North Carolina private high school athletes can soon begin to profit from NIL deals

NIL soon will be acceptable at the high school level in another top-talent-producing state.

Sort of.

The North Carolina Independent Schools Athletic Association announced late last week changes to its handbook for the 2024-2025 school year. As part of the changes, NCISAA student-athletes will be able to profit from their name, image and likeness while still maintaining eligibility to play prep sports. The NCISAA has around 100 member schools, all non-public institutions throughout North Carolina.

Roughly 34 local athletic associations now allow student-athletes to participate in NIL deals without forfeiting the ability to play high school sports.

The exact number of high school associations that allow NIL is still somewhat hazy because of limitations with some activities and pending state legislation. Nonetheless, there’s been a significant shift over the past 18 months in how high school administrators view NIL. It’s now allowed for high school athletes in a majority of states from coast to coast.

Yet, there are still 17 state associations – including the North Carolina High School Athletic Association which makes up public schools in the state – where NIL is not allowed if players want to participate in prep sports. But that’s not the case with non-public schools in North Carolina.

“I applaud our leadership and association for engaging in conversations about policies affecting our student-athletes,” NCISAA Executive Director Homar Ramirez said in a news release.

“After careful consideration, it was decided to adopt an NIL policy after watching the impact that NIL has had in college athletics. 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.”

What is NCISAA’s NIL policy?

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.”

The NCISAA’s policy specifically includes:

• Student-athletes must keep their NIL activities and participation in interscholastic athletics separate.
• No collectives.
• Member schools cannot offer, secure or participate in NIL deals.
• “Limited permissible activities” that prohibit adult entertainment, controlled substances, gambling, alcohol and smoking.
• All NIL deals must be reported to and approved by the NCISAA state office.

Many coaches throughout the state – both public and private schools – are still digesting the news from last week. 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.

Where is NIL allowed on the high school level?

While it doesn’t have the same amount of talent annually as nearby Georgia and Florida, North Carolina is still one of the most heavily recruited states in the country in both football and basketball.

The Class of 2025 in North Carolina features five-star offensive lineman David Sanders and seven four-star football recruits. Sanders, because he attends Providence Day School, will be allowed to participate in NIL deals next school year. But all of the other top 2025 football recruits attend public schools. The 2025 basketball recruiting class in North Carolina is highlighted by four four-star recruits, including No. 26 overall AJ White at public school Myers Park.

North Carolina epicenter of NIL HS debate

There is a reason for public school coaches in North Carolina to be concerned. There’s already a long, long list of top players – both boys and girl stars – that have transferred to schools or states when NIL is allowed.

For the longest time, it appeared the North Carolina High School Athletic Association was well on its way to joining the other state associations where NIL is acceptable.

In May 2023, the NCHSAA approved a policy change that mirrored much of what was approved by other state associations across the country. The policy change would have taken effect on July 1, 2023. However, it was never enacted because an amendment to NC Senate Bill 636 relating to student amateur status requirements was passed with rules relating to NIL being included.

The amendment stripped away much of the NCHSAA’s authority and placed it with the State Board of Education and State Superintendent of Public Instruction.

And since then it has remained not legal for public school athletes to make money off NIL. Plus, there appears to be no movement on the subject since.