Utah college athletes seeking to profit from their name, image and likeness must obtain written approval from their school for any transaction over $600. AP Photo/Rick Bowmer, File
Under a bill that received final approval Friday, Utah college athletes seeking to profit from their name, image and likeness would have to seek written approval from their school for any transaction over $600. be.
A policy giving Utah's universities greater control over student-athlete marketing partnerships, known as the NIL deal, will be passed by the state Senate by 21 votes in the final day of the 2024 legislative session after the House passed it with little opposition last month. It was passed with a majority of 7 votes. . The bill now heads to the desk of Republican Gov. Spencer Cox, who said Friday he supports the bill.
The measure would require universities to provide written approval as to whether their agreements with NIL conflict with school policies or standards outlined in the bill.
Starting May 1, student-athletes will be prohibited from promoting alcohol, marijuana, controlled substances, and tobacco products such as e-cigarettes and vapes. Gambling and sports betting are also prohibited, as are “sexually oriented” companies that pay employees for full or partial nudity. Athletes may not promote firearms that they cannot legally possess.
Until this year, Utah remained on the sidelines as more than 30 states passed legislation regulating NIL transactions in light of the National Collegiate Athletic Association's decision to lift its ban on student-athletes using celebrity status in 2021. was. Some of these states have since clashed with the NCAA in court over who has the authority to regulate these transactions.
Rep. Jordan Teuscher, a South Jordan Republican and the bill's lead sponsor, said it's time for Utah lawmakers to legislate what he calls the “Wild Wild West” of support for student athletes.
The policy brings Utah in line with the NCAA's requirement that players notify schools about large NIL deals, but goes a step further in requiring schools to sign those contracts. Opponents argue that neither universities nor states should have a say in NIL agreements because they are between students and third parties.
The high cost of some local NIL deals becomes clear in December 2023, when University of Utah basketball players and gymnasts begin flocking to class in flashy new Jeeps and RAM trucks that sell for more than $40,000. Became. The students were offered vehicle leases through a NIL agreement with a company called Crimson Collective.
Utah Tech University Administrator Henry Walton, who spoke to the Legislature on behalf of the state universities, said the universities were “pleased” with the bill.
Teuscher's Senate co-sponsor, Republican Sen. Chris Wilson of Logan, said Friday before the vote that a provision that would make NIL agreements no longer public record would allow Utah schools to compete in recruiting. He said his abilities would be protected. Wilson, a business owner who has negotiated many NIL contracts, said companies may be less inclined to enter into such contracts if they are public.
The governor agrees, telling reporters Friday night that while he hates what the NIL agreement has done to college sports, he will help Utah schools remain competitive amid changing circumstances. He said he thought it was necessary.
“The NIL is kind of the law of college sports right now, so we have to be able to participate in it,” Cox said. “Our universities … have to be able to play in the same sandbox. If other states don't have to lift those terms, we're at a huge competitive disadvantage. .”
But critics of the bill argue that the public records exemption undermines transparency and regulatory efforts. The bill would reverse the State Records Commission's ruling that NIL contracts become public records when shared with universities.
“If the government is going to try to regulate these private agreements, the public has an interest in making sure the government is fulfilling its regulatory function,” said Jeff Hunt of the Utah Media Coalition, a coalition of news organizations. ” he said.
Another opponent, Sen. Kathleen Reeve, D-Cottonwood Heights, who voted against the bill on Friday, said the move came after years of state universities profiting from student-athletes. , are reluctant to limit student-athletes' ability to benefit from their accomplishments.
Earlier Friday, NCAA President Charlie Baker announced that the NCAA's Board of Governors has directed its enforcement staff to cease all investigations into booster organizations and other third parties that have NIL contracts with Division I athletes. He said he did. The move comes after the NCAA lost another legal battle in which a federal judge in Tennessee temporarily blocked enforcement of a rule that prohibits third parties from paying money to recruits who attend certain schools. It took place a week later.
A new NCAA policy approved in January encourages athletes to report all NIL transactions and allows organizations to build their own databases, which increases transparency and keeps students informed. They say they will be able to make informed decisions.
The NCAA, which represents about 1,100 schools and more than 500,000 athletes, also wants to create a registry of agents and companies that work with student-athletes to better protect them from predatory business practices. .
