, Image and Likeness adopted July 1, 2021