Guidelines for college athletes to profit from name, image, likeness in state budget

Pennsylvania’s college student-athletes now have the ground rules to profit off of their name, image and likeness for the first time.

Gov. Tom Wolf signed the state’s budget into law Wednesday, and it included language in the school code part of the bill to govern NIL dealings.

According to previous PennLive reporting, the language says that:

“A college student athlete may earn compensation for the use of the college student athlete’s name, image or likeness under this article. The compensation shall be commensurate with the market value of the student athlete’s name, image or likeness. The compensation may not be provided in exchange, in whole or in part, for a current or prospective student athlete to attend, participate or perform at a particular institution of higher education.”

Student-athletes would need to get outside agents to negotiate NIL deals. It also says that schools, conferences and the NCAA cannot stand in their way of an agreement. Additionally, an athlete’s scholarship could not be reduced or revoked based on what he or she might make via an NIL deal.

A royalty clause is found in the bill, as well. It reads:

“A person that produces a college team jersey, a college team video game or college team trading cards for the purpose of making a profit shall make a royalty payment to each college student athlete whose name, image, likeness or other individually identifiable feature is used.”

There are some limitations for the athletes, however. According to the bill, they could not enter agreements with the following industries:

• Adult entertainment products and services.

• Alcohol products.

• Casinos and gambling, including sports betting, the lottery and betting in connection with video games, online games and mobile devices.

• Tobacco and electronic smoking products and devices.

• Prescription pharmaceuticals.

• A controlled dangerous substance.

Student-athletes would also need to provide a copy of their agreement at least seven days prior to its execution to a designated person at their school.

It is believed that college athletes in Pennsylvania could begin profiting off their name, image and likeness July 1 when the state’s new fiscal year begins.

“I think this sets a foundation. It allows our schools in Pennsylvania to not be at a competitive disadvantage for recruiting, and I can tell you it would absolutely make a difference,” Pa. Sen Scott Martin told FOX43. “If Alabama says a kid can come play football here and also do this on the side, that’s going to make a difference. So, the fact that Pennsylvania isn’t placed on that uneven playing field will be helpful.”

The NCAA Board of Governors is expected to approve an interim NIL policy that will apply to college athletes in states without a law to govern those dealings. According to Sports Illustrated, 24 states had passed a NIL law as of Tuesday evening, and Pennsylvania makes 25.

Penn State’s athletic department issued a statement praising the guidelines Wednesday afternoon.

“We are excited the lawmakers in Pennsylvania passed law to allow our students to explore opportunities involving their name, image and likeness,” it read. “This law will give our students the same opportunities that students in states with NIL laws have to receive payment for the use of their name, image or likeness. We have always focused on preparing our students for a lifetime of impact and this new law will allow our students to grow their entrepreneurial spirit which they will carry with them long beyond their time at Penn State.”