North Carolina has quietly become one of the most advanced NIL states in the country. Through landmark litigation, state-backed NIL infrastructure, and early adoption of the House v. NCAA revenue-sharing framework, the state now operates a fully modernized NIL ecosystem—from public high schools to ACC Power 4 programs.
Here’s the complete guide to North Carolina NIL laws.
Table of Contents
- North Carolina’s NIL Leadership
- North Carolina College NIL Rules
- North Carolina High School NIL Rules
- College vs. High School: Key Differences
- What North Carolina Athletes Can Do
- What North Carolina Athletes Cannot Do
- Compliance Requirements
- How Fans Support North Carolina Athletes
- Frequently Asked Questions
North Carolina’s NIL Leadership
North Carolina’s NIL framework is defined by legislation, litigation, and institutional adoption.
“Michael Jordans of Tomorrow Act” (Senate Bill 563)
- Passed: 2023
- Effective: 2024–2025 rollout
- Key Features:
- Creates the NC NIL Clearinghouse within the Department of Commerce
- Offers a 50% tax credit to businesses entering NIL agreements
- Capped at $500,000 per business per year
- Explicitly permits institutional facilitation of NIL
- Clearinghouse reviews deals for fair market value and consumer protection
Brandon v. State Board of Education (2024)
- Filed by the family of Faizon Brandon, a 5-star QB at Grimsley High School
- Challenged the SBE’s temporary ban on public high school NIL
- October 2024: Wake County Superior Court issued a preliminary injunction
- Outcome: Permanent NIL rules adopted
- Effective Date: July 1, 2025
- Ended NIL disparity between public (NCHSAA) and private (NCISAA) athletes
House v. NCAA Settlement (2025)
- Authorizes direct revenue sharing with athletes
- Annual cap: ~$20.5 million per school
- Scholarship limits replaced by roster limits
Football: 105-player cap - 4% annual escalator
- Implementation begins 2025–26 academic year
Why North Carolina Matters
North Carolina combines:
- State-backed NIL infrastructure
- Business tax incentives that keep NIL capital in-state
- Judicial precedent limiting unilateral NIL bans
- Four ACC Power 4 programs with distinct economic models
North Carolina College NIL Rules
College athletes benefit from SB 563’s institutional facilitation model and the NC NIL Clearinghouse.
What the Law Guarantees
- Athletes may earn NIL compensation without losing eligibility
- Universities may facilitate, broker, and review NIL deals
- Athletes may hire agents and attorneys
- NIL earnings do not affect scholarships
- Access to Clearinghouse education and FMV review
- Businesses receive 50% tax credits for NIL spend
What Schools Cannot Do
- Prohibit athletes from earning NIL
- Penalize athletes for lawful NIL activity
- Reduce scholarships due to NIL earnings
- Block athlete representation
What Athletes Must Do
- Disclose NIL contracts to school compliance
- Avoid conflicts with school or conference sponsorships
- Ensure NIL does not interfere with team obligations
- Follow institution-specific compliance rules
Revenue Sharing by Institution
University of North Carolina (UNC)
- Football: ~$13M (~63%)
- Men’s Basketball: ~$7M (~34%)
- Women’s Basketball + Baseball: ~$500K combined
- Remaining sports: scholarship-only model
- ~97% of funds allocated to men’s sports (Title IX concern)
NC State
- Committed to full $20.5M cap
- Men’s Basketball: ~$4M
- Women’s Basketball: $1M (strategic investment)
- Men’s basketball scholarships expanded 13 → 15
Duke University
- Private institution with global basketball dominance
- Men’s basketball generates among the highest revenues nationally
- NIL coordinated via Durham Devils Club and Iron Duke Fund
- Less reliant on football, more on philanthropy
Wake Forest
- Smallest Power 4 alumni base in ACC
- Uses Student-Athlete Enhancement Fund
- AD John Currie: Ticket prices and fees must rise to fund $20.5M
- NIL-linked donations are not tax-deductible
North Carolina High School NIL Rules
Public high school NIL became permanently legal on July 1, 2025.
Key Facts
- Governing Bodies: NCHSAA + State Board of Education
- Status: Legal with strict restrictions
- Framework: Permission with guardrails
What High School Athletes Can Do
- Commercial endorsements
- Social media monetization
- Autograph signings
- Camps, clinics, and academies (paid admission allowed)
- Personal appearances
- Hire agents, attorneys, or financial advisors
Critical Restrictions
1) Intellectual Property (IP) Firewall
High school athletes may not use:
- School names
- Logos or mascots
- Uniforms or jerseys
A single jersey photo used commercially can result in loss of eligibility.
