Booster Involvement
How do I know if I am a booster?
Per NCAA rules, a booster is anyone who has:
- Provided a donation in order to obtain season tickets for any sport at Stanford.
- Participated in or has been a member of an organization promoting Stanford’s athletics programs.
- Made financial contributions to Stanford Athletics or a Stanford booster organization.
- Arranged for or provided employment for enrolled student-athletes.
- Assisted or has been requested by Stanford staff to assist in the recruitment of athletic prospects.
- Assisted in providing benefits to enrolled student-athletes or their families.
- Been involved otherwise in promoting Stanford athletics.
Are boosters permitted to compensate PROSPECTIVE student-athletes for their NIL?
Boosters are not precluded from entering into NIL deals with prospect-aged individuals. However, NCAA rules prohibit boosters from engaging in recruiting conversations with prospective student-athletes prior to triggering student-athlete status. Moreover, any NIL deal between a Stanford booster and prospect-aged individual cannot be provided as a recruiting inducement to attend Stanford.
Are boosters permitted to compensate CURRENT Stanford student-athletes for their NIL?
Yes, boosters are permitted to enter into NIL agreements with student-athletes provided that the agreements meet all other NIL requirements (e.g., compensation provided in exchange for services provided, payments not tied to athletic performance, and agreement not an inducement to attend or remain at Stanford). Stanford boosters cannot merely pay student-athletes without an exchange of services. Mere payment would constitute an “extra benefit”.
What is an “extra benefit"?
An “extra benefit” is any special arrangement by a booster to provide a student-athlete or the student-athlete family member or friend a benefit not authorized by NCAA regulations. Receipt of a benefit by student-athletes or their family members or friends is not a violation if it is demonstrated that the same benefit is generally available to Stanford students or their family members or to a particular segment of the student body (e.g., international students).
Can an NIL deal include a commingled employment opportunity?
No. An NIL deal should not include a commingled NIL arrangement and an employment opportunity. By commingling these opportunities, it may unintentionally jeopardize a student-athlete’s athletic eligibility. Stanford recommends that if a booster is interested in engaging in a NIL activity and an employment arrangement with a student-athlete, that they bifurcate the two opportunities to have two separate agreements: (1) NIL agreement, and (2) employment contract/appointment.
- Do: A booster wants to enter a NIL deal with a student-athlete, but also potentially set the student-athlete up with an internship with a friend.
The booster executes a NIL agreement with the student-athlete for an autograph signing with friends and family. The terms and compensation (rate, format, etc.) for the autograph signing are clearly outlined in the NIL agreement.
Separately, the booster can connect the student-athlete and the venture capitalist friend about the internship opportunity. The venture capitalist firm should adhere to the business’ standard practices of interviewing and/or offering internships (e.g., interested parties apply, go through a formal interviewing process, etc.). In extending an internship offer to the student-athlete, Stanford recommends the venture capital firm (not the booster) provide a written contract, appointment, or letter outlining the student-athlete’s internship responsibilities and duties, as well as the rate of pay cited for the internship (i.e., for employment services as opposed to performing non-NIL-related activities).
- Don’t: A booster presents a NIL deal to a student-athlete whereby the student-athlete agrees to both: (1) engage in an autograph signing for friends and family at an upcoming retreat, and (2) set up the student-athlete with an internship with a friend who runs a venture capital firm.
This deal is commingled such that it may jeopardize the student-athlete’s NCAA eligibility.
Can a booster provide non-cash compensation to a student-athlete in exchange for engaging in a NIL activity?
Yes. Student-athletes can be compensated in non-cash forms (e.g., discounts, free or reduced meals/lodging, free or reduced apparel or equipment, etc.). However, it is important that the non-cash compensation is provided in exchange for work performed by the student-athlete, the non-cash compensation is a fair market value relative to the services rendered by the student-athlete, and the NIL activity is not tied to a student-athlete’s athletic performance or achievement.
Can boosters provide professional services to a student-athlete, such as serving as a marketing agent, providing tax advice, etc., for purposes of NIL?
Maybe. Please refer to the Professional Representation & Agents section for more clarity and practical examples. If boosters are interested in providing specialized education that could assist our student-athlete population with general NIL principles (ex., brand strategy, contract negotiations, deal sourcing, etc.), please contact Stanford Athletics at athleticsnil@stanford.edu.
Impermissible Inducements to Attend Stanford
May a NIL agreement include a clause stipulating that only if the student-athlete attends and/or remains enrolled at Stanford will they be able to receive compensation?
No, this arrangement would be considered an inducement to attend Stanford, and therefore impermissible.
