NIL glossary
What is fair market value in NIL?
Fair market value is the price a willing buyer and seller would agree to for a deal, and in NIL it is the idea behind NIL Go's range-of-compensation test and many state and high school rules that NIL pay must reflect the athlete's actual value.
On this page
In detail
The College Sports Commission's range-of-compensation test asks whether pay from an associated entity is commensurate with what similarly situated people with comparable NIL value are paid. Pennsylvania's college law requires NIL pay to be commensurate with market value, and Michigan's high school rule ties its no-cap policy to fair market value. Executive Order 14400 treats payments above fair market value tied to athletics as fraudulent NIL schemes. Products received as payment are also taxable at fair market value.
Frequently asked questions
Does NIL Go set a fair market value for each athlete?
Not a single number. It applies a deal-level range-of-compensation test to deals with associated entities and individuals.
Sources
- Student-Athlete NIL Deals — College Sports Commission
- Frequently Asked Questions — College Sports Commission
- Executive Order 14400, Urgent National Action To Save College Sports — U.S. Government Publishing Office
- Name, Image, Likeness (Personal Branding Activity) — Michigan High School Athletic Association
This is general information, not legal advice. NIL rules differ by state, school, association and sport, and they change often. Check the official sources linked on this page and talk with your school's compliance office, your state association or a licensed attorney before you sign anything.