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A house-amended version of Senate Bill 1385 passed in the Texas Senate on Friday, with the bill now awaiting the signature of Governor Greg Abbott (R). Once Abbott puts pen to paper or allows 10 days to pass without a veto, Texas will become the 17th state to enact legislation enabling collegiate student-athletes to profit off their name, image, and likeness (NIL). The bill was introduced by state senator Brandon Creighton (R-Conroe), and was overwhelmingly passed by the Texas house and Senate on its way to the governor’s desk.
Whenever it becomes law either via Abbott’s signature or inaction, the NIL regulations go into effect on July 1.
Florida and California started the snowball of NIL legislation nearly two years ago. Gavin Newsom (D) signed California’s NIL bill into law in September 2019, while Ron DeSantis (R) signed the Florida version in June of 2020. The Florida legislation called for a July 1, 2021 effective date, leading states around the country, now including Texas, to quickly follow suit in order to remain competitive within the new landscape of name, image, and likeness.
Creighton’s bill passed in the Senate in late April by a 28-2 vote. The bill passed in the house by a vote of 117-27 on May 23. It includes language that indicates the purpose of the legislation was not only to allow student-athletes to profit off their own image, but also to keep Texas institutions from being at a recruiting disadvantage to schools in other states with NIL laws in place.
The bill says public and private higher education institutions in Texas may not prevent student-athletes from earning compensation for the use of their name, image, and likeness. It also bars schools from preventing student-athletes the ability to obtain representation for matters related to NIL.
Student-athletes may not enter into a contract for the use of their NIL for alcohol, tobacco, e-cigarettes or other nicotine devices, anabolic steroids, sports betting, casino gambling, a firearm the student-athlete cannot legally purchase, or a “sexually oriented business,” according to the bill. An institution cannot compensate for the NIL of one of its own student-athletes.
The law also restricts student-athletes’ ability to sign with an agent, only allowing for an “attorney licensed to practice law in this state” to be a representative. The house version of the bill removed language allowing for an “athlete agent” to provide representation in NIL matters, and the Senate approved that amendment before sending the bill to Abbott.
The state legislature of Texas joined 16 other states in laying the ground rules within their borders after years of inaction by the NCAA. SB1385 even calls on the U.S. Congress to act on the issue, saying Washington has “failed to act to provide uniform guidance to the states on the matter of intercollegiate athletes receiving compensation in exchange for the use of the athlete’s name, image, or likeness.”
For the Texas football program, the new landscape does not come as a surprise, but it does carry with it many unknowns. In August 2020, Texas launched the LEVERAGE program “designed to equip Longhorn student-athletes with the knowledge and tools necessary to maximize their brand and platform.”
“Texas is a land of opportunity, Austin is a thriving, dynamic and energetic city right in the middle of it, and The University of Texas is like none other,” said UT athletics director Chris Del Conte in a statement last summer. “All of those factors, along with the national and worldwide power of the Longhorn brand are among the many things that will be key elements in our exciting new LEVERAGE program. The program is designed to prepare, enhance and play a critical role in our student-athletes developing and growing their personal brands.”
Actions within the UT athletic department hinted at an emphasis on personal branding even before the LEVERAGE program. Members of the 2020 and 2021 classes had personalized brands prominently featured in their signing announcements. It was a major recruiting pitch from the previous coaches and one that continues with Steve Sarkisian’s staff.
But despite the new rules in the state, uncertainty remains. In the U.S. House of Representatives, HR 850 or the College Economic Freedom Act, introduced by former Georgetown volleyball player Lori Trahan (D-MA), is currently in subcommittee. The bill would “establish name, image, likeness, and athletic reputation rights for college athletes, and for other purposes” at a national level.
There’s also uncertainty in Austin. Sarkisian, speaking to the Touchdown Club of Houston earlier this week, said NIL is uncharted territory but it should be beneficial to the University of Texas.
“There’s so many things involved that this thing right now is so enormous, we really don’t know what it looks like yet,” Sarkisian said. “I do believe this; I believe that the University of Texas is an advantage to us. I’m all for it. My chips have already been pushed into the middle of the table. Let’s go for it.”
“But what it looks like, I don’t know yet. We’ll see what happens here come July, I think is when we’re going to find out the parameters that we have to navigate within.”
Even if the new landscape is a chore, Sarkisian understands NIL programs are a necessity in modern recruiting.
“I think ultimately you have to change if you want to keep progressing and be on the cutting edge of things that are happening,” Sarkisian said.
For many student-athletes, these new guidelines are a long time coming. And some, like Texas linebacker DeMarvion Overshown, believe this is only the beginning.
“As student-athletes, we have to start applying more pressure on these universities, the government and the NCAA when it comes to our name and image,” Overshown tweeted Friday. “For many years, they have robbed us of money and opportunities. They’ve made it where you can build relationships with coaches throughout the recruiting process but when they leave you are forced to cut ties with them.”
“Majority of the states are still trying to postpone NIL rules when it was suppose (sic) to be settled in January. This isn’t the case anymore. They know exactly what they are doing by continuing to delay the rights to profit off OUR NAME and IMAGE. They can’t give us one valid reason as to why either. It’s crazy how they can sell tickets with our photo on it but we don’t see a dime of it. This isn’t the case anymore. Changes are coming by any means necessary….”
Overshown, who could stand to benefit from marketing his “Arm Bandit” persona, makes a clear point: student-athletes want a part of the revenue they help college athletic departments rake in, and they’re tired of being on the sidelines at the negotiating table.
Student-athletes, whether it be one of several hundred at UT or several thousand across the Lone Star State, will be able to profit off their name, image, and likeness following Abbott’s stroke of the pen. What the landscape will look like when the NCAA or Washington decides to provide more overarching guidelines remains a mystery.
Beginning July 1 in Texas, student-athletes will be able to promote the local car wash, or BBQ joint, or even make money streaming on YouTube or Twitch. They don’t have to cross state lines to do so, an important reason behind SB1385’s successful journey.
The landscape of college athletics is changing, and that change has arrived for Texas – both the state and the institution.
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