PHOENIX—A new law in Arizona is set to reshape how colleges and universities can financially support their student athletes. Governor Katie Hobbs signed Senate Bill 1615 on May 7, enhancing previously established provisions that allowed athletes to benefit from their name, image, and likeness (NIL) in promotional endeavors.
Initially approved in 2021, the original NIL law enabled student athletes to earn money but did not allow direct payments from their schools. The newly enacted legislation changes that by permitting universities to directly compensate athletes. Additionally, institutions can partner with third-party organizations to facilitate these agreements, providing more avenues for athletes to earn money.
Senator T.J. Shope, who sponsored both this legislation and the earlier NIL bill, emphasized that the law seeks to ensure Arizona’s institutions remain competitive in attracting top talent. “This legislation will provide Arizona schools a competitive balance, if not an advantage, over their peers,” he said.
Universities and colleges must still adhere to certain restrictions. The law prohibits athletes from entering contracts that would violate existing team agreements or a school’s honor code, specifically preventing deals with companies in sectors like marijuana or alcohol. This measure aims to protect the integrity of the athletic programs.
Sabrina Vazquez, a lobbyist representing the University of Arizona, highlighted the urgency of this law, citing a lack of federal regulations on NIL. In her testimony to lawmakers, she expressed concerns that Arizona’s athletes could face disadvantages compared to those in states with more favorable NIL policies.
The law also introduces new fundraising possibilities for schools, including the option to conduct “50/50 raffles.” In this arrangement, half of the proceeds from ticket sales go to a winner, while the other half can support the university’s financial commitments to athletes. This allows schools to tap into existing fundraising mechanisms while directly benefiting student athletes.
Another notable aspect of SB 1615 is its provision to exempt negotiations between schools and potential recruits from public record laws. This confidentiality aims to prevent other institutions from poaching Arizona’s prospective talent by gaining insights into their recruitment strategies.
While the Arizona law does not impose a cap on the total compensation that can be offered, athletes will still need to report any NIL income exceeding $600 to the NCAA. This reporting requirement aligns with a proposed legal settlement currently under review, which could eventually dictate compensation limits based on revenues generated by major conferences.
The Arizona Legislature passed SB 1615 with broad bipartisan support; however, some lawmakers, such as Representative Alexander Kolodin, raised concerns about financial implications. He argued that the legislation should also prohibit the use of tuition dollars for NIL payments, warning that it could exacerbate the rising costs of college education.
As universities adapt to these new regulations, the landscape of college athletics in Arizona may significantly evolve, reflecting broader trends in athlete compensation nationwide.
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