Legislative Analysis
Phone: (517) 373-8080
HIGH SCHOOL STUDENT ATHLETE NAME, IMAGE,
http://www.house.mi.gov/hfa
AND LIKENESS (NIL) COMPENSATION
Analysis available at
House Bill 4816 (H-5) as passed by the House http://www.legislature.mi.gov
Sponsor: Rep. Jimmie Wilson, Jr.
Committee: Higher Education
Complete to 10-23-23
SUMMARY:
House Bill 4816 would create a new act, the Compensation of High School Athletes Act, to
provide guidelines for high school student athletes and their ability to receive compensation
for their name, image, or likeness (NIL).
Specifically, the bill would prohibit a high school from upholding any rule, requirement,
standard, or other limitation that prevents a student athlete of that high school from fully
participating in high school athletics based on the student athlete’s earning compensation
from use of their NIL rights.
High school would mean a public or nonpublic school that offers at least one of
grades 9 to 12.
The bill would also prohibit a high school, or any officer, director, or employee of a high
school, including a coach or member of the coaching staff or any other individual associated
with the high school athletic department, from doing any of the following in regard to a
student athlete’s NIL rights or athletic reputation:
• Identifying or otherwise assisting with opportunities for a student athlete to earn
compensation from their NIL or athletic reputation.
• Serving as a student athlete’s agent.
• Receiving compensation from the student athlete or a third party for facilitating or
enabling those opportunities.
• Attempting to influence the student athlete’s high school enrollment or choice of
professional representation related to those opportunities.
• Attempting to reduce a student athlete’s opportunities from competing third parties.
• Attending any meeting at which a contract for compensation from those opportunities
is negotiated or completed between the student athlete and a third party.
This prohibition would not apply to an individual who is acting in their capacity as the
student athlete’s parent or legal guardian.
Allowable forms of NIL agreements
The bill would allow a high school student athlete to earn NIL compensation from such
activities as any of the following:
• Commercials.
• Product endorsements.
• Personal appearances.
• Autograph sessions.
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 • Merchandise or apparel sales.
• Group licensing.
• Acting as a social media influencer.
A high school student athlete could not receive NIL compensation from activities involving
any of the following products and services:
• An adult entertainment product or service.
• An alcohol product.
• A tobacco or electronic smoking product or device.
• A controlled substance.
• Any form of gambling, including sports betting and horse racing.
• A weapon, firearm, or ammunition.
• A nutritional supplement
A high school student athlete also would be prohibited from entering into a written agreement
or contract with a third party to earn NIL compensation if any of the following apply:
• The third party is an entity formed for the express purpose of receiving or pooling
funds to provide NIL opportunities for student athletes.
• The written agreement or contract is contingent on the student athlete’s athletic
performance or achievement.
• The written agreement or contract requires the student to miss school or instructional
time to meet its provisions.
• The written agreement or contract is an apparel contract that requires the student
athlete to display a sponsor’s apparel, or otherwise advertise for a sponsor, during an
official team activity.
Prohibited actions by entities with authority over high school sports
The bill also would prohibit an athletic association, conference, or other group or
organization with authority over high school athletics from doing either of the following:
• Preventing a high school student athlete from fully participating in high school
athletics based on their earning compensation from their use of their NIL rights.
• Preventing a high school from fully participating in high school athletics without
penalty based on a student at that school’s use of their NIL rights.
Athletic association would mean an entity that operates for the purpose of developing
common rules for the eligibility and competition of high school student athletes in
Michigan.
The bill would also prohibit a high school, athletic association, conference, or other group or
organization with authority over high school athletics from doing any of the following:
• Providing a student athlete of a high school or a prospective student athlete of a high
school with compensation in relation to the student athlete’s NIL rights.
• Preventing a student athlete of a high school from obtaining professional
representation in relation to contracts or legal matters regarding opportunities to be
compensated, including representation provided by an athlete agent or legal
representation provided by an attorney.
• Preventing a high school student athlete from earning compensation (here including
food, shelter, medical expenses, insurance, cash, barters, free products, and discounts)
from a third party as a result of the student’s NIL rights, or athletic reputation, as long
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 as the student’s contract with the third party does not require the student to advertise
for a sponsor in person during an official, mandatory team activity.
Group would include a booster club, a dad’s club, or an athletic foundation.
A high school, athletic association, conference, or other group or organization with authority
over high school athletics could not interfere with or prevent a student athlete from fully
participating in high school athletics based on the student’s obtaining professional
representation in relation to contracts or legal matters regarding their opportunities to earn
compensation, including representation provided by an athlete agent or financial advisor or
legal representation provided by an attorney.
An athletic association, conference, or other group or organization with authority over high
school athletics also could not prevent a high school from fully participating in high school
athletics without penalty as a result of a student of the high school’s obtaining professional
representation in relation to contracts or legal matters regarding the student’s opportunities to
earn compensation, including representation provided by an athlete agent or financial advisor
or legal representation by an attorney.
