Michigan NIL Laws: Rules for College and High School Athletes

Michigan’s NIL Landscape

Michigan’s NIL framework is defined by a stark divide: sophisticated collegiate commercialization versus strict high school prohibition.

Michigan stands at a crossroads in the NIL revolution. With Big Ten powerhouses Michigan and Michigan State competing at the highest level, the collegiate NIL market is mature and professionalized. But Michigan remains one of the few states still prohibiting high school NIL. Here’s the complete guide to Michigan NIL laws.

Public Act 366 of 2020 — College NIL Foundation:

• Signed by: Governor Gretchen Whitmer
• Effective: Core provisions December 31, 2022 (activated early July 2021)
• Protects athletes from institutional penalties for NIL earnings
• Scholarships cannot be reduced or revoked based on NIL
• Athletes can hire agents and attorneys for NIL contracts

House v. NCAA Settlement (2025):

• Direct revenue sharing authorized (~$20.5-22M annual cap)
• Roster limits replace traditional scholarship limits
• Effective July 1, 2025
• Creates ~$27M budget impact for Michigan Athletics

High School Status — Still Prohibited:

• MHSAA Regulation I, Section 11 enforces strict amateurism
• Awards capped at $40 retail value
• House Bill 4816 passed House (October 2023) but stalled in Senate
• Michigan remains one of few states prohibiting high school NIL

Why Michigan Matters:

Michigan and Michigan State are Big Ten powerhouses with massive athletic budgets and passionate fanbases. The University of Michigan’s national championship run demonstrated the power of NIL retention strategies. Michigan’s collegiate framework shapes the national conversation on revenue sharing.

Michigan College NIL Rules

Michigan college athletes have strong NIL protections under Public Act 366, with revenue sharing now authorized under the House settlement.

What Public Act 366 Guarantees:

• Athletes can earn compensation from NIL without losing eligibility
• Schools cannot uphold rules preventing NIL participation
• Scholarships cannot be revoked, reduced, or canceled based on NIL
• Athletes can hire agents and attorneys for NIL contracts
• NIL rights codified as protection against institutional retaliation

Revenue Sharing (House Settlement):

• Schools can share ~22% of average Power 4 revenue with athletes
• $20.5-22 million annual cap per institution
• Funds come from ticket sales, media rights, sponsorships
• Roster limits replace traditional scholarship caps
• Effective July 1, 2025

University of Michigan NIL Infrastructure:

• Champions Circle: Official Partner collective with university IP rights
• Valiant Management Group: Agency handling marketing, events, group licensing
• “One More Year Fund”: Retention campaigns for key players
• Walk-On Fund: Financial support during roster limit transition
• Block M logo integration in collective branding

Michigan State NIL Infrastructure:

• Spartan Dawgs 4 Life (SD4L): Primary collective (with past volatility)
• Student Athlete Score: Analytics platform for brand readiness
• NIL Elite Student-Athlete Program: Financial literacy and life skills focus
• Data-driven, education-first approach

Michigan High School NIL Rules

Michigan high school athletes are currently prohibited from NIL activities under MHSAA rules. Michigan remains one of the few states that has not legalized high school NIL.

Key Facts:

• Governing Body: Michigan High School Athletic Association (MHSAA)
• Status: Prohibited
• Framework: Regulation I, Section 11 (Amateur Status)

MHSAA Regulation I, Section 11:

A student loses amateur status (and eligibility) by:

• Accepting money or valuable consideration for participating in athletics
• Capitalizing on athletic fame for compensation
• Accepting cash, checks, merchandise, or in-kind benefits tied to athlete identity
• Only exception: Symbolic awards (trophies, medals) capped at $40 retail value

Additional MHSAA Restrictions:

• Ban on non-sanctioned “All-Star” contests and “National Championship” events
• Violation can result in up to one year of ineligibility
• Recruiting inducement rules strictly enforced

House Bill 4816 (Pending Legislation):

