‘A phenomenal day.’ Bill allowing student athletes to profit from NIL deals is now law
It was a banner day for college student-athlete compensation in Kentucky.
Coaches and administrators from many of the state’s Division-I schools — including University of Kentucky women’s basketball star Rhyne Howard — joined Gov. Andy Beshear in Frankfort to sign a bill that codified student-athletes’ right to profit from Name, Image and Likeness agreements.
Student athletes in Kentucky previously were able to make money from NIL because of an executive order Gov. Andy Beshear signed last summer. Senate Bill 6, sponsored by Max Wise, R-Campbellsville, and Morgan McGarvey, D-Louisville, set up a statewide framework for student-athletes to profit from NIL.
Aside from allowing the agreements to take place, the law gives colleges and universities the ability to put reasonable restrictions on NIL and grants those institutions immunity from potential lawsuits related to NIL. The law also requires universities to educate student athletes on contracts, negotiations and potential tax implications of contracts.
Howard, fresh off the program’s historic run at the SEC women’s basketball title, said that more financial education for athletes will be a good thing.
“I definitely think it will help with financial literacy,” Howard said. “… This is a great step because if you’re making a lot of money you don’t want to just spend it all. It can help you for life after college.”
Speakers at the event also included UK men’s basketball coach John Calipari, University of Louisville women’s basketball coach Jeff Walz, as well as McGarvey and Wise.
Calipari called the law “model legislation” and emphasized that there were adequate protections for student athletes, coaches and administrators included.
Wise, whose mother was head coach of Campbellsville University for 32 years, called for the federal government to take action on the matter. He also said the law may help retain student athletes who consider leaving college to go professional.
“This is a phenomenal day for our student athletes. This will allow flexibility… I also think it’ll be beneficial for those student athletes who may be teetering on making the decision whether to make the jump (to turn pro) or to stay put,” he said. “It’ll help those families and student athletes achieve their dreams and still be on the track to attaining a college degree.”
The law also outlines products that student athletes cannot endorse, like illegal products and sports betting.
Northern Kentucky University men’s basketball coach Darrin Horn said that several of his student athletes have entered NIL deals. The law will play a pivotal role in all programs and all sports in Kentucky, Horn said.
“The important thing about this bill is it’s for all student athletes. Sometimes people look at just Louisville and Kentucky, and maybe just football and basketball, and think about it being big numbers. It’s also the opportunity for every program’s student athletes — the Northern Kentucky and Western Kentucky’s of the world — to be able to benefit in the same way,” Horn said.
