NIL Clubs ensure full compliance with high school regulations by following these key principles:
State-Specific Compliance
Each state's bylaws and rules are reviewed with legal experts before allowing any students to sign up for an NIL Club in that state.
NIL Club Participation
NIL Clubs are available to all high school students, not just athletes.
Students from various social groups and activities (e.g., band, theater, robotics) are already using the platform, empowering them to start their entrepreneurial journey and gain financial literacy experience.
Compensation Structure
Content-Driven Compensation:
Students do not receive any compensation until they post content for their subscribers to see. This ensures that compensation is tied to content creation rather than athletic performance.
Non-Athletic Compensation:
NIL Clubs do not compensate individuals for athletic achievements or participation. Compensation is based on:
Use of name and image on club materials.
Rendering promotional services.
Licensing, contributing, and publishing content.
Subscriber-Based Compensation:
Compensation comes from paying subscribers, not from schools or agents, ensuring a clear separation from school resources.
Compliance and Safety
No Enrollment Incentives:
NIL Clubs do not provide incentives for school enrollment or for remaining enrolled.
Compliance and Disclosure:
The NIL Club app includes all necessary information for compliance and disclosure to ensure transparency.
Respect for School Branding:
NIL Clubs do not use or capitalize on school "marks" or names commercially, maintaining respect for school branding and trademarks.
Content-Based Subscriptions:
NIL Clubs are content-based subscriptions with no association with products that are illegal for those under 18, such as gambling, alcohol, tobacco, or firearms.
Not Collectives:
NIL Clubs are not a collective, as these communities are run by students, not by adults or boosters. Friends, fans, and other supporters can access the community’s paywalled updates and posts by paying a nominal subscription fee.
Built for Compliance:
NIL Clubs are inherently compliant, with built-in guardrails customized to each state to ensure no one runs into eligibility issues. The team actively works with state organizations to ensure compliance and transparency.
Monitoring System:
The software includes a monitoring system that flags and removes school IP, uniforms, and marks when students attempt to use them on the site. This helps educate students about NIL and ensures that they remain compliant and therefore eligible.
Educational Opportunities
The NIL Club app aims to be a beacon of financial literacy education and Name, Image, and Likeness (NIL) information.
The entrepreneurial nature of the platform provides an opportunity to help young people learn and grow, developing skills that will benefit them beyond their high school years.
Free resources on financial literacy, NIL, and health and wellness will be offered because access to content like this is crucial for high schoolers.
Parental Support
Parents and guardians can support their teen's NIL Club experience by staying informed and discussing the importance of managing their online presence.
They are also responsible for assisting any user under the age of 18 with monetary withdrawals from the platform.