Weekly Column: The Next Frontier of NIL Is High School Sports

In this week’s column, California Sports Lawyer® CEO and Managing Attorney Jeremy M. Evans examines how the NIL marketplace has expanded into high school athletics as the economics of athlete dealmaking continue moving earlier in the pipeline.

Standardized contracts, guidelines, and regulations will be essential to maintaining fairness in the education-athletic system.

You can read the full column below. (Past columns can be found, here).

Sports agents have simply rolled back the proverbial clock in dealmaking with athletes. As name, image, and likeness (NIL) rules have changed for college athletes, their younger athletic counterparts in high school are being recruited and signed earlier. Arguably, some of these business relationships were already occurring, and the legal system has simply caught up to regulate an existing space.

For context, the Supreme Court’s decision in NCAA v. Alston addressed compensation limits for college athletes, not high school players, but its antitrust reasoning has helped fuel broader challenges to restrictions across the amateur sports landscape. California’s Fair Pay to Play Act primarily targeted college athletics, but it also acknowledged that high school students possess name, image, and likeness rights, highlighting how the NIL conversation extends beyond the college level. Therein lies the foundation for legal challenges and change in high school athletics.

The creation of the Overtime Elite league and changes in NBA G-League rules have also driven some high school and college athletes from traditional school teams toward professional or professional-lite opportunities. Social media platforms such as TikTok and YouTube have further fueled the expansion of NIL opportunities, as athletes now control their own broadcast channels and platforms to showcase their skills. International sports markets provide another example. In baseball and soccer, prospects in countries such as the Dominican Republic, Venezuela, and Mexico are often signed as teenagers and placed in development systems before reaching the minor leagues or major league clubs.

Signing athletes under the age of eighteen has long been a practice among professional clubs around the world. In California, the Coogan Act (or “Coogan’s Law,” named after a childhood movie star) offers an important safeguard. Enacted in 1939, the law requires employers to deposit 15 percent of a child performer’s gross earnings into a blocked trust account, commonly known as a “Coogan Account,” protecting those earnings from misuse by parents or guardians. The law applies to minors in entertainment and sports and now extends to child online influencers.

High school athletic associations are beginning to face challenges to their authority as elite athletes develop large social media audiences and clear commercial value. At the same time, eligibility concerns remain. For example, a high school athlete earning money through NIL may later attend college where disclosure requirements and amateurism rules still apply in some form. Definitions and restrictions surrounding what it means to be paid to participate in sports will need greater clarity. Without guidance, eligibility questions will continue to create uncertainty.

Coogan accounts, parental oversight, and strong legal representation will likely become essential tools in helping young athletes navigate contracts and commercial opportunities. A strong off-field team can be just as important as the team on the field. Education in high school and college should remain the priority, and athletes who choose a fully professional path may instead pursue club systems or professional drafts. At present, the NFL remains the only major U.S. league that effectively requires college participation before entry.

NIL rules for high school athletes will likely develop on a state-by-state basis, much like collegiate NIL rules did initially. As a result, high school athletic associations may face some of the same legal scrutiny the NCAA has encountered under antitrust law. Schools and their governing bodies will need to balance commercial opportunity with educational priorities while operating within evolving state law.

Standardized contracts, guidelines, and regulations will be essential to maintaining fairness in the education-athletic system. High school associations should learn from the NCAA’s experience and avoid similar complications. High school should serve as preparation for college, just as college prepares athletes for professional sports. Each stage should ultimately serve as a training ground not only for athletic success, but for life beyond the game.

About Jeremy M. Evans:

Jeremy M. Evans is the Chief Entrepreneur Officer, Founder & Managing Attorney at California Sports Lawyer®, representing entertainment, media, and sports clients in contractual, intellectual property, and dealmaking matters. An award-winning attorney and industry leader, Evans is based in Los Angeles and Newport Beach, California. He can be reached at Jeremy@CSLlegal.com. www.CSLlegal.com.