Ohio Moves Closer to NIL Reform By Allowing Direct Compensation for Student Athletes

With many states rewriting legislation for the benefit of their student-athletes, NIL deals are becoming a major part of the game.

Gov. Mike DeWine shakes hands with Ohio State President Ted Carter during the investiture ceremony at the Greater Columbus Convention Center on Friday, Nov. 8, 2024. / Adam Cairns/Columbus Dispatch / USA TODAY NETWORK via Imagn Images

Following a lawsuit against the NCAA, collegiate sports are shifting gears in order to compensate their student-athletes. As per the settlement that was reached in House v. NCAA, universities will be allowed to voluntarily compensate their student-athletes for use of their name, image, and likeness (NIL).

Ohio is on the cusp of rewriting their legislation in order to allow for its universities to participate in the NIL game. Without the proper legislation, Ohio schools and their athletic departments would be set behind the curve, and could ultimately suffer during trade seasons. New NIL deals are changing up the way that athletes look at certain programs.

Currently, the bill that is set to change things for Ohio is backed by Ohio State University, along with plenty of other major schools in the state. The Ohio Sentate is slated to make a concurrence vote on the bill later this week.

Ohio House Bill 660 is the result of an executive order set forth by Ohio Gov. Mike DeWine in order to move the NIL process along.

This bill would not only allow for direct revenue sharing between universities and their student-athletes, but it would ensure the athletes could obtain outside agents, protect their NIL contracts from the public, and be seen as independent student-athletes, not university employees.

Before the lawsuit against the NCAA, athletes that signed that play with universities were given scholarships and fee waivers, leaving them with little to their name in the way of financial compensation. NIL deals would now ensure that student-athletes are getting rightful compensation based on their hard work and dedication to their chosen programs.

The settlement is allowing for schools to create a pool of money that athletes will be paid from. As of now, programs cannot exceed $21.5 million in their first year. This pool would be the main source of money to use for the direct revenue sharing.

Pending the vote on Ohio House Bill 660, it has been made clear to athletic departments and state legislatures, alike that direct revenue sharing is still at the order and discretion of each individual athletic department. This bill simply allows universities to do so legally.

When NIL deals were first proposed and acted upon in 2021, athletes were allowed to seek outside sponsorship in the way of brand deals and/or third-party collectives. These revised deals will allow for more wide-spread support of athletes.

Ohio could soon join in on NIL revenue sharing, and the state has continued to reassure its residents that no taxpayer dollars will be used to compensate the athletes; each university must gather the funds privately or through the success of their programs.