• Passed Michigan House (October 2023) with bipartisan support
• Stalled in Senate Committee on Oversight
• Would prohibit MHSAA from enforcing NIL bans
• Includes guardrails: parental consent, pay-for-play ban, vice restrictions
• Legislative activity continuing into 2025 session

College vs. High School: Key Differences

Feature	College (PA 366)	High School (MHSAA)
NIL Status	Fully Legal	Prohibited
Revenue Sharing	$20.5-22M cap	Not applicable
Third-Party NIL Deals	Allowed	Prohibited
Collectives	Integrated/Official	Not applicable
Agent Representation	Allowed (codified)	Not applicable
Maximum Award Value	Unlimited	$40 (symbolic only)
Pay-for-Play	Prohibited	Prohibited

The Key Distinction:

Michigan has one of the sharpest divides in the country. College athletes operate in a professionalized, revenue-sharing environment with integrated collectives. High school athletes are completely prohibited from NIL—even a $50 gift card would result in ineligibility. HB 4816 could change this, but remains stalled in the Senate.

What Michigan Athletes Can Do

College Athletes:

• Receive direct revenue sharing from institution
• Sign endorsement deals with brands
• Monetize social media accounts
• Earn from camps, clinics, and training
• Sell autographs and merchandise
• Make paid personal appearances
• Hire agents and attorneys for NIL contracts
• Participate in collective-organized NIL programs
• Participate in group licensing deals
• Receive in-kind compensation (housing, vehicles with NIL services)
• Receive fan support through platforms like RallyFuel

High School Athletes:

• Accept symbolic awards up to $40 retail value
• Participate in sanctioned MHSAA events
• NO commercial NIL activity permitted

What Michigan Athletes Cannot Do

College Athletes:

• Cannot accept pay-for-play (performance bonuses)
• Cannot accept recruiting inducements
• Cannot hide NIL contracts from school
• Cannot sign deals conflicting with school sponsorships

High School Athletes:

• Cannot accept ANY money or valuable consideration for athletics
• Cannot capitalize on athletic fame for compensation
• Cannot accept merchandise, in-kind benefits, or gifts tied to athlete identity
• Cannot participate in non-sanctioned All-Star or National Championship events
• Cannot accept awards exceeding $40 retail value
• Violations result in immediate loss of MHSAA eligibility

Both:

• Must pay taxes on any compensation (Michigan 4.25% state income tax)
• Must maintain academic eligibility
• Cannot accept pay-for-play or recruiting inducements

Compliance Requirements

For College Athletes:

• Disclose all NIL contracts to your school’s compliance office
• Report deals $600+ through clearinghouse for fair market value verification
• Check for conflicts with existing school/conference sponsorships
• File taxes on all NIL income (expect 1099 for $600+)
• Track physical location when performing NIL activities (for tax apportionment)
• Be aware of Detroit city income tax (2.4% residents / 1.2% non-residents)
• Follow collective guidelines if participating

For High School Athletes:

• Do NOT accept any money or valuable consideration for athletics
• Ensure all awards are symbolic and under $40 retail value
• Do not participate in non-sanctioned All-Star events
• Avoid any activity that could be considered capitalizing on athletic fame
• Violations result in immediate and potentially year-long ineligibility

For Parents:

• For college: Review all contracts before your athlete signs
• Understand tax obligations (Michigan 4.25% + federal + self-employment)
• Set aside money for taxes (30-40% of gross earnings recommended)
• For high school: Ensure compliance with MHSAA Regulation I
• Understand that escrow/deferred compensation models may still violate MHSAA rules
• Consider consulting an attorney for significant deals

How Fans Support Michigan Athletes

Michigan has among the most passionate college sports fans in the country—from the Big House to the Breslin Center—and now they can directly support athletes through NIL.

