After lawsuit, North Carolina Board of Education considers new NIL rules for public school athletes

RALEIGH, N.C. (WTVD) -- The State Board of Education advanced a rules proposal that would allow public school students in grades six through 12 to capitalize off their Name, Image, and Likeness.

"We don't do this for part-time jobs that kids have with their families, right? Kids have part-time jobs, some of them are making quite a bit of money with part-time jobs, we're not stepping in," said Catty Moore, a member of the Board of Education who formerly served as Wake County Public Schools Superintendent.

About 40 states allow NIL for grade-school athletes to varying degrees. While it's allowed for private school athletes in North Carolina, it's banned for public school athletes. The restriction is at the heart of a lawsuit filed by the mother of Faizon Brandon, one of the nation's top football recruits, who is a star quarterback at Grimsley High in Greensboro.

Under the proposed rules, athletes in grades six through 12 would be able to be compensated for public appearances, autograph signings, social media posts, endorsements, and hosting camps, among other avenues.

"We have a few athletes that could definitely fit the mold and kind of be in a position to (take advantage)," said Jared Grady, a Durham native and former NCAA Division I basketball player at the University of Indianapolis.

He now owns Fire Ball Basketball Academy in Wake Forest.

Grady acknowledged the changing landscape since his playing days, noting the potential positives and negatives of such regulations going into effect.

"Be goal-oriented. Focus on the basketball, the bigger picture. Definitely have a strong circle like whether that's family or support system that can kind of guide you to do these things," Grady said. "High-school athletes, middle-school athletes, they're young. And making big-time decisions when it comes to money, it can definitely deter their ultimate goal to actually be something more, whether that's inside basketball, outside basketball, college (or) pro."

At this juncture, NIL has largely been used by collegiate athletes. According to NIL marketplace Opendorse, North Carolina ranks in the Top 15 nationally in NIL spending, making up about 5% of the market.

"In year five of NIL, which starts in July of 2025 and beyond, it's projected to exceed $2.5 billion because of revenue sharing and more that's occurring," said Braly Keller, Director of NIL and Business Insights with Opendorse.

He said he believes the state would likely make up a similar portion of the high school NIL market should it become legal.

"I certainly think whenever there's a rule change, we see an immediate influx of deals. Someone wants to race to be the first athlete in the state to have done an NIL deal," said Keller.

Participating students and their parents would need to take an NIL course and submit forms for each deal to school administrators. There would be some limitations, including endorsed appearances wearing school uniforms, as well as a ban on endorsing alcohol, tobacco, cannabis, control substances, vaping, nicotine, pharmaceuticals, gambling, weapons, adult establishments or services, or any other activities that "would disrupt the operations of the school."

"I think that's as close to universal across the board as you'll get," said Keller about such limitations.

In February 2023, Keller met with NCHSAA officials to discuss a potential framework of rules in the state.

"Some of the questions that that I do recall were, 'What does this mean for institutional involvement? How involved should our schools be? How supportive should are aides or coaches be? Should we be promoting our own athletes? Should we be supporting them or putting their name out there,'" said Keller.

These rules will now go to public comment which will begin in October, and run through early December, before a final vote in January. If it passes, this would go into effect beginning July 1.