Utah Legislature Approves Bill Requiring College Athletes to Obtain School Approval for Certain NIL Deals – Sky Bulletin
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SALT LAKE CITY, UT – A new bill that mandates college athletes in Utah to gain written approval from their respective schools for business endorsements exceeding $600 passed its final vote on Friday in the Utah Legislature. The approval came from the state Senate with a 21-7 vote on the 2024 legislative session’s final day, following its previous endorsement by the House. The bill, which now awaits the signature of Gov. Spencer Cox — a supporter of the legislation — aims to give Utah colleges increased oversight over their student-athletes’ Name, Image, and Likeness (NIL) agreements.
The bill requires universities to issue written confirmation on whether NIL agreements conflict with institutional policies or the bill’s stipulations. As of May 1, athletes will be barred from endorsing industries such as alcohol, tobacco, controlled substances, gambling, sports-betting, firearms they cannot legally possess, and sexually oriented businesses.
The bill comes in the wake of the NCAA’s 2021 decision to remove its prohibition on student-athletes benefiting from their fame, which prompted more than 30 states to implement NIL deal regulations. Utah abstained until now, but with the passage of this bill, the state attempts to mitigate what Rep. Jordan Teuscher termed the “wild, wild West” of student-athlete endorsements.
The legislation emerged partially in response to lucrative local NIL deals, such as those between the University of Utah athletes and the Crimson Collective, which provided leased vehicles worth over $40,000.
During legislative discussions, university representatives, including Utah Tech University’s Henrie Walton, expressed comfort with the bill’s provisions. Sen. Chris Wilson, the bill’s Senate co-sponsor, highlighted a benefit of keeping NIL deals away from the public record, which could impact Utah schools’ recruitment competitiveness. Governor Cox also emphasized the necessity for Utah’s colleges to remain competitive under the new college sports dynamics.
Despite support, the bill has been criticized for potentially diminishing transparency by exempting NIL deals from public records. The State Records Committee previously decided that such contracts should be public once they are shared with a university, a ruling this bill would overturn.
In parallel, the NCAA has shifted its approach, indicated by recent directives to stop investigations into booster involvement in NIL deals following legal setbacks and the launch of policies to increase transparency through a database of NIL agreements and a registry of agents associated with student-athletes.
FAQ Section
What is the purpose of the bill passed by the Utah Legislature?
The bill is designed to provide Utah universities with more control over NIL deals entered into by their student-athletes by requiring written approval for deals exceeding $600.
What types of endorsements are prohibited under this new bill?
Under the new bill, student-athletes in Utah are prohibited from promoting alcohol, tobacco, controlled substances, gambling, sports betting, firearms they cannot legally own, and sexually oriented businesses.
Why did Utah decide to legislate on NIL deals now?
Utah legislators felt it was necessary to intervene to prevent unregulated endorsement deals, which have been described as the “wild, wild West” by Rep. Jordan Teuscher, the bill’s primary sponsor.
What are the NCAA’s recent actions regarding NIL deals?
The NCAA has halted investigations into third-party involvement in NIL deals and is working on creating a database of NIL deals and a registry of agents to enhance transparency and protect student-athletes.
Are there concerns about the impact of this bill?
Yes, there are concerns that this bill might reduce transparency by exempting NIL deals from being part of the public record and by limiting regulatory oversight.
Conclusion
The Utah Legislature’s move to regulate NIL deals involving college athletes is a significant turn in the state’s approach to NCAA policy changes. As the bill awaits Governor Cox’s signature, its implications on future endorsement deals and the balance between oversight and student-athlete autonomy will be closely monitored. The debate between fostering a competitive environment and ensuring transparency remains a central issue as the landscape of college sports continues to evolve.
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