College Athletes:

Platforms like RallyFuel enable Michigan fans to support athletes at:

• Michigan, Michigan State – Big Ten
• Central Michigan, Western Michigan, Eastern Michigan – MAC
• Detroit Mercy, Oakland – Horizon League
• Grand Valley State, Ferris State – Division II
• All sports, not just football and basketball

How It Works:

1. Create an account on RallyFuel.com or the mobile app
2. Select your Michigan school affiliation
3. Browse verified athletes currently on your program’s roster
4. Fuel athletes you want to support
5. Track your support through your fan dashboard

How It Works: When you purchase Fan Fuel, you’re purchasing Conditional NIL Engagement Rights (CNERs). If conditions are met, RallyFuel or its affiliate offers an NIL Agreement to the athlete. If conditions aren’t met—for example, if an athlete transfers—you receive an automatic refund.

Conditional Protection: RallyFuel’s conditional model protects Fan Fuel with automatic refunds if athletes transfer or conditions aren’t met. Michigan fans can support players without financial risk.

Important: Fan support through RallyFuel is voluntary and conditional. Fuel purchases are not charitable donations. RallyFuel is not a guarantor that any athlete will accept an NIL Agreement. Purchasing Fan Fuel does not guarantee athletic performance, playing time, or any specific outcome.

High School Athletes:

Due to MHSAA regulations, Michigan high school athletes cannot currently receive NIL compensation. Even deferred or escrow-based models may violate amateur status rules. Legislative efforts through HB 4816 are ongoing.

Learn More About the NIL Landscape

Name, Image, and Likeness plays an increasing role in college sports, and understanding how it works often requires more than individual articles or news updates.

RallyFuel is a platform focused on NIL-related topics across college athletics. It brings together information about athletes, NIL activity, and the broader structure behind modern college sports, helping readers explore the topic in more depth.

Visit RallyFuel

Frequently Asked Questions

When did Michigan legalize college NIL?

Michigan passed Public Act 366 in 2020 (Governor Whitmer). Core provisions were scheduled for December 31, 2022, but activated early in July 2021 following the NCAA’s interim NIL policy. Revenue sharing under the House v. NCAA settlement became effective July 1, 2025.

Can Michigan high school athletes do NIL?

No. Michigan remains one of the few states that prohibits high school NIL. MHSAA Regulation I, Section 11 enforces strict amateurism with only symbolic awards up to $40 permitted. House Bill 4816 passed the House in October 2023 but is stalled in the Senate.

Do Michigan athletes pay taxes on NIL income?

Yes. All NIL income is taxable. Michigan has a flat 4.25% state income tax. Athletes also owe federal income tax and self-employment taxes (Social Security/Medicare). Combined, taxes can consume 30-40% of gross earnings. Detroit has additional city income taxes (2.4% residents / 1.2% non-residents).

How can fans support Michigan college athletes?

Fans can support Michigan college athletes directly through platforms like RallyFuel. When you purchase Fan Fuel, you’re purchasing Conditional NIL Engagement Rights (CNERs). If conditions are met, the athlete receives an NIL Agreement. If conditions aren’t met, you receive an automatic refund.

What is Michigan’s revenue sharing model?

Under the House v. NCAA settlement (July 2025), Michigan schools can share ~22% of average Power 4 revenue with athletes, approximately $20.5-22 million annually. This creates a ~$27 million budget impact for Michigan Athletics, including $20.5M revenue sharing plus new scholarship costs.

What are Michigan’s major collectives?

University of Michigan: Champions Circle (Official Partner with university IP rights) and Valiant Management Group (agency). Michigan State: Spartan Dawgs 4 Life (SD4L). Both schools have integrated collectives into official athletic department partnerships.

What happens if an athlete I supported transfers?

If an athlete transfers or selects a different school during the conditional period, you receive an automatic refund to your original payment method. No manual request is required.

Michigan: Where NIL Meets Tradition

With Big Ten powerhouses, integrated collectives, and revenue sharing, Michigan’s collegiate NIL market is among the most advanced in the country. From the Big House to the Breslin Center, Michigan athletes have opportunities that continue to expand.

For college athletes ready to maximize their NIL potential, RallyFuel provides fan-powered support with conditional protection. Explore verified Michigan athletes and start fueling today.