Bill that would change NIL rules for Oklahoma athletes is winding through the Legislature
A bill that would give Oklahoma’s universities flexibility in dealing with the rapidly changing landscape in collegiate athletics regarding the use of name, image and likeness (NIL) is one vote away from heading to Gov. Kevin Stitt’s desk for signature.
Senate Bill 1786 would allow Oklahoma universities to directly pay student-athletes for NIL use, should conference or NCAA (or NAIA) rules or changes in federal law allow it. The measure sailed through the House Higher Education Committee earlier this week by a 9-0 vote and now awaits a potential vote by the full House. Abegail Cave, a spokesperson for the governor, said “he’s open to supporting Oklahoma’s student-athletes” but said she hadn’t spoken to the governor about the bill.
The bill’s author, Sen. Kristen Thompson, R-Edmond, said the legislation was requested by the University of Oklahoma and Oklahoma State University, the state’s two NCAA Division I public universities. OSU and OU are among many universities nationally dealing with the evolving world of NIL.
“I wouldn’t say anybody is excited about NIL,” Thompson told The Oklahoman. “But ... we do believe that this is the appropriate response. A lot of times in life, we might not like the cards we’re dealt, but those are the cards we have to play and that’s where we are right now.”
Last year, the Oklahoma House and Senate overrode Stitt's veto of Senate Bill 840, which was enacted last May 25. The current law allows collegiate athletes to negotiate NIL contracts without securing licensed agents and prohibited the NCAA from penalizing institutions involving protected NIL activities.
If Senate Bill 1786 becomes law, Oklahoma would join states like Arkansas, Colorado, Missouri, New York and Texas that have introduced or passed similar bills. The new bill's passage also would also give athletic departments the ability to support preferred collectives.
Collectives are groups that assist student-athletes in navigating NIL opportunities by pooling funds from businesses or donors.
The NCAA has struggled to keep up in its rules enforcement as many states have passed NIL laws covering student-athletes within their jurisdictions. But last month, a federal judge in Tennessee allowed current NCAA rules that prohibit schools from using NIL compensation as a recruiting inducement to stand. The attorneys general in Tennessee and Virginia had sued to challenge the NCAA rules.
Congress hasn’t developed a federal NIL law that would supersede any state regulations. However, U.S. Sen. Ted Cruz, R-Texas, told reporters on March 12 that Democrats and Republicans are "close" to a compromise on language in a congressional bill.
Many in collegiate athletics, particularly at the Division I level, see the NIL world as a nebulous and lawless place, and it's seemingly becoming more and more likely college athletes could be deemed employees by a federal judge in the coming months. On Feb. 5, the National Labor Relations Board ruled that Dartmouth University's men's basketball players, who attempted to unionize, are employees of the university.
Thompson said with her bill, even though Oklahoma universities could potentially pay student-athletes directly, student-athletes won’t be considered employees if that happens: “We’re a right-to-work state … so we made sure we weren’t opening ourselves up to unionization.”OU athletic director Joe Castiglione said last month he doesn't feel good about "anything related to the structure because there isn't one. I guess you could say by default, the market has filled the void created by the lack of forward thinking in this space.
“It's created the most chaotic and disruptive environment in the history of college athletics, period. That is indisputable.”
Thompson said that’s why it’s important the state Legislature put in place guidelines during the current session. That way, she said, if more upheaval happens after the session ends, then OU, OSU and the state’s 13 other NCAA-member schools would have a framework in place. The bill is designed to act as a placeholder until NCAA rules surrounding NIL are clarified.
“Our universities need to be able to move quickly,” Thompson said. “They need to be able to be nimble. NIL is kind of the wild, wild West and it’s changing. Every day it is something new. We’re making sure that our universities have the opportunity to respond quickly and appropriately. We want to make sure they have the ability to do what they need to do.”
What rules will the new Oklahoma NIL bill put into place if it passes?
Thompson’s bill says student-athletes in Oklahoma “may earn compensation for the use of the name, image, or likeness of the student athlete while enrolled at a postsecondary institution without penalty or resulting limitation on participation. Compensation for the use of a student athlete’s name, image, or likeness shall not affect the student athlete’s eligibility for athletic grant-in-aid.”
It also allows for a university, or a third party authorized by the university, to “professional representation and compensate or cause compensation to be directed to a current or prospective student athlete for his or her name, image, or likeness if permitted by a collegiate athletics association, of which the postsecondary institution is a member, and institutional policy.”
Additionally, the bill says “a collegiate athletic association,” such as the NCAA, shall not prohibit a university or an authorized third party from “identifying, facilitating, enabling, or supporting opportunities for a student athlete to earn compensation for the student athlete’s name, image, or likeness activities.”
The bill passed 9-2 in the Senate Judiciary Committee and 33-15 in the Senate before being heard this week in the House committee, where it was carried by state Rep. Chris Kannady, R-Oklahoma City.
“It really codifies what our law is in the state,” Kannady said. “Many states have done this … while we await for the NCAA to create some type of rules that apply across the board.”
The Southeastern Conference and Big Ten Conference created a joint advisory board to discuss current issues in college sports on Feb. 2, while the NCAA has proposed a tier of NCAA Division I sports where schools would be required to pay at least $30,000 annually through a trust fund. Until college leaders, the NCAA or Congress find a viable NIL solution, Oklahoma is working proactively, Thompson said.
A spokesman for OSU, Mack Burke, said the university didn’t want to comment about the bill now.
OU did issue a statement about it, though. With the Sooners joining the SEC in July, it's imperative for the program to compete in the NIL landscape. The university's official collective, Crimson and Cream, announced the launch of the $2 Million Membership Challenge in January.
“This bill puts Oklahoma at the forefront of responding to and managing the ever-changing landscape of permissible NIL activity,” the OU statement said. “The proposed changes to the state’s Student-Athlete Name, Image, and Likeness Act will ensure Oklahoma’s universities remain nimble and competitive in serving the interests of student-athletes.
“OU does, and will continue to, abide by current NCAA guidance. The updated language simply provides added flexibility for us to act quickly if and when that guidance changes. We’re thankful to Senator Thompson and Representative Kannady for their leadership and interest in helping OU and the rest of the state’s universities at a time of great change in college athletics.”
This article originally appeared on Oklahoman: Bill to change Oklahoma's NIL law working through Legislature
