Section 8-26B-51
Compensation for use of student athlete's name, image, or likeness.
(a) A student athlete participating in intercollegiate sports at a postsecondary educational institution may earn compensation for the use of the student athlete's name, image, or likeness pursuant to this article. The compensation shall be commensurate with the market value of the student athlete's name, image, or likeness.
(b) Subject to this article and any rule adopted by the Alabama Collegiate Athletics Commission pursuant to Section 8-26B-55, a postsecondary educational institution may not adopt or maintain a contract, rule, regulation, standard, or other requirement that unreasonably restricts a student athlete from receiving compensation for the student athlete's name, image, or likeness.
(1) A postsecondary educational institution may prohibit a student athlete from entering into an endorsement contract with, or otherwise receiving compensation from, any of the following categories of brands or companies:
a. A tobacco company or brand, including any tobacco product, alternative nicotine product, electronic nicotine delivery system, or any electronic nicotine delivery system retailer, or any specialty retailer of electronic nicotine delivery systems or tobacco specialty store, as defined in Section 28-11-2.
b. Any alcoholic beverage company or brand.
c. Any seller or dispensary of a controlled substance, including, but not limited to, marijuana.
d. Any adult entertainment business.
e. Any casino or entity that sponsors or promotes gambling activities.
f. Any entity or individual that, in the reasonable and good faith judgment of the postsecondary educational institution, negatively impacts or reflects adversely on the postsecondary educational institution or its athletic programs, including, but not limited to, bringing about public disrepute, contempt, embarrassment, scandal, ridicule, or otherwise negatively impacting the reputation or the moral or ethical standards of the postsecondary educational institution.
(2) A postsecondary educational institution may also prohibit a student athlete from wearing any item of clothing, shoes, or other gear with the insignia of any entity while wearing athletic gear or uniforms licensed by a postsecondary educational institution or otherwise competing in any athletic competition or institutionally-sponsored event.
(c) Compensation for a student athlete's name, image, or likeness may not be conditioned on athletic performance or attendance at a particular postsecondary educational institution.
(d) Compensation for the use of a student athlete's name, image, or likeness may be provided only by a third party not owned or operating under the authority of the student athlete's postsecondary educational institution.
(e) A postsecondary educational institution, an entity with the purpose of supporting or benefitting the institution or its intercollegiate sports, or any officer, director, or employee of the institution or entity may not compensate or cause compensation to be directed to a student athlete or the family of a student athlete for use of their name, image, or likeness.
(f) Except with the prior written consent of the postsecondary education institution, a student athlete may not enter into a contract for compensation for the use of the student athlete's name, image, or likeness if the institution determines that a term of the contract conflicts with a term of a contract held by the student athlete's postsecondary education institution.
(g) Before any contract for compensation for the use of a student athlete's name, image, or likeness is executed, and before any compensation is provided to the student athlete in advance of a contract, the student athlete shall disclose that contract to his or her postsecondary educational institution in a manner prescribed by the institution.
(h) A contract for the use of a student athlete's name, image, or likeness which is formed while the student athlete is participating in an intercollegiate sport at a postsecondary educational institution may not extend beyond the student athlete's participation in the sport at the institution.
(Act 2021-227, §2.)