Michigan could be next state to approve NIL for high school athletes

There are currently 34 high school associations that allow student-athletes to participate in NIL without losing their eligibility. That number could soon climb to 35.

Late last week, the Michigan House passed a bill that would prohibit schools and athletic associations from blocking students from participating in NIL activities.

The bill, introduced by Rep. Jimmie Wilson, easily passed in the House largely because lawmakers worked with the Michigan High School Athletic Association to develop a bill that would support students and make high school administrators happy.

“Representative Wilson was very receptive to our ideas and what we felt most strongly about, in terms of what would be workable in the framework of high school athletics and what would not be,” Geoff Kimmerly, the Communications Director for the MHSAA told Fox 17 in Grand Rapids.

Michigan guidelines similar to other state’s rules

According to the bill, it would bar boosters or alumni groups from pooling money to form a collective to provide entire teams with NIL deals or to draw students to a certain high school. The bill also requires parental consent and the disclosure and recording of all deals with the MHSAA to track the implementation of the law better.

Plus, the legislation prohibits students from entering NIL deals requiring them to wear or promote a specific sponsor or item during official team activities. It also would bar certain contracts, such as ones with alcohol or adult entertainment companies. High schools could also “identify or assist” with potential NIL deals under the bill, but the school or school representative could not serve as an agent or receive compensation related to the deal.

“If a high school athlete gains recognition for their outstanding talent, they should have the opportunity to get compensated from that popularity,” Wilson told Fox 2 in Detroit. “It doesn’t come easy, and it sure is earned. I am happy I could spearhead my bill, and I am hopeful for its progression in the Senate.”

Many of those guidelines mirror policies in place with other high school associations across the country. But nonetheless, it’s interesting that lawmakers collaborated with the local high school association to formulate the bill.

The legislation moves to the Senate, but multiple sources told On3 there is no timetable for a vote in that chamber.

Who could benefit in Michigan?

Michigan is one of the top talent-producing states in both football and basketball in the country.

And a move to allow NIL in Michigan could be big for top recruits. Leaders with the MHSAA said in committee testimony that the legislation would impact about 25 of the state’s 180,000 high school athletes. But still, leaders saw the need to allow it.

For example, four-star Notre Dame quarterback commit CJ Carr – grandson of legendary Michigan coach Lloyd Carr – is currently not able to build off his brand. He has more than 27,000 followers on social media and an On3 NIL Valuation of $399,000. There are five football recruits in the 2024 class with an On3 NIL Valuation of more than $60,000.

While the bill might not impact Carr and others in the 2024 class, it could be beneficial for 2025 Five-Star Plus+ quarterback Bryce Underwood of Belleville, Michigan. Underwood is the No. 1 recruit overall in the entire country. Plus, he has a social media presence of more than 46,000 followers. Underwood has 39,000 followers on Instagram alone and an On3 NIL Valuation of $441,000.

Outside of agreements with NIL collectives, social media posts have become the leading activity for athletes. Boasting a large following across Instagram and TikTok, specifically, can make all the difference in compensation.

“Much like Julian Lewis, there’s little doubt Bryce could land himself a six-figure deal during his senior year in high school,” an NIL agent who asked not to be named told On3. “When you’re the No. 1 recruit and the top prospect to come out of a state in a long, long time and you have a good social game, brands will want to work with you.”

Along with Michigan, Indiana, Ohio and Wisconsin remain the only Midwest states without regulations that allow students to engage in NIL and still play high school sports.