Virginia Colleges Will Be Able to Directly Pay Athletes for NIL Under New Law

Virginia Gov. Glenn Youngkin signed a bill Thursday that will allow universities in the state to pay athletes directly for NIL endorsements.

Before putting his signature on the bill, Youngkin said HB 1505, which won't take effect until July 1, helps Virginia schools be competitive in athletics and provides a level of added oversight:

ESPN's Dan Murphy noted it's the first piece of legislation by a state that would nullify the NCAA's rules regarding how athletes are compensated for NIL deals.

Rather than schools paying student-athletes NIL money directly, they've often leaned on independent collectives in which major boosters and fans pool their resources to attract talent.

Murphy noted how there's still much to be resolved between now and July 1.

"If the NCAA does not change its rules before July and a school decides to sign NIL deals with its athletes, the state could then sue the NCAA if the association attempts to penalize the school," he explained. "The NCAA has previously told ESPN that in cases where a law that contradicts NCAA rules is permissive — allowing a school to do something rather than mandating that a school do something — the association expects schools to still follow NCAA rules."

If recent history is any indication, the actual consequence of HB 1505 isn't what it will do in Virginia specifically but how it incentivizes others states to follow suit.

In June 2020, Florida became the first state to pave the way for college athletes to be compensated within an NIL context. Lest others fall behind in the recruiting arms race, more states began pursuing their own NIL legislation to a point where the NCAA had little choice but to lay out an overarching framework in June 2021.

"If this law gets us closer to a federal or a national solution for college athletics, then it will be more than worthwhile," Virginia athletic director Carla Williams said, per Murphy. "Until then, we have an obligation to ensure we maintain an elite athletics program at UVA."

Murphy wrote that athletes still won't be considered employees of a school if they're receiving a direct NIL payout under the new Virginia law.