Athletics Veritas is a weekly series aimed at helping higher education executives, faculty, and other stakeholders stay tuned in on trending national issues impacting college athletics, especially NCAA Division I. Athletics Veritas is created by senior DI athletic administrators around the nation.
Term-in-Ology: Recruiting Inducement
One of the primary concerns with the advent of NIL opportunities is whether compensation tied to NIL activities (or the guise of an NIL activity) will be used as a recruiting inducement to get high school prospects to commit to Division I schools.
NCAA Division I Bylaw 13.15.1 is entitled “Prohibited Expenses” and it speaks to this recruiting inducement prohibition.
Specifically, an institution or a representative of its athletics interests shall not offer, provide or arrange financial assistance, directly or indirectly, to pay (in whole or in part) the costs of the prospective student-athlete's educational or other expenses for any period prior to the prospective student-athlete's enrollment or so the prospective student-athlete can obtain a postgraduate education.
This rule’s definition is wide in scope. The prohibited expenses provision applies to all prospects including those who have signed a National Letter of Intent or an institutional offer of admission or financial aid.
Yet, high school prospects (signed or not) may now earn compensation for NIL activities including from representatives of athletics interests. A violation of this bylaw moving forward will need to reflect a high school prospect’s acceptance of funds when there is not an authentically fulfilled NIL activity at fair market value -- a marketplace that is nascent and in the eye of the beholder.
Athletics Veritas is presented for information purposes only and should not be considered advice or counsel on NCAA compliance matters. For guidance on NCAA rules and processes, always consult your university’s athletics compliance office, conference office, and/or the NCAA.
