Arkansas Senate committee approved a bill allowing universities to pay college athletes in compliance with a $2.8 billion federal antitrust lawsuit settlement regarding name, image, and likeness (NIL) compensation. The bill, presented by Senate President Pro Tem Bart Hester, aims to enable schools to pay players through revenue sharing from media rights, ticket sales, and sponsorships, making Arkansas schools more competitive in the NIL landscape. Arkansas State University officials support the bill, which passed the state House by a vote of 92-3 and now needs approval from the full Arkansas Senate and Gov. Sarah Sanders.
The settlement, approved by athletes against the NCAA and power conferences, is subject to full approval by Federal Judge Claudia Wilken and could take effect as soon as July 1. Since the U.S. Supreme Court’s 2021 ruling allowing student-athletes to earn money from their NIL, funding for players has primarily come from separate “NIL collectives.” This settlement would mark a significant departure from the amateur structure of college sports, permitting universities to directly compensate players for their NIL and implementing salary caps, roster limits, and a third-party clearing house to evaluate marketing deals.
However, some student-athletes have expressed concerns about potential roster cuts due to the new regulations. NPR reports that thousands of roster spots could be eliminated once the settlement is fully approved. Despite these concerns, the bill represents a significant step toward enabling college athletes to benefit financially from their name, image, and likeness, reflecting a shift towards a more professional model for college sports.
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