South Carolina NIL Laws: Rules for College and High School Athletes

South Carolina’s NIL Evolution

South Carolina’s NIL landscape is defined by aggressive collegiate professionalization combined with a strict legislative ban on high school NIL—creating the widest gap between college and high school athletes of any Southeastern state.

South Carolina presents the starkest regulatory bifurcation in the Southeast. At the collegiate level, H. 4957 creates a “sovereign shield” enabling Clemson and USC to directly facilitate NIL and deploy innovative funding models like “Clemson Ventures.” However, South Carolina is one of the few states that PROHIBITS high school NIL entirely—Proviso 1.103 in the state budget effectively bans public school participation in NIL. This places South Carolina high school athletes at a severe disadvantage compared to peers in North Carolina, Tennessee, and Georgia. Here’s the complete guide.

1. 4957 (May 2024) — “Sovereign Shield”:

• Signed by Governor Henry McMaster; codified under Title 59, Chapter 158
• Authorizes universities to directly facilitate NIL opportunities for athletes
• Athletic department staff can identify opportunities, facilitate introductions, provide tax/legal guidance
• Safe harbor: Acts complying with House settlement or state law cannot be penalized by NCAA
• Agent commission cap: 30% maximum for NIL representation
• Suspends previous Act 35 of 2021 (more restrictive guardrails now obsolete)

House v. NCAA Settlement (2025):

• Direct revenue sharing authorized (~$20.5 million annual cap)
• Roster limits replace scholarship limits
• $2.8 billion back damages reduce NCAA distributions to SC schools for next decade
• Effective July 1, 2025

High School Status — PROHIBITED:

• Proviso 1.103 in state budget BANS public school NIL participation
• SCHSL (South Carolina High School League) compelled to amend bylaws to prohibit NIL
• Penalties: Warning (1st offense), 1-year suspension from all league competition (2nd offense)
• South Carolina is one of the FEW states with a complete high school NIL ban

Why South Carolina Matters:

South Carolina creates the starkest bifurcation in the Southeast: colleges pay athletes like professionals while high schools completely ban NIL. This regulatory asymmetry creates “athletic migration” risk—elite talent may relocate to NC, TN, or GA for NIL access. Clemson Ventures represents a first-of-its-kind vertical integration model combining multimedia rights, marketing, and NIL agency under one roof.

South Carolina College NIL Rules

South Carolina college athletes operate under H. 4957’s “sovereign shield” which enables direct institutional facilitation and protects schools from NCAA sanctions.

What H. 4957 Guarantees:

• Universities can directly identify NIL opportunities for athletes
• Athletic department staff can facilitate introductions to commercial partners
• Schools can provide tax and legal guidance on NIL contracts
• Safe harbor protects schools from NCAA penalties for compliant activities
• Agent commission capped at 30%

Clemson University — Vertical Integration Model:

• “Clemson Ventures”: First-of-its-kind integration of multimedia rights, marketing, and NIL agency
• 110 Society (collective) folded into IPTAY and Clemson Ventures operations
• AD Graham Neff: Transition from “fundraising” to “revenue generation”
• Mandatory $150/semester student athletic surcharge ($300/year) generates $7-8M annually
• Breaks long-standing precedent of avoiding student athletic fees

University of South Carolina — Gamecock Revenue Plan:

• $300 annual athletic fee for undergraduates ($150/semester)
• Executive Associate AD Charles Bloom: Funds earmarked for operations/facilities
• Frees primary revenue streams (SEC media rights, premium donations) for $20.5M revenue share
• Garnet Trust: Transitioning from collective to “full-service marketing agency”
• “Cap-plus” model: University pays base salary (revenue share), Garnet Trust facilitates upside deals

The “Consumer-Funded” Era:

• End of “donor-subsidized” era—operational costs now socialized across fan and student base
• “Talent Fee” phenomenon: Direct transfer of wealth from consumer (student/fan) to laborer (athlete)
• Pioneered by Tennessee (10% ticket surcharge), adopted by SC schools via student fees
• Roster is now single largest budget line item

International Student Restrictions (F-1 Visa):

• F-1 visas prohibit off-campus employment including most “active” NIL
• Clemson and USC warn international students to consult international student services first
• Passive income (licensing for video games, jerseys) may be permissible
• Revenue sharing may be classified as “employment”—ISAs potentially excluded
• Last-Tear Poa case (September 2025) may open P-1A visa pathway

South Carolina High School NIL Rules

South Carolina HIGH SCHOOL NIL IS PROHIBITED. Proviso 1.103 in the state budget creates a “poison pill” that forces the SCHSL to ban NIL to preserve member schools’ state funding.

