NC Senate votes to block NIL deals for high school athletes, weaken power of NCHSAA
The state Senate approved legislation Wednesday that would weaken the authority of the N.C. High School Athletic Association, including blocking the group’s efforts to allow athletes to profit off their name, image and likeness.
Under Senate Bill 636, only the State Board of Education would be allowed to set rules governing NIL agreements for high school athletes. The wording was added to the bill on Wednesday after some Republican lawmakers accused the NCHSAA of overreaching with a vote the same day to allow NIL deals.
“This week with this very bill moving, this organization saw fit to overstep their rights and their power, and then they work behind our backs to undermine the General Assembly’s authority to exploit our children all in the name (of) a dollar,” said Sen. Vickie Sawyer, an Iredell County Republican.
The bill would tell the NCHSAA to reduce fees for member schools, take less money from state tournament games and agree to annual audits. The legislation would not allow the NCHSAA to solicit grant funding and sponsorships from third parties, and would restrict it in providing scholarships or grants to players and schools.
The bill was approved in a 30-20 vote along partisan lines. All Republicans voted for the bill and all Democrats voted no.
The legislation now goes to the House.
Limits on athletic divisions dropped
The NCHSAA has a “memorandum of understanding” with the State Board of Education that allows it to continue in its role of governing public school athletics in the state. That agreement went into effect last July and is set to run for four years. It came after House Bill 91 was proposed that would’ve potentially disbanded the NCHSAA. Eventually state lawmakers and NCHSAA representatives agreed on a version of HB 91 that ultimately allowed the NCHSAA to remain in place.
The latest bill, SB 636, has drawn concerns from high school athletic programs across the state.
Some of those concerns were eliminated Monday when lawmakers removed language that would have required high school sports to remain grouped into four divisions, or classifications, based on factors such as enrollment size.
The bill came as a recent vote by N.C. high schools went in favor of expanding to seven classes beginning in the 2024-25 season.
NIL agreements questioned
On Wednesday, the NCHSAA Board of Directors approved a proposal to allow in-state athletes to profit off their name, image and likeness beginning July 1. Students would be able to profit from things like appearances, autographs, camps and clinics, group licensing deals, social media and product endorsements.
If it goes into effect, North Carolina would become the 28th state to adopt an NIL policy for high school athletes, according to Business of College Sports, which tracks NIL nationally.
Sawyer argued that HB 91, the 2021 state law, should have left the decision on NIL agreements to the state board and not the NCHSAA.
“The North Carolina High School Athletic Association has (seen) fit that they now are the ones who are going to be responsible for the name and licensing agreement for our students,” Sawyer said. “What does a third-party administering organization have the right to tell my family who owns my child’s likeness? That is not what this organization is here for.”
Sawyer said allowing NIL agreements involves a political process that deserves a political hearing.
“In no way should the High School Athletic Association have that authority,” Sawyer said. “And if they did have that authority it should be granted and explicitly given to (it) in law, and it does not.”
Early termination of MOU
In addition to the wording on NIL, an amendment added to the bill on Wednesday would modify the state’s memorandum of understanding so that the state superintendent could terminate it with six months’ notice. Currently, one year’s notice is required.
The amendment would require the NCHSAA, or any other group chosen to administer high school sports, to “agree to be audited annually by a reputable independent auditor.”
Sawyer said the legislation will catch things from the 2021 state law that were not included in the memorandum of understanding.
But Sen. Gladys Robinson, a Guilford County Democrat, said they should give more time for the current agreement to work before making so many changes.
If “we’re going to delegate to the State Board of Education for them to determine an MOU with the High School Athletic Association or any organization, then we ought to be saying to them what is necessary and then allow them to do their duty,” Robinson said. “I really object to this kind of behavior.”
This story was originally published May 3, 2023 at 6:02 PM with the headline "NC Senate votes to block NIL deals for high school athletes, weaken power of NCHSAA."