2) Prohibited Industries
- Alcohol, tobacco, vaping, nicotine
- Cannabis and CBD
- Gambling and sports betting
- Weapons and firearms
- Adult entertainment
3) Time & Place Restrictions
No NIL during:
- School hours
Practices or games
Team activities - No NIL filming on school property without rental agreement
Mandatory High School Compliance Workflow
- Complete NFHS NIL Course (student + parent)
- Parent/guardian must co-sign contracts for minors
- Disclose agreement to:
Head Coach
Athletic Director
Principal
Superintendent
Board of Education Chair - AD files agreements with NCHSAA for annual reporting
College vs. High School: Key Differences
| Factor | College (SB 563) | High School (NCHSAA) |
|---|---|---|
| School affiliation in NIL | Allowed | Not allowed |
| Uniform usage | Allowed | Not allowed |
| Agent representation | Explicitly allowed | Allowed |
| Governing body | NCAA + School | NCHSAA + SBE |
| Disclosure required | Yes | Yes (5 officials) |
| Pay-for-play | Prohibited | Prohibited |
| Revenue sharing | Allowed | Not allowed |
Key distinction:
College athletes may leverage school identity with compliance. High school athletes must build NIL entirely separatefrom school branding.
What North Carolina Athletes Can Do
Both College and High School
- Sign endorsement deals
- Monetize social media
- Earn from camps and clinics
- Sell autographs and merchandise
- Create and license content
- Build personal brands
College Only
- Receive direct revenue sharing
- Use school logos and uniforms
- Participate in collectives
- Receive fan support through platforms like RallyFuel
What North Carolina Athletes Cannot Do
College Athletes
- Accept pay-for-play
- Hide NIL contracts from compliance
- Sign deals conflicting with school sponsors
- Accept recruiting inducements
High School Athletes
- Use school logos, names, or uniforms
- Conduct NIL during school or team activities
- Accept pay-for-play
- Endorse prohibited industries
Both
- Must pay taxes on NIL income
- Must maintain academic eligibility
- Must comply with governing body rules
Compliance Requirements
For College Athletes
- Disclose all NIL contracts
- Use NC NIL Clearinghouse when applicable
- Check sponsor conflicts
- File taxes on NIL income
- International athletes (F-1): consult visa services before any NIL
For High School Athletes
- Complete NFHS NIL Course first
- Maintain strict IP firewall
- Disclose to all five required officials
- Avoid prohibited categories
- Keep records of NIL income
For Parents
- Review all contracts
- Co-sign for minors
- Set aside 30–40% for taxes
- Ensure disclosure compliance
- Consider legal counsel for large deals
How Fans Support North Carolina Athletes
North Carolina fans—from Chapel Hill to Durham to Raleigh—can support athletes directly through NIL.
College Athletes
Fans can support athletes at:
- UNC, NC State, Duke, Wake Forest
- East Carolina, Charlotte, Appalachian State
- Davidson, UNC Wilmington, UNC Greensboro
- All sports, not just football and basketball
How It Works
- Create a RallyFuel account
- Select your North Carolina school
- Browse verified athletes
- Purchase Fan Fuel
- Track support via fan dashboard
Conditional Protection:
Fan Fuel creates Conditional NIL Engagement Rights (CNERs).
If conditions are not met (e.g., athlete transfers), fans receive automatic refunds.
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.
Frequently Asked Questions
When did North Carolina legalize high school NIL?
Public high school NIL became permanently legal on July 1, 2025, following Brandon v. State Board of Education.
What is the Michael Jordans of Tomorrow Act?
SB 563 created the NC NIL Clearinghouse and offers a 50% business tax credit for NIL agreements.
Do North Carolina athletes pay taxes on NIL income?
Yes. NIL income is subject to NC state income tax, federal tax, and self-employment tax.
What happens if an athlete I supported transfers?
You receive an automatic refund during the conditional period.
North Carolina: A Fully Modernized NIL State
Through SB 563, decisive litigation, and early adoption of revenue sharing, North Carolina has built one of the most sophisticated NIL ecosystems in the U.S.
For athletes ready to maximize NIL—and fans who want to support players with protection—North Carolina sets the standard.
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