Key Facts:

• Governing Body: South Carolina High School League (SCHSL)
• Status: PROHIBITED by state budget proviso
• Framework: Proviso 1.103 + SCHSL Bylaw Article III, Section 14
• Commissioner: Jerome Singleton

How Proviso 1.103 Works:

The state budget proviso dictates that no public school district supported by state funds may affiliate with any athletic association that “permits, allows, or authorizes” student-athletes to earn NIL compensation. This effectively holds the SCHSL hostage—if the League allowed NIL, every public school in the state would be forced to withdraw to preserve funding.

SCHSL Bylaw Prohibitions:

• No compensation contingent on athletic performance (pay-for-play)
• No compensation as incentive to enroll at a specific school
• No use of school intellectual property in any promotional deal
• “NIL Clubs” (online platforms for paid content) are potential violations

Penalties for Violation:

• 1st Offense: Formal warning
• 2nd Offense: ONE-YEAR SUSPENSION from all league competition
• Use of school logos/uniforms/facilities: Immediate ineligibility

Transfer and Eligibility Restrictions:

Strict transfer policies (Bylaw 6) prevent athletic-motivated transfers. New policy effective July 1, 2025: Middle school students must play at designated feeder high school to establish eligibility—closes “super-team” loophole.

Regional Disadvantage:

North Carolina, Tennessee, and Georgia all permit high school NIL. A prospect in Charlotte, NC can legally monetize their social media. A peer in Rock Hill, SC—less than 30 miles away—risks a 1-year suspension for identical conduct. This creates “athletic migration” risk where families relocate for NIL access.

College vs. High School: Key Differences

Feature	College (H. 4957)	High School (SCHSL)
NIL Status	Fully Legal + Sovereign Shield	PROHIBITED
Institutional Pay	Allowed ($20.5M cap)	Prohibited
Third-Party NIL Deals	Unlimited	PROHIBITED
Institutional Facilitation	Explicitly Allowed	Prohibited
Collectives	Integrated (Clemson Ventures)	Prohibited
School Logos/Uniforms	Allowed	Prohibited
Violation Penalty	NCAA enforcement blocked	1-year suspension (2nd offense)
Pay-for-Play	Prohibited	Prohibited

The Key Distinction: South Carolina presents the STARKEST bifurcation in the Southeast. Colleges operate under a sovereign shield with vertical integration models like Clemson Ventures. High schools are COMPLETELY BANNED from NIL by state budget proviso—one of the only states with a total prohibition. This creates severe regional disadvantage compared to NC, TN, and GA.

What South Carolina Athletes Can Do

College Athletes:

Receive direct revenue sharing from institution; Receive institutional facilitation of NIL deals; Access athletic department tax and legal guidance; 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 (commission capped at 30%); Participate in collective-organized NIL programs; Use school logos and uniforms in NIL content; Receive fan support through platforms like RallyFuel.

High School Athletes:

NOTHING. South Carolina high school athletes CANNOT monetize their NIL in any form while remaining eligible for SCHSL competition. This is a complete prohibition with no exceptions for public school athletes.

What South Carolina Athletes Cannot Do

College Athletes:

Cannot accept pay-for-play; Cannot hide NIL contracts from school compliance; Cannot pay agents more than 30% commission; International students (F-1 visa): Cannot engage in most active NIL—consult international student services.

High School Athletes:

Cannot earn ANY NIL compensation while remaining eligible for SCHSL; Cannot sign endorsement deals; Cannot monetize social media; Cannot operate paid camps or clinics; Cannot sell autographs; Cannot join “NIL Clubs” or paid content platforms; Cannot use school logos, uniforms, or facilities in any promotional context; Violation = formal warning (1st) or 1-YEAR SUSPENSION (2nd).

Both:

Must pay taxes on any NIL income (South Carolina has state income tax + federal + self-employment); Must maintain academic eligibility.

