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With a major NCAA settlement on the horizon, Kentucky bill would update NIL framework

FILE - The NCAA logo is displayed at center court at The Consol Energy Center in Pittsburgh, March 18, 2015. Ten players from North Carolina State's 1983 national champion basketball team have sued the NCAA and the Collegiate Licensing Company seeking compensation for unauthorized use of their name, image and likeness. The players filed suit in Wake County Superior Court on Monday, June 10, 2024, requesting a jury trial and “reasonable compensation.” (AP Photo/Keith Srakocic, File)
Keith Srakocic/AP
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AP
FILE - The NCAA logo is displayed at center court at The Consol Energy Center in Pittsburgh, March 18, 2015. Ten players from North Carolina State's 1983 national champion basketball team have sued the NCAA and the Collegiate Licensing Company seeking compensation for unauthorized use of their name, image and likeness. The players filed suit in Wake County Superior Court on Monday, June 10, 2024, requesting a jury trial and “reasonable compensation.” (AP Photo/Keith Srakocic, File)

As schools await a major ruling on an NCAA settlement that could reshape how student-athletes are compensated for their name, image and likeness, Kentucky lawmakers are mounting a full court press to ensure state universities are ready.

The fast-approaching House v. NCAA settlement is being described as a "transformational" change in college athletics, moving it closer to a revenue sharing model.

It would also reimburse athletes who lost opportunities to benefit from endorsements permitted after 2021, and allow schools to pay players directly for use of their name, image, and likeness — commonly referred to as NIL.

Regarding the new Kentucky legislation setting the stage for those potential changes and more, UK Athletics Director Mitch Barnhart said it gives the school some flexibility as it heads into new terrain.

"We're not sure where this landscape is going. We do know that, this may be one step. It might not be the final step," he cautioned. "There may be things that come down the road as conversations happen in Washington DC. As things happen on our national landscape and as a new entity of college athletics has been created, there may be things that we have to adjust to. But, for now, this is the step that is most necessary for us to be able to continue to move forward with our athletic departments and for all of our young people."

The bill gained unanimous support in committee, but not without some lawmakers lamenting the direction college sports has taken.

"I am one of those that thinks NIL and the portal has absolutely destroyed college sports," Republican Sen. Danny Carroll. "You can't focus on a game because all they talk about is that the best player is about to leave to go to another school... But in saying that, I also know that Kentucky has to compete."

If the settlement moves forward in early April, as anticipated, schools will have the option to spend around $20 million on those NIL payments.