(For purposes of the above two paragraphs, professional representation by an athlete agent,
financial advisor, or attorney would have to be provided by persons licensed in Michigan.)
Required notice of NIL opportunity
A student athlete who intends to enter into a verbal or written opportunity or contract that
would provide them compensation for use of their NIL rights would need to obtain the
permission of at least one parent or guardian before entering into the agreement. This would
not apply if the student is 18 years of age or older or is an emancipated minor.
In addition to obtaining the permission of a parent or guardian, the student athlete would have
to disclose the proposed opportunity or contract for review to an official of the Michigan
High School Athletic Association (MHSAA) at least seven days before committing to that
opportunity.
If the MHSAA identifies a conflict between the student athlete’s proposed opportunity or
contract, the MHSAA would have to communicate that conflict to the student athlete so the
student athlete could negotiate a revision of the opportunity or contract to avoid the conflict.
That revision would be subject to additional review and approval by the MHSAA in
accordance with these provisions.
A policy of a high school’s athletic program could not prevent a student athlete from
receiving compensation for using their NIL rights for a commercial purpose when the student
is not engaged in an official team activity. This would include participating in or being part
of an advertisement that was created while the student was not engaged in an official team
activity but that could otherwise be broadcasted, displayed, or disseminated at any time.
The above provisions would not apply to a contract entered into, modified, or renewed on or
before the effective date of bill. (In other words, those provisions would take effect the day
after the bill itself takes effect.)
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 Scope of the act
The bill states that it would not require a high school, athletic association, conference, or
other group or organization with authority over high school athletics to identify, create,
facilitate, negotiate, or otherwise enable opportunities for a high school student athlete to
earn compensation for NIL rights.
The bill also states that it would not establish or bestow the right of a student to use the name,
trademarks, service marks, logos, symbols, or any other intellectual property, whether
registered or not, of a high school, athletic association, conference, or other group or
organization with authority over high school athletics in furtherance of their opportunities to
earn compensation for the use of their NIL rights.
The bill also states that it would not limit the right of a high school or athletic association to
establish and enforce any of the following:
• Academic standards, requirements, regulations, or obligations for its students.
• Team rules of conduct or other rules of conduct.
• Standards or policies regarding the governance or operation of or participation in high
school varsity athletics.
• Disciplinary rules and standards generally applicable to all students of the high
school.
• Rules relating to amateur status that do not conflict with the proposed act.
Required reporting
By December 31, 2024, and by December 31, 2025, any nonprofit trade association that
represents high schools in this state would have to provide a written summary of any
congressional action on legislation on student athlete NIL compensation for each of those
years to the chair of the Michigan Department of Education (MDE)
By June 30, 2026, any nonprofit trade association that represents high schools in this state
would have to provide to MDE a written summary of the preparedness of the association’s
respective member high schools in implementing the new act. (Note that the bill does not
include a prospective effective date.)
Other provisions
Finally, the bill would stipulate that a legal settlement arising under the act could not permit
noncompliance with the act.
Note that the bill does not provide any penalties or remedies for violating any of its
prohibitions.
BACKGROUND AND DISCUSSION:
According to sponsor testimony, the intent of the bills is to allow high school students the
ability to utilize their popularity as an athlete to earn compensation through use of their name,
image, and likeness (NIL) rights while retaining the ability to participate in high school
athletics. Presently, the Michigan High School Athletic Association, the entity that oversees
high school athletics in Michigan, has prohibitions on student athletes receiving money for
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 participating in MHSAA tournaments, as well as a $40 value limit on direct compensation
that a student may receive for participating in an MHSAA-sanctioned sport. 1
The bill would not directly overturn these policies but would carve out a path for students to
pursue opportunities with third parties to earn compensation in exchange for an action taken
on the student athlete’s part, such as appearing at an event to sign autographs or agreeing to
promote a good, service, or business on social media. While it is expected that only the top-
recruited student athletes would likely receive compensation in a significant amount, the bill
would also, for example, allow students to receive gift cards from a local restaurant in
exchange for doing a series of promotional posts on a social media site such as Instagram or
TikTok.
The lines of discussion in committee centered around fairness for high school student athletes
to earn compensation in the same way non-athlete students could, whether promoting
products and services would detract from school time, and concern that high school student
athletes should not be allowed to earn compensation for promoting products or services only
available to individuals 18 years of age or older, such as tobacco and alcohol.
FISCAL IMPACT:
The bill would have no fiscal impact on the state and minimal fiscal impact on local school
districts, intermediate school districts (ISDs), and public school academies (PSAs).
Administrative rules, practices, and materials may have to be updated, but those costs should
be minimal and absorbed under current funding levels.
POSITIONS:
The Michigan High School Athletic Association indicated support for the H-3 substitute for
the bill. (10-4-23)
Legislative Analyst: Josh Roesner
Fiscal Analysts: Jacqueline Mullen
Noel Benson
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations and does not constitute an official statement of legislative intent.
1
https://www.mhsaa.com/sites/default/files/2022-06/offguide.pdf
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