Virginia signs NIL law allowing universities to directly negotiate with players

Thursday morning, Virginia governor Glenn Youngkin signed into law legislation permitting Virginia’s universities to directly sign student-athletes to Name, Image, and Likeness (NIL) deals, a development that could spell massive changes across college athletics.

The NCAA currently prohibits schools from directly paying players, meaning most NIL money is raised and distributed through third-party organizations called collectives. For example, many of the University of Alabama’s NIL resources are distributed through Yea Alabama, which is not directly affiliated with UA.

Virginia’s new law, going into effect on July 1, contradicts the NCAA’s rule. The bill will make it illegal for the NCAA to punish schools for “violat[ing] [the NCAA’s] rules or regulations concerning name, image, or likeness.” Schools in Virginia will still not be able to pay players based on their on-field performance, but will be able to use athletic department resources to compensate athletes for appearing in campaigns and promotions.