Student-athletes at Texas colleges will soon be able to earn money from businesses that use their names, images and likenesses after Gov. Greg Abbott (R) signed a new bill into law Monday.
Abbott signed Senate Bill 1385, which will go into effect July 1.
“I think in 2019 California was the first state to officially pass it, and that kind of opened up the floodgates," sports agent Jordan Woy said. "Other states started to realize if we don't jump on the bandwagon it is going to be a disadvantage in recruiting."
The law has some restrictions. While players can have endorsement and sponsorship deals, those cannot include alcohol, casino gambling and some other businesses. It requires students to take financial literacy courses.
“It’s fairly fresh so we are trying to figure out how we best position this without jeopardizing eligibility or anything else for our student-athletes,” said Jared Mosley, associate vice president and COO at UNT Athletics.
Right now, NCAA rules prohibit students from getting paid. Mosley said they are waiting on more information on NCAA, but believe they can focus on the education component of this, including financial classes, education on creating a brand and social media.
Other schools also reacted to the news.
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“There has been such anticipation for years now that just to have the rules in place, something we can go forward on is a start," TCU Athletic Director Jeremiah Donati said. "We do need a federal solution. Having 50 states with 50 different sets of rules is not something that is sustainable long term. So we do need a federal solution, so we are hopeful that comes very soon."
Woy said he thinks eventually all schools will be on the same playing field.
“At the end of the day, it is either going to be the feds or the NCAA," he said. "Somebody is going to come and say, 'We are going to have uniform legislation, this is going to be the rules for everybody."