May a NIL agreement include a clause that the student-athlete must be on the Stanford team in order to receive compensation?
No. The NCAA clarified that NIL terms that require a student-athlete’s participation on the institution’s varsity team is prohibited. While implicit, the NCAA has determined a clause of this nature to be a reward for attending Stanford. Also known as ‘Pay for Play.’
- Don’t: A business offers a student-athlete a NIL deal whereby the student-athlete will serve as a brand ambassador for the next two years. However, there is a clause in the NIL agreement that should the student-athlete leave Stanford or no longer participate on the Stanford varsity team, the ambassador compensation is no longer guaranteed.
The NCAA has determined such a clause within the NIL agreement would be considered a reward for attending Stanford, and therefore impermissible.
May a NIL agreement include a clause that the student-athlete must live in Stanford and/or Palo Alto in order to receive compensation?
No, while certainly less obvious than a clause requiring a student-athlete to be on the Stanford varsity team, the NCAA has interpreted NIL terms mandating the student-athlete be relegated solely to the locale of the institution is, in effect, a reward for attending Stanford, and therefore prohibited as an inducement.
- Do: A local tennis equipment shop offers a student-athlete a NIL deal whereby the student-athlete will be used in advertisements for the business. The business extends to the student-athlete a one-year contract, with the ability to extend the contract for an additional year at the business’ discretion. If, after one year, the student-athlete is no longer in the locale and the business no longer wants to utilize the student-athlete’s NIL, the business can cancel the agreement per the renewal terms outlined in the contract.
- Don’t: A local tennis equipment shop offers a student-athlete a NIL deal whereby the student-athlete will be used in advertisements for the business for the next two year. However, a term in the NIL agreement states that if the student-athlete moves out of the locale, the business has the option to void the contract.
The NCAA has determined such a clause within the NIL agreement would be considered a reward for attending Stanford, and therefore impermissible.
Should an NIL agreement include a clause that the student-athlete must be eligible for college athletics in order to receive compensation?
No, to best protect the athletic eligibility of the student-athlete, NIL agreements should not include a clause stipulating the student-athlete be eligible for college athletics.
May a booster or third party provide NIL compensation to a high school or transfer recruit with the explicit or implicit intention that the individual will then attend Stanford?
No. A booster or third party is prohibited from entering into a NIL agreement with a high school or transfer recruit with the explicit or implicit intention that the individual then attend Stanford. Such an arrangement would constitute an impermissible recruiting inducement.
Stanford Athletic Staff Involvement
May Stanford coaches and staff recommend, assess, facilitate, or arrange an NIL agreement between a student-athlete and a booster?
No. Stanford policy prohibits coaches and staff from recommending, assessing, facilitating, or arranging an NIL agreement between a student-athlete and a booster. For questions on a specific NIL opportunity, student-athletes should reach out to DASH for assistance.
If a booster is interested in simply discussing a potential NIL agreement with a student-athlete, may a Stanford coach or staff member engage in the discussion?
No. Stanford policy prohibits coaches and staff from recommending, assessing, facilitating, or arranging an NIL agreement between a student-athlete and any third party or booster. As such, coaches and staff are not permitted to engage in NIL discussions with a booster (or any other individual or third party).
Can a Stanford coach or staff member provide a booster with a student-athlete’s contact information for NIL purposes?
No. Stanford policy prohibits coaches and staff from facilitating or arranging any NIL deals. As such, coaches and staff are not permitted to provide student-athlete contact information for purposes of NIL opportunities.
Are coaches and staff permitted to pass along written inbound NIL inquiries they receive from a booster to student-athletes?
Yes. Coaches and staff may forward along a written inbound NIL inquiry to student-athletes. This is the case whether the inbound inquiry is specifying a desire to work with a specific student-athlete, a subset of student-athletes, or all student-athletes. Coaches and staff are not permitted to engage in verbal conversations with outside parties to collect NIL inbound inquiry information. However, in forwarding the inquiry to student-athletes, coaches and staff must include the templated email created by DAPER. This email language notes that in forwarding along the inquiry, Stanford Athletics is not signifying an endorsement of the third party or booster. Further, the language notes that Stanford neither encourages or discourages student-athletes from engaging in any NIL activities.
Exception: if a student-athlete has previously indicated to the coach and staff that they do not wish to be forwarded written inbound NIL inquiries, the coach and staff members will not engage in such practices.
Note: The email template language is included in DAPER’s internal NIL G:Drive. For any written inbound NIL inquiries, please include the following email address on the communication: athleticsnil@stanford.edu.
