North Carolina Board of Education approves ban on NIL for public high school athletes

NIL won’t be coming to public high schools in North Carolina any time soon.

In minutes posted by the North Carolina Board of Education from its June 5-6 meetings, it was revealed the board approved policy language that prohibits NIL activities for student-athletes who want to play sports at a public high school.

The new policy from the board says:

“No student participating in interscholastic athletics shall enter into any agreement to use the student’s name, image, or likeness in any of the following ways:

(1) Public appearances or commercials.
(2) Autograph signings.
(3) Athletic camps and clinics.
(4) Sale of non-fungible tokens (“NFTs”).
(5) Product or service endorsements.
(6) Promotional activities, including in-person events and social media advertisements.”

The rule is in place for 2024-2025. Currently, 37 local athletic associations allow student-athletes to participate in NIL deals without forfeiting the ability to play high school sports. Yet, there are still 13 state associations or governing bodies – including a handful in some of the country’s top talent-producing regions like North Carolina – where NIL is not allowed if players want to participate in high school sports.

NIL debate has raged in NC for months

North Carolina has become ground zero for one of the biggest battles over whether NIL should be allowed on the high school level.

That’s largely because of an internal battle between the North Carolina High School Athletic Association and state lawmakers.

Last May, the NCHSAA Board of Directors approved a proposal that would’ve brought NIL rights to North Carolina public high school student-athletes starting on July 1, 2023. However, North Carolina politicians shut the measure down barely a day later with legislation that also eventually stripped the state association of much of its power and threatened its very existence.

Where is NIL prohibited for high school athletes?

In February, State Senator Vickie Sawyer told the Charlotte Observer that the North Carolina Board of Education plans to propose NIL rules for public school athletes to the state’s Rules Review Commission. Those rules ended up being the outright prohibition policy that was rubberstamped last week.

NIL deals allowed by NC private schools

Complicating the situation in North Carolina is the fact that the North Carolina Independent Schools Athletic Association announced changes to its handbook for the 2024-2025 school year. As part of the changes, NCISAA student-athletes can profit from their NIL while still maintaining eligibility. The NCISAA has around 100 member schools, all non-public institutions throughout North Carolina.

“After careful consideration, it was decided to adopt an NIL policy after watching the impact that NIL has had in college athletics,” NCISAA executive director Homar Ramirez said in a news release. “This policy provides the necessary protection for our student-athletes, families and our member schools. We recognize that the sports world is changing and will continue to assess best practices for our schools.”

Under the new rules, student-athletes at North Carolina private schools can “retain athletic eligibility under NCISAA regulations and engage in NIL activities for financial gain, provided the student’s NIL activities and participation in interscholastic athletics remain separate.”

Coaches throughout the state – both public and private schools – are still digesting the news months later. But several coaches, especially in basketball, told On3 that this move gives private schools in the state a “significant advantage” and top-ranked players could transfer so they could take advantage of NIL activities.

“While I think the state Board of Education and other government supporters may think they’re protecting public high school athletes in North Carolina, they’re actually doing the opposite,” Dan Greene, a NIL expert and associate attorney at Newman & Lickstein, told On3.

“By continuing to prohibit NIL they are restricting these athletes’ right of publicity and the ability to potentially earn life-changing money for their families. Some may argue that these athletes can just transfer to a private school within the state or to another school within a state that permits NIL, but that may not be feasible for them for numerous financial, family, social, and other reasons.

“We’re at the point where the supermajority of state high school athletic associations permit NIL and the North Carolina Board of Education and others like Sen. Sawyer have had plenty of time to understand and learn that high school NIL isn’t as ‘Wild West’ as they may think it is and create a fair and reasonable policy to permit NIL while still protecting its athletes.”

Please read this article. I currently attend a public school in NC and I really hope this law changes for me and other athletes that attend public schools in NC! https://t.co/DjnUDcUmnd

— Faizon Brandon (@faizon_brandon) June 6, 2024

Parents frustrated by NIL policy in North Carolina

There are also other vocal critics of the policy limiting public school athletes in North Carolina. One of those detractors is former All-American safety at Georgia turned NFL All-Pro linebacker Thomas Davis. His son, Thomas Davis Jr., is a top recruit in the Class of 2026 from Weddington High School – a public high school impacted by the policy from the board. 

Before the board finalized its policy, Davis told On3’s Pete Nakos that “it’s unfair, and the way that they’ve handled it is wrong.”

“I just think that if you’re going to allow it for one particular set of kids, then it shouldn’t be allowed for all of them,” Davis said. “And if it isn’t going to be allowed for everyone, then nobody shouldn’t be able to do it. I think we have enough states that have got on board with the whole NIL structure at the high school level, and they’ve done it the right way. They opened it up for all the kids, and they didn’t make it biased to one particular group. That’s the same formula North Carolina should follow in order to keep things fair.”

Another parent said public school students are being punished.

“We’re being penalized because our children are going through public schools, and we can’t afford to put them in a private school,” the parent of a North Carolina 2026 athlete who wished to stay anonymous told On3. “But he’s thriving. And he’s bringing so much public attention to the state of North Carolina. Why is he not able to capitalize on all his hard work?”