Short version: US College Sports: NIL deals for foreign student athletes

The National Collegiate Athletic Association (NCAA) in the United States (US) is no longer a purely amateur pursuit for student athletes. In a dramatic change, the NCAA announced that athletes can earn from the promotion of ‘name, image, likeness’ (NIL) deals. The abruptness of the change from amateur status athletics to being able to earn from NIL deals was stark. It was chaotic. An industry sprang up overnight. Whilst athletes can earn, there is also the ability to pay agents, managers, NIL deal companies, advisers and the hangers on. There is a lot to manage for the unwary.

For the foreign athlete looking at college opportunities, there are additional matters to think about. Firstly, can a foreign athlete also benefit from NIL deals? Yes and no. The answer is not straight forward. Secondly, are the rules consistent across the country? Unfortunately, no. This article will focus on what the NIL opportunity brings and what foreign athletes need to consider. The considerations are complex. Athletes need to assess a web of rules and practices with federal and state legislation, sports commissions, college rules and the potential conflicts between them.

For the foreign student athlete, which college, which conference and which State matters a lot. The foreign student athlete needs to think about:

The possible visa options to enter, remain, study and possibly work in the US?

Taxation – where is the place of earning?

The State legislation - what earnings are allowed and what is not? What type of deals are prohibited?

The college – what contracts are allowed and what is not? Can the intellectual property of the college be used by the student athlete in any NIL deal?

The Conference – any imposed restrictions?

The sport – any imposed restrictions from governing bodies?

With NIL deals, foreign student athletes have the ability to fund and survive in the US. This is an important aspect. Living hardship can take a toll on sports performance. If there is an ability to remove hardship from the sports performance equation, then the decision on the target college becomes all too important.

NIL deals have created revenue opportunities for foreign student athletes. However, access to those deals is a complex path of evaluating State, college, sport and conference rules. Once the situation is determined if and what NIL opportunity is possible, then there needs to be careful consideration of the immigration and taxation rules. All actions by the foreign student athlete should be taken with advice. The consequences for a breach of immigration rules can mean expulsion and long-term problems including being prohibited from entering the US in the future to compete. The risks cannot be overstated but with careful planning and management a foreign student can have some participation in NIL deal activities.

July 2023

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