Oklahoma legislature passes NIL bill for revenue sharing

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OKLAHOMA CITY — A measure allowing state universities in Oklahoma to enter into licenses or endorsement agreements for a student athlete’s name, image and likeness awaits Gov. Kevin Stitt’s signature.

Author of Senate Bill 490, state Sen. Todd Gollihare, R-Kellyville, sees the measure as a significant step in modernizing the state’s collegiate athletics landscape.

The measure amends the Student Athlete Name, Image and Likeness Rights Act, passed by the legislature in 2021, to align with the rapidly evolving national framework of collegiate sports and ensure student athletes and universities in Oklahoma remain competitive.

“As we witness the evolution of collegiate athletics and the end of the amateur athlete era, it is imperative that our state takes proactive measures to keep pace with national changes,” Gollihare said in a March statement. “This legislation strikes a balance between preserving the student experience and ensuring our institutions are not at a disadvantage.”

SB 490 allows Oklahoma’s NCAA member schools to engage in revenue-sharing agreements with student athletes, preventing competitive disadvantages due to less regulation in other states.

According to a release, the bill establishes a $20.5 million annual cap per institution for athlete compensation. Universities can use revenue derived from conference distributions, advertising, sponsorships and ticket sales. They may not use appropriated state funds to pay athletes.

The measure passed the Senate on March 17. State Rep. Mark Lawson, R-Sapulpa, presented it to the House Monday. He said the measure is supported by the University of Oklahoma and Oklahoma State University, the state’s two largest institutions. A 69-19 House vote sent the measure to the governor’s desk.

Discussions regarding revenue sharing for NIL have ramped up in the last two years as interested parties await the pending House v. NCAA settlement. The lawsuit was filed in 2020 by Arizona State University swimmer Grant House and Texas Christian University basketball player Sedona Prince. Plaintiffs claim the association broke antitrust laws by preventing college athletes from receiving compensation for the use of their NIL.

A proposed multi-billion-dollar settlement is pending approval from the court. Additionally, the settlement will establish a revenue-sharing model where schools can directly pay their student-athletes for their NIL rights, using up to 22% of their athletic department revenue, starting in 2025. The new model will replace the previous system where student-athletes could only receive NIL compensation from boosters and sponsors.

Every payment made to student athletes before June 30, 2025, will not count against the newly established salary cap, offering immediate flexibility for institutions as they transition to this updated framework, according to a March Senate release.

Gollihare said SB 490 sets a national precedent by ensuring student athletes receive fair opportunities and maintaining the integrity of collegiate institutions.

“By memorializing these agreements into law, we provide clarity and stability for athletes, universities, and stakeholders alike,” Gollihare said.

With an emergency, the measure will go into effect if and when Stitt signs it.

Stitt has already shown a willingness to allow state schools to facilitate NIL deals with a January executive order. The order allows for the creation of foundations to act as clearing houses for entities to contribute to NIL funds without fear of retaliation or investigation from athletic organizations like the NCAA or athletic conferences. It also ensures that Oklahoma taxpayer dollars will not be used for these payments.

“It’s about leveling the playing field and maintaining the competitive edge that defines Oklahoma athletics,” Stitt said in a January statement.

Gollihare said he’s proud to see SB 490 earn strong bipartisan support in both chambers and head to Stitt’s desk for signature.

“By establishing a clear framework for revenue sharing, we’re leading the way on responsible NIL reform that balances opportunity and accountability,” Gollihare said in a statement Wednesday afternoon. “I appreciate my colleagues’ support and look forward to seeing this become law.”