The landscape of college athletes continues to shift as more support goes behind student-athletes being given the right to earn royalties off their name, image and likeness (NIL) across the country.
Two big steps happened Wednesday that will impact Pa. student athletes. The first was Governor Tom Wolf first signed legislation that would allow college athletes to earn compensation for their NIL. The new law is effective immediately and requires anyone who sells items that use the likeness of a college athlete to make a royalty payment to said athlete.
Such items would include likeness in video games, jerseys, T-shirts, trading cards and other merchandise sold to college sports fans. The law also provides that the NCAA cannot bar an athlete from obtaining professional representation from entities such as agents, advisors or attorneys.
The second big step was announced by the NCAA just hours later from their headquarters in Indianapolis, In., where its board of directors voted to allow all college athletes in its three divisions to benefit from their NIL. In Pa., and the other 24 states like it that have passed NIL legislation, student athletes can follow the law of the state where they're enrolled. In states that have yet to enact NIL legislation, the NCAA has approved that students can participate in NIL activities and benefits so long as they adhere to the NCAA NIL policies.
“This is an important day for college athletes since they all are now able to take advantage of name, image and likeness opportunities,” NCAA President Mark Emmert said in a statement released Wednesday. “With the variety of state laws adopted across the country, we will continue to work with Congress to develop a solution that will provide clarity on a national level. The current environment — both legal and legislative — prevents us from providing a more permanent solution and the level of detail student-athletes deserve.”
The NCAA's decision comes a little more than a week after the Supreme Court of the United States handed down a unanimous decision against the NCAA in NCAA v. Alston that included a concurring opinion by Justice Brett Kavanaugh which scorched the organization for its players not profiting while their sports product produced billions of dollars. You can read my talking point about how just how grave the NCAA's misstep was in that case here.
The Pa. law signed by Wolf still prohibits colleges from arranging third-party NIL-related compensation and representatives of colleges from also representing a student-athlete of that college in any business arrangement.
Student-athletes also have restrictions to NIL benefits, such as not being allowed earn compensation from companies tied to alcohol, tobacco, electronic cigarettes, prescription drugs, gambling and adult entertainment. Athletes who wish to enter a contract with a company are required to provide seven days notice before the start of the deal to a school official.
As the landscape in college sports continues to change in regards to NIL benefits and compensation, universities will have to adapt to how this might motivate athletes' decisions to choose different programs, as well as when to stay or prepare to become a professional athlete.
Pitt announced its own NIL program Wednesday titled "Forged Here." The program is designed to aid student-athletes in their efforts to take advantage of new NIL opportunities by helping leverage partnerships both local and national. The program will help them develop brand identity, help with business education, financial literacy, wealth management, entrepreneurship and social media proficiency.
“As it relates to providing our student-athletes with the most extraordinary experience at Pitt, our goal is to be progressive, innovative and helpful in every aspect of their student-athlete experience and the world of name, image and likeness is no different,” said Pitt Director of Athletics Heather Lyke in a statement released Wednesday. “We look forward to helping our student-athletes learn more about this topic and build a transparent relationship with them and their families so we can assist in their efforts or aspirations to maximize compensation and opportunities involving their name, image and likeness.”
Lyke is scheduled to speak tomorrow at 11 a.m., and Jeff Capel is scheduled at noon.
