Texas Gov. Greg Abbott signs NIL bill. How does it impact college athletes?

The details of the House settlement with the NCAA may not have finished, but Texas Gov. Greg Abbott signed a bill into law Thursday that will end the NCAA’s decades-old prohibition on universities paying players directly.

Under House Bill 126, colleges will be able to enter into name, image and likeness deals with athletes directly. Current state laws only allow students to have NIL agreements with third-party brands. The bill allows athletes over 17 who have enrolled in college to sign deals, but the right does not extend to high schoolers.

More: Texas football quarterback Arch Manning signs NIL deal with Red Bull

Schools will be allowed to provide a total of $20.5 million to their athletes annually. They will also be able to use the funds to recruit high school athletes, which is not allowed under the current system.

Further developments are possible depending on what happens with the $2.8 billion House v. NCAA settlement. Both sides are waiting for the final judgment on the deal, which would provide backpay to former collegiate athletes and allow revenue sharing between schools and their players. The deadline for resolution is June 27, with sharing expected to start July 1. If the House deal differs from Texas’ law, it would automatically conform to the NCAA changes without the need to pass new legislation, per KBTX. 

The state law is expected to go into effect Sept. 1.

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