High School NIL: Should Teenagers Sign Endorsement Deals?

Timeline

1. Jun 2021The NCAA adopts interim NIL rules for college athletes.
2. May 2022Nike signs its first high school NIL deal.
3. Aug 23, 2022CIF Southern Section reminds schools that students may endorse products only as individuals, without school affiliation.
4. Oct 10, 2022Oregon's state association approves NIL for high school athletes.
5. 2023Missouri law lets high school athletes earn NIL money only after committing to a Missouri college.
6. May 4, 2026Indiana's association votes 13–5 to allow NIL, becoming the 43rd state to do so.

The ethical issues

• Protecting minors from exploitation and pressure.
• Education: keeping school the priority.
• Recruiting: deals used to lure athletes to schools.
• Family roles: parents managing children's earnings.
• Fairness: income gaps between star and other athletes.

Stakeholders

Stakeholder	Interests & obligations
High school athletes	Income, opportunity and protection.
Parents and guardians	Managing deals and their children's interests.
Schools and state associations	Eligibility, recruiting and educational mission.
Brands and agents	Marketing opportunities.
Teammates	Team cohesion and fairness.
Colleges	Recruiting and eligibility rules.

The case

In 2021, after the Supreme Court’s decision in NCAA v. Alston and state laws such as California’s Fair Pay to Play Act, the NCAA allowed college athletes to profit from their name, image and likeness.^[1] Pressure followed for high school athletes to have the same opportunity.^[4]

Background

The high school question grew directly out of the college fight. California’s Fair Pay to Play Act, signed by Governor Gavin Newsom in September 2019, generally allowed college athletes in the state to be paid for use of their name, image and likeness, and other states followed.^[1] The NCAA adopted NIL policies across all three divisions on June 30, 2021.^[1] Once college athletes could earn, high school recruits became potential endorsers too. In Oregon, eleven days after the state association changed its rules, a local apparel company signed two high school basketball players who had committed to the University of Oregon, the state’s first high school NIL deals.^[1][3]

The rules and governance

No single body governs high school NIL. State high school athletic associations set eligibility rules, and state legislatures can override or supplement them.^[1][4] The result is a patchwork.

Some states never banned endorsements outright. California’s interscholastic federation had two long-standing bylaws that barred students from wearing a school uniform or insignia in advertising. They also barred students from lending “his/her name and team affiliation” for commercial endorsement. But the second bylaw added that it was “not intended to restrict the right of any student to participate in a commercial endorsement provided there is no school team or school affiliation.”^[7] In August 2022 the commissioner of the CIF Southern Section reminded schools of those rules as high school deals spread. Students could “promote/advertise products as individuals, not affiliated with a high school,” but could not wear “any item identifying a student with a high school.”^[7]

Missouri took a different path, by statute. A 2023 law lets high school athletes discuss NIL compensation only in talks about enrolling at a college in Missouri. They may earn it only after signing a letter of intent or other written agreement to enroll at one.^[1][5] The law says such deals do not violate high school eligibility rules.^[5] In effect, a top Missouri recruit can be paid before college only by committing to stay in the state.

Other legal regimes also apply. Athletes and their families must deal with varying state tax rules, and Indiana’s guidance tells parents to check labor law and college eligibility.^[1][4] Congress has seen several bills proposing national standards for NIL, but none had replaced the state system.^[1]

Early deals

In May 2022, Nike signed its first high school NIL deal, with two soccer players.^[1][2] Other brands followed with deals for prominent high school basketball and track athletes.^[1] State associations adjusted their rules so athletes could sign deals without losing eligibility; Oregon’s association approved NIL on October 10, 2022.^[1][3]

Oregon’s rule

Oregon’s change shows how associations wrote limits into the new permission. The Oregon School Activities Association’s delegate assembly adopted the rule unanimously on October 10, 2022, effective immediately.^[3] It set four core restrictions. Deals could not be tied to performance, such as scoring a set number of points. They could not be used as an inducement or recruiting tool. Pay could not come from the school or its agents, including employees and booster clubs. And students had to disclose any proposed deal to their school.^[3] Students could not use school names, mascots, logos or facilities, or game or practice film, and could not promote products during sporting events. Families were “encouraged to seek legal counsel and tax advice.” Banned categories included alcohol, vaping, cannabis, gambling and sports betting, weapons, and political candidates.^[3] A separate rule kept the line on professionalism: signing a professional contract in a sanctioned sport still ended a student’s amateur status.^[3]

Indiana’s rule

On May 4, 2026, the Indiana High School Athletic Association’s board voted 13–5 to add a “Personal Branding Activity” rule, becoming the 43rd state to adopt high school NIL rules.^[4][6] Its commissioner said the rule “keeps high schools out of arranging funding deals,” distinguishing it from the college system.^[4]

The rule text shows where the lines fall.^[6] Students may build and earn money from a personal brand through social media, appearances and endorsements “unrelated to their school athletic participation.” They may also be paid for non-athletic services such as tutoring or coaching youth sports. They may not use the school’s name, nickname, mascot, logo, uniform or facilities. They may not promote gambling, alcohol, tobacco, cannabis, banned substances, sexually explicit material, or firearms.^[6] Two bans target the college model directly. Students may not take benefits from collectives working for a member school, and no deal may be used “to entice a student to attend a particular high school for athletic purposes.”^[6]

