; and (B) the agreement between the institution of higher education and the third party is not initiated or coordinated by the institution of higher education. (5) Institution-sponsored competition and practices (A) In general Except as provided in subparagraph (B), an institution of higher education may require a college athlete to use, during a competition or practice sponsored by the institution of higher education, apparel selected by the institution of higher education. (B) Exceptions (i) Activities other than mandatory team activities An institution of higher education may not prohibit, and may not enter into a contract that prohibits, a college athlete from carrying out activities pursuant to an endorsement contract during a period in which the college athlete is not engaged in a mandatory team activity. (ii) Footwear An institution of higher education may not prohibit or discourage a college athlete from wearing footwear of his or her choice during mandatory team activities, unless the footwear has lights, reflective fabric, or poses a health risk to the college athlete. (6) Treatment of compensation, benefits, or royalties provided to college athletes Covered compensation or commercial sports revenue royalties— (A) shall not be considered financial aid by any institution of higher education, intercollegiate athletic association, conference, or third party