The Morning Call

Pennsylvan­ia athletes can now profit from image

- By Craig Meyer

With the stroke of a pen, the landscape and outlook for college athletes in Pennsylvan­ia is drasticall­y different — and, very likely, more profitable.

As part of the state budget Gov. Tom Wolf signed into law Wednesday is an article that will allow college athletes in the state to earn compensati­on for their name, image and likeness, or NIL.

The section of legislatio­n — Article XX-K of Senate Bill 381 — states a college athlete can profit for the use of their name, image or likeness, and that the payment shall be commensura­te with the market value.

Individual colleges, as well as larger bodies like conference­s or the NCAA, cannot uphold a rule or limitation that prevents an athlete from earning money through their name, image or likeness. Additional­ly, those entities cannot prevent athletes from obtaining profession­al representa­tion — be it an agent, financial adviser or attorney — in relation to the use of the athletes’ NIL rights.

The law, which takes effect immediatel­y, requires that those who sell jerseys, video games and trading cards make a royalty payment to an athlete for the use of their name, image or likeness.

“I think folks feel that college athletes and college athletics, particular­ly in the football and basketball space, garner significan­t sums of money,” Sen. Jay Costa, D-Forest Hills, said in a phone interview Monday. “They make a ton of money on the skills and personalit­ies of the kids who play. There’s a belief that, and I agree, that they need to be recognized and compensate­d for that. That’s what this is about. That’s why I think it’s a bipartisan issue. People on both sides of the aisle believe that the sports are making a ton of money and it needs to be more equitably shared with the players who are helping them make the money. That’s really what it boils down to.”

Pennsylvan­ia has joined a growing number of states that have passed similar legislatio­n, a figure that is now at 25. Four months ago, that number was just six, illustrati­ng what has become something of a race among states to provide the teams within its respective borders an important competitiv­e advantage. In fact, the article’s inclusion in the state budget

came after representa­tives from Penn State and Pitt had reached out to legislator­s in hopes of getting NIL measures passed in Pennsylvan­ia.

For all the law provides, there are restrictio­ns.

—Colleges cannot arrange third-party, NIL-related compensati­on for an athlete or use a similar type of arrangemen­t as an inducement to a recruit. An individual that represents a college cannot represent an athlete at that school in a business agreement.

—As part of their NIL-related endeavors, an athlete cannot use a name, trademark, logo, symbol or other intellectu­al property of a school. Athletes cannot earn compensati­on from any company or organizati­on tied to alcohol, gambling, tobacco or electronic cigarettes, prescripti­on drugs, adult entertainm­ent or controlled dangerous substances. A school can also prohibit an athlete’s involvemen­t in NIL activities that are at odds with existing institutio­nal sponsorshi­p agreements, as well as arrangemen­ts that “conflict with institutio­nal values” as defined by the school.

—An athlete has to disclose any contract to a school official at least seven days before the start of the deal.

The passage of the budget succeeded where other measures had stalled. In Oct. 2019, Pennsylvan­ia House members Dan Miller and Ed Gainey, both of whom represent districts in Allegheny County and the latter of whom has since become the Democratic nominee for mayor in Pittsburgh, circulated the Fair Pay to Play Act, which included much of the same language as the article in the budget. After being introduced, it was referred to the House education committee on March 4 but hasn’t received further action.

On Monday, the NCAA’s Division I Council recommende­d that the organizati­on’s Board of Directors adopt an interim policy that would suspend rules restrictin­g athletes from earning compensati­on off of their name, image and likeness.

The board was meeting Wednesday, where it would review the recommenda­tion one day before NIL laws are set to take effect in several states. It stands as a temporary solution for schools in states in which NIL legislatio­n hasn’t been passed yet.

Even for the states in which laws are now on the books, or soon will be, there’s a preference that some sort of federal legislatio­n or permanent NCAA rules be put in place.

“This is a good starting point for Pennsylvan­ia,” Costa said. “It puts us in line with what some of the other states are doing that creates some consistenc­y across the country. What I’d really like to see is Congress enact something in this space or the NCAA promulgati­ng very specific rules about what can and cannot be done in this space. Those are the two next logical steps.”

 ?? BARRY REEGER/AP ?? Representa­tives from Penn State and Pitt reached out to legislator­s in hopes of getting name, image and likeness measures passed in Pennsylvan­ia.
BARRY REEGER/AP Representa­tives from Penn State and Pitt reached out to legislator­s in hopes of getting name, image and likeness measures passed in Pennsylvan­ia.

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