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Name / image compensation for student-athletes proposed

By on June 26, 2021 0

Pennsylvania college athletes could receive compensation for their name, image, and likeness in proposed legislation associated with the new state budget.

PennLive.com reports that a document obtained from the State House Republican Appropriations Committee and related to the state budget contains language saying that a student athlete “may earn compensation” for their “name, image or likeness.”

“The compensation will be proportional to the market value of the name, image or likeness of the student athlete,” the document said. “Compensation may not be provided in exchange, in whole or in part, for the participation of a current or potential student athlete, to participate or to perform at a particular institution of higher education.

PennLive reports that student-athletes would need to bring in outside agents to negotiate name, image and likeness deals – and schools, conferences and the NCAA couldn’t stand in the way of a deal. In addition, an athlete’s purse could not be revoked or reduced based on the compensation received in connection with such transactions. A royalty clause would require producers of team jerseys, video games or collectible cards to pay royalties to student-athletes

Under the proposal, student-athletes would not be allowed to enter into agreements with people involved in adult entertainment, alcohol products, casinos and gambling – including sports betting and the lottery – on tobacco and electronic smoking, prescription pharmaceuticals or controlled hazardous substances.

Six other states have similar legislation that will come into force on July 1, and more states are considering proposals.

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