On April 16, 2021, the governor of Mississippi signed Senate Bill 2313 (i.e., the “Mississippi Intercollegiate Athletics Compensation Act”) into law permitting student-athletes enrolled in a “postsecondary educational institution” in Mississippi 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.  Mississippi becomes the seventh state to enact legislation that permits student-athletes to accept compensation for their names, images, and likenesses (following California, Colorado, Florida, Nebraska, New Jersey, and New Mexico).  The law goes into effect on July 1, 2021.

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

• Earn compensation, commensurate with market value, for the use of the name, image, or likeness of the student-athlete while enrolled at a postsecondary educational institution;
• A student-athlete may obtain and retain a certified agent for any matter or activity relating to such compensation.

The act further provides, in pertinent part, that postsecondary educational institutions and governing bodies may not:

• A postsecondary educational institution shall not uphold any contract, rule, regulation, standard or other requirement that prevents a student-athlete of that institution from earning compensation as a result of the use of the student’s name, image, or likeness.  Any such contract, rule, regulation standard or other requirement shall be void and unenforceable against the postsecondary educational institution or the student-athlete.  Compensation from the use of a student-athlete’s name, image, or likeness may not affect the student-athlete’s scholarship eligibility, grant-in-aid or other financial aid, awards or benefits, or the student-athlete’s intercollegiate athletic eligibility.  Nothing in this act is intended to alter any state and federal laws or regulations regarding the award of financial aid at postsecondary educational institutions.
• An athletic association, conference or other group or organization with authority over intercollegiate athletic programs, including, but not limited to, the National Collegiate Athletic Association (NCAA) and the National Junior College Athletic Association (NJCAA), shall not prevent, or otherwise enforce a contract, rule, regulation, standard or other requirement that prevents, a student-athlete of a postsecondary educational institution from earning compensation as a result of the use of the student-athlete’s name, image or likeness.
• An athletic association, conference or other group or organization with authority over intercollegiate athletics programs, including, but not limited to, the National Collegiate Athletic Association and the National Junior College Athletic Association, shall not enforce a contract, rule, regulation, standard or other requirement that prevents a postsecondary educational institution from participating in an intercollegiate athletics program as a result of the compensation of a student-athlete for the use of the student-athlete’s name, image or likeness.
• A postsecondary educational institution, athletic association, conference or other group or organization with authority over intercollegiate athletics programs, including, but not limited to, the National Collegiate Athletic Association and the National Junior College Athletic Association, shall not, directly or indirectly: (a)  Enter into, or offer to enter into, a name, image and likeness agreement with a prospective or current student-athlete; or (b)  Provide a prospective or current student-athlete or the student-athlete’s family compensation in relation to the use of the student-athlete’s name, image or likeness.
• A postsecondary educational institution, athletic association, conference or other group or organization with authority over intercollegiate athletics programs, including, but not limited to, the National Collegiate Athletic Association and the National Junior College Athletic Association shall not prevent a student-athlete from obtaining professional representation in relation to name, image or likeness, or to secure a name, image and likeness agreement, including, but not limited to, representation provided by athlete agents or legal representation provided by attorneys.  A student-athlete shall provide the postsecondary educational institution with written notice at least seven (7) days prior to entering into a representation agreement with any individual for the purpose of exploring or securing compensation for use of the student-athlete’s name, image or likeness.
• A grant-in-aid, including cost of attendance, and other permissible financial aid, awards or benefits from the postsecondary educational institution in which a student-athlete is enrolled shall not be revoked, reduced, nor the terms and conditions altered, as a result of a student-athlete earning compensation or obtaining professional or legal representation pursuant to this act.
• A third-party licensee may not enter into, or offer to enter into, a name, image and likeness agreement with a student-athlete or otherwise compensate a student-athlete for the use of the student-athlete’s name, image and likeness rights if a provision of the name, image and likeness agreement or the use of the student-athlete’s name, image and likeness rights conflicts with a provision of a contract, rule, regulation, standard or other requirement of the postsecondary educational institution unless such contract or use is expressly approved in writing by the postsecondary educational institution.
• No postsecondary educational institution, booster, third-party licensee or any other individual or entity shall provide a prospective or current student-athlete compensation or enter into a name, image and likeness agreement as an inducement for the student-athlete to attend or enroll in a specific institution or group of institutions.  Compensation for a student-athlete’s name, image, or likeness may not be conditioned on athletic performance or attendance at a particular postsecondary educational institution.
• A contract for the use of a student-athlete’s name, image, or likeness which is formed while the student-athlete is participating in an intercollegiate sport at a postsecondary educational institution may not extend beyond the student-athlete’s participation in the sport at the institution.

In turn, student-athletes are required to or prohibited from doing the following:

• Before any contract for compensation for the use of a student-athlete’s name, image or likeness is executed, and before any compensation is provided to the student-athlete in advance of a contract, the student-athlete shall disclose the contract to a designated official of the postsecondary educational institution in which the student is enrolled in a manner prescribed by the institution.
• No student-athlete shall enter into a name, image, and likeness agreement or receive compensation from a third-party licensee relating to the name, image or likeness of the student-athlete before the date on which the student-athlete enrolls at a postsecondary educational institution.
• No student-athlete shall enter into a name, image, and likeness agreement or receive compensation from a third-party licensee for the endorsement or promotion of gambling, sports betting, controlled substances, marijuana, tobacco or alcohol company, brand or products, alternative or electronic nicotine product or delivery system, performance-enhancing supplements, adult entertainment or any other product or service that is reasonably considered to be inconsistent with the values or mission of a postsecondary educational institution or that negatively impacts or reflects adversely on a postsecondary education institution or its athletic programs, including, without limitation, bringing about public disrepute, embarrassment, scandal, ridicule or otherwise negatively impacting the reputation or the moral or ethical standards of the postsecondary educational institution.

The Mississippi act also makes it clear that student-athletes are deemed to be employees or independent contractors of an association, a conference, or a postsecondary educational institution based on the student-athlete’s participation in an intercollegiate athletics program.  Additionally,  postsecondary educational institution may impose reasonable limitations on the dates and time that a student-athlete may participate in endorsement, promotional, social media or other activities related to the license or use of the student-athlete’s name, image and likeness.

Like Florida and New Jersey, the Mississippi act requires student-athletes obtaining legal representation to use lawyers licensed by the State of Mississippi. Also, athlete agents are required to comply with the terms of the Uniform Athlete Agents Act (Section 73-42-1 et seq., Mississippi Code of 1972) and the Sports Agent Responsibility and Trust Act (i.e., SPARTA).

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