Virginia signs law allowing in-state Universities to directly pay NIL to athletes

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

JOSEPH ZUCKER?APRIL 18, 2024


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

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