STEVE INSKEEP, HOST:
For about five years now, college athletes have been earning money with name, image and likeness deals, or NILs. Since then, almost every state has set rules for high schoolers. James Farrell from member station WFAE reports on a program to prepare young athletes for deals.
(SOUNDBITE OF ARCHIVED RECORDING)
UNIDENTIFIED ANNOUNCER: [inaudible] .
JAMES FARRELL: In the Second Ward Gymnasium in Charlotte, middle and high school students from North and South Carolina faced off recently in a friendly basketball tournament. They were some of the best players in each state and came for more than just to play. They also got financial and legal advice on something that's affecting student athletes across the country - the opportunity to cash in.
JIM GATEHOUSE: I think that's what NIL is doing. It's allow you to put value on yourself.
FARRELL: That's Jim Gatehouse, a senior at South Mecklenburg High School. He doesn't have a name, image and likeness contract yet, and it's not something he says he's thinking about when he's out on the court. But like the other athletes here, it's hard to ignore the possibility.
GATEHOUSE: Especially going into college, it just stands out more because it's more of a possibility, right? Not a lot of kids in North Carolina get a real NIL deal where they're getting paid or something.
FARRELL: Last school year, only 12 North Carolina high school students signed NIL deals. Most of those were for modest amounts, around $10,000, but one student athlete signed a deal for more than $1 million. This potential for money is changing the conversation in high school sports.
MARVIN WILSON: Right now, we're seeing kids getting six-figure deals in 9th, 10th grade.
FARRELL: That's Marvin Wilson with the Wisdom Foundation, the nonprofit behind this event, where the athletes also learned about contracts, agents and all things NIL.
WILSON: Now it's the wild, wild west, so I want to make sure I stand in the gap and make sure they're understanding what they're getting themselves into. 'Cause money is money, but accountability and management comes with money.
FARRELL: Up in the bleachers, Juanita Estwick (ph) is here with her son. She says NIL deals can be good for high schoolers, as long as they remain focused on academics.
JUANITA ESTWICK: This is a great opportunity for them to put some of that money in their pockets, to invest, to change the trajectory of their lives and to give back to the community.
FARRELL: But the expansion to high school athletes does worry Davis Whitfield. He's with the National Federation of State High School Associations. It advocates for high school sports. He says too much emphasis on money in athletics can hurt a student's development.
DAVIS WHITFIELD: And at the high school level, I think you start to find that the focus then becomes on where do I play and how much money could I potentially make, as opposed to getting a good education and, again, developing the whole person, mind body, soul, spirit.
FARRELL: He says while most states now allow NIL deals for high school students, they also put restrictions in place to keep teams on a level playing field. In many states, for example, a high school can't benefit from a student's NIL deal.
(CROSSTALK)
FARRELL: Back in Charlotte, some of the athletes say NIL deals haven't changed their high school experience, but they all see the potential, especially on social media, says James Wood, a senior at Carmel Christian School.
JAMES WOOD: There are a lot of brands on Instagram trying to grow NIL, looking to get high school athletes. So it's definitely a thought. And it does make you think, like, how to navigate it, but I think it's not too big yet for a lot of kids at high school.
FARRELL: Still, because of the potential for getting an NIL deal, they all want to be ready to navigate any future contracts.
For NPR News, I'm James Farrell in Charlotte.
(SOUNDBITE OF MUSIC) Transcript provided by NPR, Copyright NPR.
NPR transcripts are created on a rush deadline by an NPR contractor. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR’s programming is the audio record.