Students must notify their athletic director in writing within 48 hours of signing. Schools may review deals but “may not prohibit compliant activities,” and must teach students the rules every year. Families are responsible for checking college eligibility, tax and employment obligations. A violation can cost up to 365 days of eligibility in the sport.^[4][6]

Aftermath

By mid-2026, Indiana’s vote left a minority of states without high school NIL rules.^[4] The approaches that had emerged differ in kind. California-style rules separate the athlete from the school. Missouri ties pay to a college commitment within the state. Indiana’s rule spells out permitted and banned categories, and it adds anti-recruiting and anti-collective provisions.^[5][6][7] Whatever the model, the main enforcement tool remains high school eligibility. A student who breaks the rules risks the ability to play, not a fine.^[6][7]

The core dilemma

Should teenagers be allowed to earn money from their athletic fame, and if so, how should adults protect them from exploitation?

Competing values

Athletes’ rights to their own image compete with protection of minors. Economic opportunity competes with the educational mission of school sports. Freedom of contract competes with preventing recruiting abuses. Individual earnings compete with team cohesion.

Strongest arguments

For high school NIL: Athletes, like other teenagers who act or model, should be able to profit from their own image; prohibitions push deals underground and penalize families who need income.^[1][4]

Against or for strict limits: Minors are vulnerable to pressure from agents and boosters, deals may become recruiting tools, and money may distort school sports.^[4]

Applying the frameworks

Justice

A justice lens asks whether it is fair that schools, events and media can profit from teenage athletes’ popularity while the athletes themselves cannot. It also asks about distribution: NIL money flows mainly to a few stars in high-profile sports, which may widen gaps between athletes and between schools in different states.

Ethics of care

The care lens focuses on minors’ welfare. Contracts, publicity and money can bring pressure from adults, including parents, agents and boosters, and expose teenagers to online attention. It favors protections such as parental involvement, independent advice, limits on certain products, and schools staying out of deal-making.

Rights

A rights lens emphasizes that young people have a legitimate interest in their own name and image, as child actors and musicians do. Restrictions must be justified by protection, not by a desire to keep athletes amateur. Laws such as Missouri’s, which tie NIL to in-state college choices, raise questions about whether minors’ choices are being steered by state interests.

Walk it through: the Simple Decision Model

1. Spot the issue. You are a high school athletic director in a state that has just allowed NIL. A star player’s family brings you a deal from a local business. The stakeholders include the athlete, the family, teammates, the school, the business, the state association and future colleges. The codes in play are the association’s NIL rules, state law and school policies.
2. Gather facts. What does the deal require? Does it use school marks? Does it come from a booster connected to recruiting? Has it been reported on time?
3. Test options. Options: (a) approve as compliant; (b) ask for changes to protect the student; (c) refer it to the state association. Weigh the student’s right to earn against risks to the student and to fair competition.
4. Check codes and law. Are you treating this athlete the same as others? Are you avoiding any appearance that the school is arranging the deal?
5. Decide and document. Record the review and your guidance to the family.
6. Communicate and follow up. Communicate the rules clearly to all athletes and parents, and provide education on contracts, taxes and online safety.

What’s settled and what’s contested

Settled: College NIL began in 2021; companies have signed high school athletes; and most states now permit some high school NIL with limits.^[1][2][4]

Contested: How to protect minors, whether rules prevent recruiting abuses, and how to enforce state-by-state differences.^[4]

Why this case matters

High school NIL extends a major shift in college sports to minors. It tests whether rules can give young athletes economic rights while protecting their education, well-being and team experience.

Key terms

Agency

An athlete’s ability to make decisions and act independently about their body, career and voice.

Parental pressure

Emotional, financial or behavioral pressure from parents. The key question is when guidance becomes exploitation.

Commercialization

The process of turning sport into a product and a business enterprise, with profit pressures that can compete with principle.

Duty of care

The responsibility of coaches, organizations and institutions to protect the health, safety and well-being of those in their charge. It is not a license for total control.

Definitions from the Ethics Cases glossary.

Discussion questions

1. Should minors be allowed to profit from their athletic fame? Why or why not?
2. Who should protect high school athletes from exploitative deals?
3. Should schools be barred from involvement in NIL deals?
4. Does NIL change the purpose of school sports?
5. How might NIL affect teammates who earn nothing?

Sources

1. Student athlete compensation — Wikipedia
2. Nike signs sister soccer players to company's first high school name, image and likeness deal — ESPN
3. OSAA approves changes to NIL rules for high school student-athletes — Portland Tribune (archived)
4. Indiana Becomes the Latest State to Approve NIL Rules for High School Athletes — Sports Illustrated
5. RSMo § 173.280: Compensation of student athletes (subsection 16, high school athletes) — Missouri Revisor of Statutes
6. IHSAA Board of Directors, 2026 Annual Meeting minutes (May 4, 2026), Rule 5-7 Personal Branding Activity — Indiana High School Athletic Association
7. A Message from the Commissioner: NIL (Aug. 23, 2022) — CIF Southern Section