The State of New Jersey has joined California, Colorado, Florida and Nebraska as states who have passed laws protecting the rights of student-athletes (as they relate to being compensated for their name, image and likeness rights). Signed by Governor Phil Murphy, the New Jersey Fair Play Act (NJFPA) will allow student-athletes to earn financial compensation from the use of their name.
The NJFPA would be applicable in the fifth academic year following its enactment. In other words, under the Act, a four-year institution would be prohibited from upholding any rule, requirement, standard, or other limitation that prevents college athletes from monetizing the use of their name, image, or likeness.
Additionally, a four-year institution would be prohibited from joining the NCAA or any athletic association, conference, or other group or organization with control over intercollegiate athletics if:
- its college athletes are prohibited from earning compensation from their name, image, or likeness.
- it were to prevent a student-athlete from obtaining professional representation in relation to contracts or legal matters.
- it interfered with compensation reaching a student-athlete.
While granting the student-athletes the right to profit from the use of their name, image, and likeness, it falls upon the student-athlete to disclose the contract to a university-designated official of the four-year institution of higher education. Further, the student-athlete endorsers will be prohibited from earning compensation in connection with certain industries, including: adult entertainment, alcohol, gambling of any kind, tobacco/e-smoking, pharmaceuticals, controlled dangerous substances and firearms. (Should a student-athlete earn compensation from such a resource, their scholarship eligibility will be revoked).
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The information contained in this article is intended for educational purposes and to provide a general understanding of regulatory events, legislative changes and the law – not to provide specific legal advice.