Challenging The NCAA’s Authority

We have seen the changes, drama, and confusion that have ensued in the collegiate space as well as the high school space surrounding Name, Image, and Likeness since its launch on July 1, 2020, by the NCAA. The guidelines put out by the NCAA caused major controversy immediately upon their release, leading individual states to begin enacting their own laws to govern NIL. State representatives have actively worked to put new laws in place to provide more clarity for their collegiate athletes. Some examples of states that have written their own laws include Florida, Missouri, Colorado, Texas, Oklahoma, New York, Arkansas, Delaware, and Michigan.

Eccker Sports has tracked the changes in these state laws in order to provide proper summaries and documentation of the latest NIL legislative developments.

Florida: House Bill 7-B allows third parties and booster clubs to contribute to a student-athletes NIL and allows colleges and universities to guide compensation to their student-athletes. An interesting part of this bill to note states that the staff at the colleges and universities will not be held liable for any damages to a student-athletes ability to be compensated for their NIL. This law was passed on February 17, 2023, and aims to decrease restrictions and increase access for student-athletes who are involved in NIL..

Missouri: House Bill 417 was passed on May 5, 2023. This bill is one of the more relaxed bills regarding student-athletes and their in-state colleges/universities. The bill prohibits the NCAA from performing school investigations for perceived NIL violations. Additionally, school employees and officials can assist student-athletes in navigating their NIL deals. This bill also states that high school athletes that are in the state can be immediately eligible for NIL compensation if they commit to an in-state school.

Colorado: Senate Bill 23-293 states that outside entities such as collectives, can participate in a student athlete’s NIL journey with no penalty. This bill breaks down walls for outside organizations to have more access to players in the universities’ athletic programs monetarily.

Texas: House Bill 2804 is to go into effect on July 1, 2023, if it receives over 80% approval from the legislators and passes. If the bill passes without a supermajority, then it will go into effect on September 1, 2023. This bill is similar to Arkansas and Oklahoma’s bills, which state that school officials, employees, third-party organizations, and fundraiser organizations such as collectives can participate in the university’s student athletes’ NIL experience without penalty.

Oklahoma: Senate Bill 840 is very similar to the Texas bill with a few key differences. The bill allows outside parties and fundraising organizations to support the universities and colleges NIL efforts with student-athletes. This bill also allows institutions, coaches, and officials to assist in the students’ NIL journey. The bill goes a few steps further by clarifying that colleges and universities are allowed to receive compensation for the use of their school’s logos or facilities in correspondence with NIL activities. However, students can not secure NIL deals based on using the school’s logo. Financial literacy classes will be required for students as well.

New York: Senate Bill S5891F is standard in specifying that collegiate student-athletes can monetize on their NIL. However, there is a unique addition to this bill that taps into more than just compensation for a student’s NIL by adding student distress funds for Division 1 student-athletes in times of financial hardship. This allows Division 1 athletes to tap into their school’s funds for payments in times of need. The bill does not prohibit outside sources or fundraising organizations from participating in these efforts or what constitutes “financial distress”.

Arkansas: House Bill 92-1. This bill allows high school athletes who have signed letters of intent to participate in collegiate athletics to monetize on their NIL. The bill gives state schools an opportunity to recruit on the same playing field as other collegiate athletic programs. Additionally, school foundations and third-party organizations are allowed to participate in facilitating student-athlete NIL deals.

Delaware: Senate Bill 297 allows athlete agents for student-athletes to be classified as part of the university. These agents do have restrictions and rules to follow, and are required to provide the secretary of state with data and warning language used in any documents for their student-athletes. This bill allows student-athletes to benefit from their NIL but goes a step further in what those benefits include.

Michigan: House Bill 5217 is very similar to Colorado’s NIL law in how it preserves the student-athlete’s right to monetize on their NIL at the collegiate level. The primary separator is that this bill doesn’t coincide with the NCAA’s rules at the same level, thus giving more leeway to student-athletes and universities/colleges with collectives and outside funding.

Eccker Sports will continue to track and update you on the state changes to come as part of our mission to provide the most up-to-date and accurate information possible. We hope this provides you with more clarity as you navigate the ever-changing journey that is name, image, and likeness.