The governor of Michigan signed House Bill 5217 into law permitting student-athletes enrolled in a colleges and universities in Michigan to be paid for the use of their names, images, and likenesses, to hire representatives to represent student-athletes’ interests, and declaring that a student-athlete may not be compelled to forfeit his/her rights in order to participate in intercollegiate athletics.  Arizona becomes the eleventh state to enact legislation that permits student-athletes to accept compensation for their names, images, and likenesses (following California, Colorado, Florida, Nebraska, New Jersey, New Mexico, Mississippi, Alabama, Arkansas, and Arizona).  The law takes effect on December 31, 2022.

In most respects, the Michigan act is similar to predecessor acts enacted in California, Colorado, Florida, Nebraska, New Jersey, New Mexico, Mississippi, Alabama, Arkansas, and Arizona.  In pertinent part, the act provides a student-athlete may:

• A student-athlete may enter into a contract and receive compensation for the commercial use of the student-athlete’s publicity rights; and
• Earning compensation for the commercial use of a student-athlete’s publicity rights shall not affect the student-athlete’s scholarship eligibility.

In turn, student-athletes are required to or prohibited from doing the using their names, images, and likenesses in the following circumstances:

• A student shall not enter into an apparel contract providing compensation to the student for use of his or her name, image, or likeness rights that requires the student to display a sponsor’s apparel, or otherwise advertise for a sponsor, during official team activities if the provision is in conflict with a provision of the student’s postsecondary educational institution’s team contract.
• The Act does not establish or bestow the right of a student to use the name, trademarks, services marks, logos, symbols, or any other intellectual property, whether registered or not, of a postsecondary educational institution, athletic association, conference, or other group or organization with authority over intercollegiate athletics, in furtherance of the student’s opportunities to earn compensation for the student’s use of his or her name, image, or likeness rights.
• A student who intends to enter into a verbal or written opportunity or contract that would provide compensation to the student for use of his or her name, image, or likeness rights shall disclose the proposed opportunity or contract to a designated official of the postsecondary educational institution that the student attends, as designated by that institution, at least 7 days prior to committing to the opportunity or contract, for review by that institution.

The Act requires that any athlete agent, financial advisor, or attorney representing or advising a student must be licensed in Michigan.

For any questions, feel free to contact Christian Dennie at cdennie@bgsfirm.com.