Compliance Requirements

For College Athletes:

Disclose all NIL contracts to school compliance office; Work with institutional facilitation (Clemson Ventures, Garnet Trust, etc.); Verify agent commission does not exceed 30%; Check for conflicts with existing school/conference sponsorships; File taxes on all NIL income (expect 1099 for $600+); International students: Consult international student services BEFORE any NIL activity.

For High School Athletes:

DO NOT engage in ANY NIL activity while eligible for SCHSL competition. There are no compliance requirements because the activity itself is prohibited. Any NIL = warning (1st offense) or 1-year suspension (2nd offense).

For Parents:

For college: Review all contracts before your athlete signs; Verify agent commission ≤30%; South Carolina has state income tax—set aside 30-40% for taxes; For high school: Understand that ALL NIL activity is PROHIBITED for SCHSL eligibility; Consider whether relocation to NC, TN, or GA is viable if NIL is a priority; Consult an attorney if considering options outside SCHSL membership.

How Fans Support South Carolina Athletes

South Carolina has passionate college sports fans—from Death Valley to Williams-Brice—and now they can directly support athletes through NIL.

College Athletes:

Platforms like RallyFuel enable South Carolina fans to support athletes at:

• Clemson University – ACC
• University of South Carolina – SEC
• Coastal Carolina – Sun Belt
• Charleston Southern, Furman, Wofford, The Citadel – Big South / SoCon
• College of Charleston – CAA
• All sports, not just football and basketball

How It Works:

1. Create an account on RallyFuel.com or the mobile app
2. Select your South Carolina 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. South Carolina 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 Proviso 1.103 and SCHSL bylaws, South Carolina high school athletes CANNOT participate in any NIL activity while remaining eligible for SCHSL competition. There are no legal avenues for NIL within the current regulatory framework.

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

Can South Carolina high school athletes do NIL?

South Carolina is one of the few states with a COMPLETE BAN on high school NIL. Proviso 1.103 in the state budget prohibits public school districts from affiliating with any athletic association that permits NIL. The SCHSL was compelled to ban NIL to preserve member schools’ state funding. Violation = warning (1st offense) or 1-year suspension (2nd offense).

When did South Carolina legalize college NIL?

South Carolina’s initial NIL statute (Act 35 of 2021) was enacted in 2021. The current “sovereign shield” framework (H. 4957) was signed by Governor Henry McMaster in May 2024. This law explicitly authorizes institutional facilitation and blocks NCAA sanctions, suspending the more restrictive 2021 law.

What is Proviso 1.103?

Proviso 1.103 is language in the state General Appropriations Bill that prohibits public school districts from using state funds to affiliate with any athletic association that permits NIL. This “poison pill” forces the SCHSL to ban NIL—if the League allowed it, every public school would lose state funding or be forced to withdraw from the League.

Do South Carolina athletes pay taxes on NIL income?

Yes (for college athletes). All NIL income is taxable. South Carolina has state income tax (0-6.5% graduated). Athletes also owe federal income tax and self-employment taxes. Combined, taxes can consume 30-40% of gross earnings.

What is Clemson Ventures?

Clemson Ventures is a first-of-its-kind vertical integration model combining multimedia rights management, marketing, and NIL agency capabilities under one affiliated organization. The 110 Society (previous collective) has been folded into IPTAY and Clemson Ventures. AD Graham Neff describes this as a shift from “fundraising” to “revenue generation.”

What is South Carolina’s revenue sharing model?

Under the House v. NCAA settlement (2025), South Carolina schools can share approximately $20.5 million annually with athletes. Clemson funds this via $300/year mandatory student athletic surcharge ($7-8M) plus Clemson Ventures revenue. USC uses $300/year student athletic fee plus Garnet Trust “cap-plus” model.

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.

South Carolina: The Bifurcation of Amateurism

South Carolina presents the starkest regulatory bifurcation in the Southeast. Colleges operate under H. 4957’s sovereign shield with innovative vertical integration models like Clemson Ventures. Student athletic fees fund the new “consumer era” of athlete compensation. However, high school athletes face a COMPLETE BAN on NIL—Proviso 1.103 holds the SCHSL hostage, creating severe regional disadvantage compared to NC, TN, and GA. This asymmetry is likely unsustainable as pressure mounts on the General Assembly.

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