The Michigan High School Athletic Association (MHSAA) has amended its regulations to permit high school student-athletes to earn compensation from their name, image, and likeness (NIL), referred to under the MHSAA rules as Personal Branding Activity (PBA).
The change marks a significant shift in Michigan interscholastic athletics and aligns the state with a growing national trend, allowing high school athletes to monetize individual endorsement and branding opportunities.
While the new rule expands opportunities for student-athletes and their families, it also imposes strict limitations designed to preserve amateur competition, prevent recruiting inducements, and insulate schools from NIL activity. Schools, families, businesses, and advisors should understand these boundaries before engaging in any PBA arrangement.
What is Personal Branding Activity?
Under the new MHSAA regulation, PBA includes situations in which a student-athlete receives compensation in exchange for promoting or endorsing a product, service, or brand using the student’s NIL.
Permitted activities may include social media endorsements, appearances, camps or clinics, merchandise sales, modeling, or other individual promotional efforts, provided all MHSAA requirements are satisfied.
PBA opportunities must be individualized and may not be tied to athletic performance, team success, or school affiliation.
Key Limitations on High School NIL Activity
Although the rule authorizes compensation, the MHSAA has established clear guardrails to distinguish permissible NIL activity from prohibited pay-for-play or recruiting inducements. Key restrictions include:
No Pay-for-Play or Performance-Based Compensation
Compensation may not be contingent on athletic performance, statistics, awards, team participation, or competition outcomes. Bonuses tied to scoring, championships, awards, or honors remain prohibited, as does compensation simply for being a member of a team.
No Use of School Identifiers or Facilities
Student-athletes may not use school names, logos, mascots, uniforms, facilities, or other school intellectual property in connection with any PBA activity. Sponsored content must be created independently of the school and outside of any school-related setting or event.
No School or Booster Involvement
Schools, coaches, school employees, booster clubs, and other associated entities or individuals are prohibited from arranging, facilitating, negotiating, or promoting PBA opportunities. Improper involvement may jeopardize student eligibility and a school’s MHSAA membership.
Timing and Location Restrictions
PBA activities may not occur during school hours or while the student-athlete is participating in any MHSAA-related activity, including practices, meetings, games, or tournaments. Sponsored content may not be created or posted from the sidelines, locker rooms, or competition venues.
Prohibited Products and Industries
The MHSAA may prohibit PBA arrangements involving products or industries deemed inappropriate for interscholastic athletics. Prohibited categories include alcohol, tobacco, cannabis, gambling, firearms, performance-enhancing substances, and adult entertainment.
Disclosure and Compliance Obligations
Student-athletes must disclose all PBA agreements to the MHSAA within seven business days of finalizing any such agreement. The association will review disclosures for compliance and may require modifications to preserve eligibility.
There is no cap on compensation, provided the arrangement reflects fair market value and complies with MHSAA regulations and applicable law. Student-athletes and their families remain responsible for tax obligations, employment compliance, and evaluating any potential impacts on collegiate eligibility with the NCAA, NAIA, or NJCAA.
Practical Considerations
The new policy presents opportunities and risks:
- Families should consider engaging experienced legal or financial advisors who are not affiliated with the school.
- Businesses must avoid structuring deals that could be viewed as performance-based or school-connected.
- Schools and coaches should maintain strict separation from PBA activity and avoid informal involvement.
Violations may result in student ineligibility and potential sanctions against member schools.
Impact and Outlook
Michigan’s adoption of high school NIL rules reflects the continued expansion of athlete branding rights across all levels of competition. As NIL regulations evolve, compliance expectations are likely to develop alongside them.
Stakeholders should monitor MHSAA guidance and enforcement trends, particularly as disclosure reviews and interpretations of “associated entities” continue to mature.
For questions regarding NIL compliance, contract review, or policy implementation, contact a member of Varnum’s Name, Image, and Likeness Practice Team.