- Do: A Stanford dietician receives an email from a vendor that sells electrolytes stating they would like to work with a specific student-athlete to perform a NIL deal to promote their product. The dietician accesses the template language for forwarding written inbound NIL inquiries, adds the necessary language at the top of the email, and forwards it along to the respective student-athlete. All future communications between the vendor and the student-athlete do not include the Stanford dietician.
This would constitute a permissible passing along of information, as the Stanford dietician did not engage in any manner with the vendor. As such, this would not be considered facilitating or arranging a NIL deal on the part of the Stanford dietician.
- Don’t: A Stanford coach receives a call from a booster noting they would like to work with a specific student-athlete to perform a NIL deal to promote a charitable organization. The coach says they’d be happy to help pass along the information. The coach takes notes on the details of the deal and the contact information for the booster.
The coach then writes up the details discussed in an email, adding the required template language at the top, and sends it along to the student-athlete.
Due to the fact that there was discussion between the booster and the coach about the possible deal, there is an automatic presumption that assessment, facilitation, or arrangement of the NIL deal occurred. Unfortunately, this scenario would violate institutional policy.
Will the Stanford Athletics Compliance Office review student-athlete NIL agreements in advance of signing?
Yes. However, Stanford Athletics Compliance will provide feedback as to whether the agreement complies with California law, NCAA rules and regulations, and Stanford policies only. Stanford will not provide feedback as to any other terms of the agreement. Moreover, Stanford is only permitted to provide feedback directly to the student-athlete and/or their parent(s) (i.e., not other parties including agents, businesses, boosters, etc.). Stanford Athletics recommends that all third parties seeking to enter into a deal with a student-athlete draft the NIL agreement language and send it to the student-athlete and the Athletics Compliance Office for review. The Stanford Athletics Office will then work with the student-athlete on any questions or issues identified.
Student Obligations
May a student-athlete miss class to engage in NIL related activity?
Student-athletes must work with their professors to seek approval for any missed class time to engage in NIL activities. Stanford Athletics is not able to provide approval for student-athletes missing class.
May a student-athlete miss Stanford Official Team Activities to engage in NIL related activity?
No. Student-athletes may not miss any Official Team Activities, defined under the Stanford NIL Policy to include all Countable Athletically Related Activities (“CARA”) and Required Athletically Related Activities (“RARA”), for the purpose of NIL-related activities.
- Examples of CARA include, but are not limited to:
- Practice
- Competition
- Strength Training
- Film review
- Team meetings
- Examples of RARA include, but are not limited to:
- Athletics related meetings (compliance, academics, etc.)
- Recruiting-activities
- Press conferences
- Travel to and from away competitions
May a student-athlete engage in NIL activities during Stanford Official Team Activities?
No. Per Stanford policy, and in adherence with California law, student-athletes are not permitted to engage in NIL activities during Official Team Activities.
- Do: An electronics company thinks it would be great exposure to have a student-athlete wear their headphones during athletic activities. The company extends a NIL agreement to the student-athlete offering $200 for every non-Stanford affiliated post showing the student-athlete wearing the headphones.
So long as this arrangement is done outside of Official Team Activities, and adheres to Stanford Branding & Policies section, this would be permissible.
- Don’t: An electronics company thinks it would be great exposure to have a student-athlete wear their headphones during Stanford pre-game warms up. Toward that end, the company extends a NIL agreement to the student-athlete offering $200 for every Stanford pre-game warm up that the student-athlete wears the headphones.
This arrangement would constitute an impermissible arrangement of NIL activities during Official Team Activities.
Stanford Branding
Can student-athletes use the Stanford brand (e.g., block S, campus landmarks, Cardinal color, etc.) during NIL activities?
No. Please refer to the Stanford Branding & Policies section for more information and practical examples.
NIL Disclosure
Must NIL deals be documented in writing?
Stanford recommends all NIL deals be documented in writing; this approach allows the Stanford Athletics Compliance Office to fully vet the deal, ensuring there are no prohibited terms or conditions that may jeopardize a student-athlete’s athletic eligibility. However, there is not any state law or NCAA regulation prohibiting verbal NIL agreements. Whether written or verbal, all NIL deals must be disclosed to the Stanford Athletics Compliance Office.
Are boosters responsible for reporting NIL deals that include Stanford student-athletes to Stanford Athletics?
No. Boosters are not responsible for disclosing NIL deals. California law requires student-athletes disclose details of any NIL agreements they enter to their institutions. Stanford has established the Athletics Compliance Office as the appropriate reporting unit and has provided education to student-athletes on the proper reporting procedures.