Universities in Utah would be able to directly pay their athletes regardless of the resolution of a nationwide anti-trust settlement that proposes to create a revenue sharing model in college sports.
The Utah Legislature approved a bill on the final day of its general session last Friday that allows schools in the state to directly compensate athletes for the use of their name, image and likeness. HB479 also clearly states that college athletes are not university employees.
The legislation passed the House and Senate with little debate and now awaits the governor's signature. It would take effect May 7.
Lawmakers say the measure is necessary to ensure Utah schools stay competitive with universities across the country and ensure they don't fall behind because the state's laws are not up to date amid the rapidly shifting landscape in college athletics.
Last year, a judge preliminarily approved a settlement in the House v. NCCA anti-trust case that would create revenue sharing in college sports. If the agreement goes through in April, universities could earmark as much as $20.5 million to directly pay athletes starting in July. Most Power Four schools are expected to spend $15 to $17 million on their football rosters.
Rep. Jordan Teuscher, R-South Jordan, said the law would allow universities to pay their athletes for NIL whether or not the settlement is approved.
The measure also:
Prohibits the use of legislative appropriations, tuition or fees to pay athletes.
Requires an audit every five years of how schools spend NIL money starting in 2028.
Removes a requirement approved last year that athletes submit NIL contracts over $600 in value to their schools for review.
Bans schools from preventing athletes from participating in sports because they have hired an agent.
The field of the under-construction soccer stadium is pictured on the campus of Utah Valley University in Orem on Friday, Nov. 15, 2024. | Isaac Hale, Deseret News
The original version of the bill made direct payments public records subject to Utah's Government Records Access and Management Act, or GRAMA, but Teuscher removed that provision. It does not preclude anyone from requesting the records, though schools have made it clear they believe NIL payments are private and fought attempts to disclose them.
One lawmaker, Sen. Lincoln Fillmore, R-South Jordan, called the proposed law a "clever" way to pay college athletes during a committee hearing. "Why not just pay them for playing football?" he said.
Fillmore also raised questions about transparency in the use of public money.
Last year, lawmakers passed a law making NIL contracts with third parties, such as businesses, private records under GRAMA. He said that made sense because public funds weren't involved.
"But this is public money. I understand it's not legislatively appropriated money but regardless of that, when it goes to a university, it becomes public money," Fillmore said during the hearing.
Jeff Hunt, a lawyer for the Utah Media Coalition, argues that NIL payments should be treated like other university disbursements that are a matter of public record.
While Teuscher sponsored the bill allowing for direct payments, lawmakers ultimately folded it into HB479 addressing abusive coaching practices in college sports.
That part of the legislation requires universities to create a policy addressing abusive coaching practices and a procedure for responding to complaints by early November. The bill defines that as harmful or offensive physical contact; sexual misconduct or harassment; inappropriate sexual language; and conduct a reasonable person would find to be psychologically abusive.
"This is an issue that has affected more than one of our universities in recent years," bill sponsor Rep. Sahara Hayes, D-Salt Lake City, said during a committee hearing.
The legislation came after several University of Utah gymnasts alleged coach Tom Farden verbally and emotionally abused and physically intimidated them. An outside review of the gymnastics program found that while some gymnasts had a negative experience, Farden did not engage in any "severe, pervasive or egregious" acts of emotional, verbal or physical abuse.
Farden and the university mutually agreed to part ways in November 2023.
