Texas collegiate athletes could soon see expanded name, image and likeness rights with the ever-changing world of college athletics.
House Bill 126, filed by Rep. Carl Tepper (R-Lubbock) on March 10 for the current 89th Legislative Session would allow Texas student athletes to earn NIL deals even when they’re in the offseason, injured, or in the transfer portal.
HB126 requires student athletes to disclose their NIL contracts with their school and allows them to hire attorneys to help negotiate those contracts and navigate legal issues.
This bill will follow other NIL bills and ban players from doing deals involving tobacco, gambling, and steroids. Student athletes must get permission from their university to use logos, trademarks or university facilities in any deals.
“This puts us on par with other states who will be able to recruit in such a matter,” said Tepper in an interview.
The house passed HB126 on April 15 with a 125-19 roll call vote with two choosing not to vote and four absent. The bill will now be sent to the Texas Senate for further debate and consideration.
The first NIL law in Texas went into effect on July 1, 2021. Texas is one of 32 states that allows college athletes to make money from NIL, Tepper’s bill will add rules for recruits and fix other NIL conflicts.
These waves of NIL laws came after the Supreme Court case NCAA v Alston in 2021 in which a group of college athletes argued the NCAA’s rules that limited student athletes from receiving noncash benefits for academic purposes violated antitrust laws.
The court agreed with the plaintiffs, ruling that the NCAA’s limitations on these benefits violated anti-trust laws. The ruling paved the way for states to allow student-athletes to be compensated for their name, image and likeness.
For Sam Houston athletics, if this bill becomes law, it will allow the school to use NIL as a monetary incentive for high school players or players who are currently in the transfer portal.
NIL is currently not being used as a recruiting incentive at Sam Houston State University, said Ben Sorrells, Chief Operating Officer of the Katfund, a collective that supports student athletes and has distributed $200,000 over the past two years.
The organization has facilitated 117 NIL deals with around 90 student-athletes over the past 3 years.
“We’ve been able to build a community and help build the donor base at Sam Houston. We’ve done multiple different golf tournaments and meet and greets with players. We’ve tried to create access for fans and donors,” said Sorrells.
Sam Houston State men’s basketball coach Chris Mudge believes this NIL bill could transform the recruiting landscape and has also created opportunities and challenges for players and coaches.
“When money gets involved, especially with NIL, it can take over recruiting,” said Mudge. “It’s new and sometimes clouds judgment. We’re all still learning how to manage it and adjust.”