Maryland becomes 24th state to allow NIL on high school level

Maryland has joined the ever-growing list of states allowing high school student-athletes to participate in NIL activities without losing eligibility.

Last week, the Pennsylvania Interscholastic Athletic Association passed an amendment allowing NIL deals for high school athletes. Then a day later, the Tennessee Secondary School Athletic Association did the same thing. On Tuesday, the Maryland Public Secondary Schools Athletic Association officially became the 24^th organization to permit high school athletes to monetize their NIL and maintain their eligibility.

The policy in Maryland mirrors many of the states that have made changes to their handbooks and guidelines in 2022.

Under the new policy, it is permissible for student-athletes to financially gain from the use of their own NIL in commercial endorsements, promotional activities, social media presence, product or service advertisements or NFTs. Much like in other states, student-athletes must keep their NIL activities and participation in interscholastic activities separate.

However, there are a few noticeable differences with the new MPSSAA policy.

For example, the guidance prohibits high school student-athletes from doing NIL deals to promote video games. Plus, the MPSSAA becomes the first state association to outright prohibit the formation of collectives – groups of boosters that support schools through NIL activities – by employees, contractors and vendors of member schools.

Maryland NIL prohibitions catch experts’ attention

NIL experts said the differences in the Maryland policy were definitely eye-opening.

“The video game prohibition is unique,” said Mit Winter, a sports attorney at Kennyhertz Perry LLC. “That section of the guidance also prohibits deals to promote mobile devices. I’m guessing the high school activity association views them as potentially harmful to the mental health of young people and doesn’t want athletes promoting those things.

“The collective part is also unique. It won’t stop a collective from potentially being formed by a third party. But it will prohibit school employees and volunteers from interacting with a collective. It’s similar to provisions that were originally in some of the state NIL laws but have later been removed.”

Dan Greene, a NIL expert and associate attorney at Newman & Lickstein in Syracuse, N.Y., also noticed the video game exclusion.

“I do not believe this category has been included in any other high school athletic association NIL policies,” Greene said. “Perhaps the MPSSAA included this to be in line with their ‘educational mission.’ But it is probably short-sided as it limits a popular category that athletes enter into for NIL deals.

“Playing video games is very popular amongst teenagers, especially athletes. This is evident by NIL deals between Activision and UCLA quarterback Dorian Thompson-Robinson and Fortnite and Texas quarterback Quinn Ewers. This may also hinder high school athletes in Maryland from engaging in the ever-growing esports and live-streaming industries. That’s where many young people make a lot of money in this day and age.”

Where is NIL allowed for high schoolers?

After the MPSSAA’s decision, there are now 24 high school activity associations across the country that allow their student-athletes to participate in NIL without losing eligibility.

On3 High School NIL Rules

Maryland, Tennessee, Pennsylvania, Rhode Island, the District of Columbia, Oregon, Oklahoma, Colorado, Iowa, Idaho, Louisiana, Maine, Massachusetts, Minnesota, North Dakota, Washington and Utah all changed their bylaws in 2022 to allow NIL on the high school level.

It’s also permissible in Alaska, California, Connecticut, Kansas, Nebraska, New Jersey and New York.

Plus, officials in Nevada and Illinois are also having serious discussions about revising their current NIL regulations on the high school level. The Illinois High School Association member schools began voting last week to decide if the state will join the others that have allowed NIL.

Member schools have until Sunday to vote with the results posted the next day. The IHSA has already given its blessing to at least one deal for a Chicago-area girl’s basketball player without having a policy in place. Even so, there are still plenty of state associations that have yet to make a move toward allowing NIL on the high school level. That’s especially true in football powerhouse states like Florida, Georgia and Texas.