NIL bill would allow Nebraska colleges to pay athletes directly under NCAA settlement

Nebraska's colleges and universities would be able to pay athletes name, image and likeness compensation directly under a bill heard Monday afternoon in a legislative committee.

Sen. Megan Hunt's said her bill, LB370, would enable the state to respond to a $2.8 billion settlement from the NCAA that could allow universities to pay athletes NIL money directly.

The settlement came in response to a lawsuit, House v. NCAA, filed against the NCAA in 2020 by college athletes who argued they were unfairly restricted from profiting from NIL. A judge is expected to rule on the settlement later this spring, but additional legal battles are expected to follow.

"The settlement has opened the flood gates to universities and states rushing to compete to recruit the top athletes by reforming their laws and offering direct compensation so they can get the settlement funds,” Hunt said.

Current Nebraska law prohibits schools from directly paying their athletes NIL compensation. Instead, money is doled out through third parties like 1890 Nebraska, the University of Nebraska-Lincoln's official NIL collective, or individual brand deals with businesses.

Hunt's bill would allow payments to come directly from athletic departments, which she said would keep the state's college sports teams competitive.

“States that do not allow their college athletes to enter into NIL deals and receive NIL compensation from their athletic programs will be at a significant disadvantage in recruiting and retaining talented college athletes," she said. "We have such a strong and proud tradition of Husker athletics in our state. LB 370 is a necessary step to keep that competitive edge."

Hunt’s bill also adopts standards for athlete agents and protects athletes from having their NIL revoked for protected first amendment speech.

The Business and Labor Committee will decide whether to send the bill to the floor for full debate.

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