Can NCAA Athletes Now Accept Prize Money?

Student-athletes can profit from their name, image, and likeness. So if a meet director offers money as an appearance fee, it should be ok?...but if the money is for actually competing in a meet or placing high at a meet, it is not ok?

This is going to be interesting as the details of the NIL stuff gets sorted out.

There are two distinct issues. First is what the NCAA's written rules allow. Second is what the Sherman Act, as recently interpreted by the Supreme Court, allows. If I were the NCAA's antitrust counsel, and they asked me whether they could prohibit student athletes from accepting unlimited prize money, my advice would be that any such limit would be unlawful after the Alston decision. It's technically not the precise issue decided in that case, but it's difficult to see how the Court's reasoning wouldn't apply equally to prize money.

It is allowed up to a certain amount and if used for 'expenses' related. And, you should or will have to pay income taxes on it unless you can write it off for education/occupation expenses (like you are a self-employed athlete). However, I agree with an earlier poster that you should be allowed to collect up 'x' amount that equates to whatever a full athletic scholarship would have been to help pay your schooling costs. What a way to start cutting into the student-debt loan problems.

couldn't continue waiting at least 5 minutes wrote:

ncaaprizemoney wrote:

Under the new rules can NCAA athletes now accept prize money?

Technically, at this time, no.

However it's only a matter of time before someone fights that rule in court and then that rule will be gone too.

The NCAA has essentially lost all power to stop student athletes from making money.

The only thing that can prevent a student athlete from earning any form of income will be if that form is illegal.

Is it possible that schools can tie making money to actually being a student. Showing up for a full slate of classes and passing them as a real student. Not the BS that was going on when I was an athlete in college.

Let the presidents of the college say what a student is not the athletic director.

You don't show up for class, fail, or get caught cheating you are out of school and your $ contract is gone.

comedyre1!3f wrote:

The real question is how can we force the athletes to give their appearance fees back to the University?

https://www.youtube.com/watch?v=IWoP81YO3V4

That was pretty good.

Do you have a link to the specific rule or point me to where the rule can be found?

It is an interesting dynamic, but I also think there could be a distinction here in terms of eligibility rules that could still allow for the prohibition on prize money. A big issue with Alston was that the NCAA and schools were profiting from the NIL of students without their permission and without them getting a penny.

I could see the courts not allowing prize money. It should be noted that the NCAA has an exception for Olympic prize money.

A few people have mentioned this, but yes, for almost a decade now:

NCAA Division I Manual states:
“Exception for Prize Money Based on Performance – Sports Other Than Tennis. In sports other than tennis, an individual may accept prize money based on his or her place finish or performance in an athletics event. Such prize money may not exceed actual and necessary expenses and may be provided only by the sponsor of the event. The calculation of actual and necessary expenses shall not include the expenses or fees of anyone other than the individual.”

Article 12.02.3 gives an understanding on how to calculate the actual and necessary expenses.
“Calculation of Actual and Necessary Expenses – Individual Sports. In individual sports, the calculation of an individual’s actual and necessary expenses shall be based on expenses incurred during each calendar year (January-December), rather than on an event-by-event basis.”

article 12.02.2 states permissible expenses:
“Actual and Necessary Expenses. Actual and necessary expenses are limited to:
Meals;
Lodging;
Apparel, equipment and supplies;
Coaching and instruction;
Health/medical insurance;
Transportation;
Medical treatment and physical therapy;
Facility usage;
Entry fees; and
Other reasonable expenses