Iowa becomes 15th state to green light NIL for high schoolers

Iowa has become the 15th state to allow high school student-athletes to monetize their NIL.

The IHSAA released its handbook for the 2022-23 academic year on Wednesday, outlining updating guidance on Name, Image and Likeness. Student-athletes are now able to turn a profit as long as they stay contingent with IHSAA regulations.

Deals contingent on athletic performance, recruiting incentives or an athletic department’s booster club are prohibited. Schools are allowed to give out player of the game awards, provided the award does not exceed $50 in value.

Athletes are also prohibited from using or wearing IHSAA or member school marks, logos or apparel in NIL activity. The state guidance also directs athletes and their families to seek their own legal counsel and tax advice when making NIL decisions.

Student-athletes are prohibited from striking deals with “sin industries” which include gambling, alcoholic beverage companies, banned substances, tobacco products, adult entertainment and firearms. The Hawkeye State joins Connecticut and Kansas as the only state to outline specific banned products and services.

Iowa high school athletes should benefit

The state of Iowa might not have the most talent per capita in the U.S., but the state has sent 12 athletes to the NFL Draft in the last five years.

Iowa commit and 2023 offensive tackle Kadyn Proctor holds an On3 NIL Valuation of $262k, which ranks in the top 25 of all high school football NIL valuations. And since he opted to stay in-state to play college football, he can get a jumpstart on building his NIL brand. A five-star per the On3 Consensus, he’s the top-ranked player out of Iowa and a top-10 prospect in the 2023 class.

The same can go for Iowa State quarterback commit JJ Kohl, who has an evaluation of $88,000. The four-star recruit was named On3’s Elite 11 MVP and his stock has continued to grow. Even though he has committed to the Cyclones, Auburn is getting aggressive with an offer earlier this month. The 6-foot-6, 230-pound quarterback has earned early comparisons to former Oklahoma star Sam Bradford.

Football is not the only sport that is producing NIL potential. Five-star Iowa State commit Omaha Biliew holds a valuation of $461,000, which ranks in the top 15 NIL evaluations of high school basketball players. The 6-foot-8, 215-pound big man is a physical presence and also received interest from the G-League Ignite.

The On3 NIL Valuation is the industry’s leading index that sets the standard market NIL value for high school and college athletes. Using a proprietary algorithm, the On3 NIL Valuation utilizes data regarding an athlete’s performance, influence and exposure. An athlete’s On3 NIL Valuation doesn’t act as a tracker of the value of the NIL deals an athlete has completed to date. Instead, it calculates an athlete’s relative value in the market and projects the value as long as 12 months into the future.

Where is NIL allowed for high school student-athletes?

Most high school associations – including Texas, Florida and Georgia – have prohibited student-athletes from participating in NIL. Currently, only Alaska, California, Colorado, Connecticut,   Idaho, Kansas, Louisiana, Maine, Minnesota, Nebraska, New Jersey, New York, North Dakota and Utah allow high school student-athletes to participate in NIL in high school and still play high school sports.

But in the group that allows it, state high school athletic associations in Colorado, Idaho, Louisiana, Maine, Minnesota, North Dakota and Utah changed their bylaws in 2022. That signals to some NIL experts that there’s momentum toward loosening the restrictions.

That’s especially true when you consider that a football powerhouse state like Pennsylvania appears on track to allow its student-athletes to engage in NIL initiatives. In mid-July, the Pennsylvania Interscholastic Athletic Association approved on first reading a policy to allow student-athletes to profit off NIL.

“We really need to probably get ahead of this and address it and put some parameters in place to guide students and their families so that they’re educated, and they know what they’re getting into,” PIAA Assistant Executive Director Melissa Mertz said.

But not every state is moving toward acceptance of NIL.

In May, administrators in Ohio voted – in a 538-254 margin – against allowing student-athletes to be involved in NIL activities and still maintain their high school eligibility. Plus, Mississippi High School Activities Association executive director Rickey Neaves told The Star-Herald last week that the MHSAA will not alter its eligibility rules to allow high school student-athletes in the state to participate in NIL activities. Many other Southeastern states still have not moved on NIL changes at the high school level.