Penn State and Pitt Athletics on Wednesday supported Pennsylvania’s new name, image and likeness law.
Statements released by both universities praised lawmakers for including language on how college athletes can capitalize on their popularity under a state budget signed by Governor Tom Wolf on Wednesday.
“We are delighted that Pennsylvania lawmakers have passed legislation allowing our students to explore opportunities involving their name, image and likeness,” the Penn State statement said. “This law will give our students the same opportunities as students in states with NIL laws to receive payment for the use of their name, image or likeness.
“We have always focused on preparing our students for a life of impact and this new law will allow our students to develop their entrepreneurial spirit which they will take with them well beyond their time at Penn State. “
Pitt athletic director Heather Lyke said:
“When it comes to providing our student-athletes with the most extraordinary experience at Pitt, our goal is to be progressive, innovative and helpful in all aspects of their student-athlete experience and the world. of name, image and likeness is no different.
“We look forward to helping our student-athletes learn more about this topic and establish a transparent relationship with them and their families so that we can assist them in their efforts or aspirations to maximize compensation and opportunities involving their name, image and likeness. “
The Pa. NIL Act, which was linked to the School Code Bill, gives athletes the right to earn money from their fame without risking their scholarship or eligibility. There are, however, some restrictions. Part of the wording of the bill says that:
“- A student-athlete may earn compensation for the use of the name, image or likeness of the student-athlete under this article. The compensation will be proportional to the market value of the name, image or likeness of the student-athlete. Compensation cannot be provided in exchange, in whole or in part, for a current or potential student-athlete to attend, participate or perform at a particular higher education institution.
Student-athletes would need to bring in outside agents to negotiate NIL agreements – short for “Names, Image and Likeness” rights. He also says that schools, conferences and the NCAA cannot oppose a deal. In addition, an athlete’s scholarship cannot be reduced or revoked based on what he or she might enter into through one or more name, image and likeness contracts.
There is also a royalty clause in the bill. It reads:
“A person who produces a varsity team jersey, varsity team video game, or varsity team trading cards for the purpose of making a profit must pay a royalty to each student athlete whose name, image , resemblance or other individually identifiable characteristic is used. “
However, there are limits for athletes. According to the bill, they could not enter into agreements with the following industries:
(1) Adult entertainment products and services.
(2) Alcoholic products.
(3) Casinos and games of chance, including sports betting, lottery and betting related to video games, online games and mobile devices.
(4) Tobacco and electronic smoking products and apparatus.
(5) Prescription pharmaceutical products.
(6) A controlled dangerous substance.
Student-athletes will also be required to provide a copy of their agreement at least seven days prior to its execution to a designated person at their school.
College athletes in Pennsylvania will be able to make deals immediately, although none can be executed until July 7, as per the seven-day notice stipulation.