Oklahoma NIL Law for NCAA

On May 28th, 2020, Oklahoma passed a Name, Image, Likeness (NIL) law for their colleges and institutions. Oklahoma will see the legislation go live, effective in the fifth academic year following the date of enactment. Governor Kevin Stitt signed Senate Bill 48 allowing intercollegiate student athletes the ability to earn compensation for the use of their NIL. However, a Senate Bill 840 was introduced on February 6, 2023 to modify provisions in the initial legislation. Senate Bill 840 was passed and took effect on May 25, 2023.

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Bill
Status

Signed Into Law

Effective
Date

05/25/2023

NCAA
Institutions

Estimated
NCAA Athletes

4,500

High School
NIL Legislation

Yes

Last Updated 08/12/22

Oklahoma NIL Law

Senate Bill 840:

An Act relating to collegiate athletics; amending 70 O.S. 2021, Sections 820.22, 820.23, 820.24, 820.25, and 820.26, which relate to the Student Athlete Name, Image and Likeness Rights Act; modifying definitions; modifying limitation on certain compensation; prohibiting postsecondary institution from providing certain representation or compensation; prohibiting collegiate athletic association from imposing certain restrictions on postsecondary institutions; construing provisions; removing limitation on certain representation; establishing requirements for certain agreements; requiring certain individual or entity to ensure certain disclosures; requiring disclosure of certain representation; modifying requirements for certain contracts; prohibiting use of certain marks for certain purposes; providing exception; authorizing adoption of certain restrictions; authorizing certain third-party agreements; authorizing certain educational or training requirements; modifying effective date of provisions; prohibiting collegiate athletic association and member institutions from taking certain actions against student athlete or postsecondary institutions; prohibiting liability for employees of postsecondary institution for certain decisions or actions; updating statutory language; amending 70 O.S. 2021, Section 822.1, which relates to gifts to student athletes; updating statutory references; modifying definition; providing for codification; and declaring an emergency.

SUBJECT: Student Athlete Name, Image and Likeness Rights Act

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

SECTION 1. AMENDATORY 70 O.S. 2021, Section 820.22, is amended to read as follows:

Section 820.22. As used in the Student Athlete Name, Image and Likeness Rights Act:

1. “Athletic grant-in-aid” shall have the meaning provided by the applicable collegiate athletic association as aid related to the student athlete’s participation in an intercollegiate sport for a postsecondary institution. Athletic grant-in-aid shall not include compensation for the use of the student athlete’s name, image, or likeness rights or athletic reputation;

2. “Collegiate athletic association” means any athletic association, conference, or other group or organization with authority over intercollegiate sports including, but not limited to, the National Collegiate Athletic Association;

3. “Postsecondary institution” means any state educational institution or private educational institution as defined in Section 3102 of Title 70 of the Oklahoma Statutes;

4. “Professional representation” includes, but is not limited to, representation by any individual or entity engaged by a student athlete for the purpose of securing compensation or benefits for a student athlete’s name, image, or likeness activities. Any individual or entity engaged for such purpose shall be a fiduciary for the represented student athlete;

5. “Student athlete” shall have the same meaning as defined in the Revised Uniform Athlete Agents Act; and

6. “Team activities” means student athlete participation in countable athletically related activities and required athletic activities as defined by the collegiate athletic association or as otherwise defined by the postsecondary institution.

SECTION 2. AMENDATORY 70 O.S. 2021, Section 820.23, is amended to read as follows:

Section 820.23. A. Except as otherwise provided in the Student Athlete Name, Image and Likeness Rights Act, a student athlete may earn compensation for the use of the name, image, or likeness of the student athlete while enrolled at a postsecondary institution without penalty or resulting limitation on participation. Compensation for the use of a student athlete’s name, image, or likeness shall not affect the student athlete’s eligibility for athletic grant-in-aid.

B. A student athlete shall not earn compensation in exchange for his or her athletic performance or participation in intercollegiate athletics or sports competition. Compensation shall not be provided as an inducement for athletic performance or to attend or enroll at a particular institution.

C. A postsecondary institution or an officer, director, or employee of such postsecondary institution shall not provide professional representation or compensate or cause compensation to be directed to a current or prospective student athlete for his or her name, image, or likeness unless otherwise permitted by a collegiate athletics association and institutional policy.

D. A collegiate athletic association shall not prohibit a postsecondary institution from identifying, facilitating, enabling, or supporting opportunities for a student athlete to earn compensation for the student athlete’s name, image, or likeness activities.

E. The provisions of this section shall not be construed to qualify a student athlete as an employee of a postsecondary institution.

SECTION 3. AMENDATORY 70 O.S. 2021, Section 820.24, is amended to read as follows:

Section 820.24. A. 1. A student athlete may obtain professional representation for the purpose of securing compensation for the use of his or her name, image, or likeness without penalty, resulting limitation on participation or effect on the student-athlete’s athletic grant-in-aid eligibility.

2. Any professional representation agreement shall:

a. be in writing,

b. be executed by both parties,

c. clearly describe the obligations of the parties, and

d. outline fees for the professional representation.

3. An individual or entity engaged for professional representation by a student athlete shall ensure the student athlete discloses the professional relationship to the postsecondary institution as required by this section.

B. A student athlete who enters into a contract providing compensation to the student athlete for use of his or her name, image, or likeness or for professional representation shall disclose the contract in a manner designated by the postsecondary institution, but in any event within seventy-two (72) hours after entering into the contract or before the next athletic event in which the student athlete is eligible to participate, whichever occurs first.

SECTION 4. AMENDATORY 70 O.S. 2021, Section 820.25, is amended to read as follows:

Section 820.25. A. A student athlete shall not use a postsecondary institution’s marks for the purpose of securing compensation for use of his or her name, image, or likeness unless authorized by the institution.

B. A student athlete shall not enter into a name, image, and likeness agreement involving a commercial product or service that conflicts with a written policy of the postsecondary institution or that negatively impacts or reflects adversely on the postsecondary institution or its athletic programs including, but not limited to, generating public disrepute, embarrassment, scandal, ridicule or otherwise negatively impacting the reputation or the moral or ethical standards of the postsecondary institution.

C. A contract for the use of a student athlete’s name, image, or likeness or a contract for professional representation related to name, image, or likeness that is formed while the student athlete is participating in an intercollegiate sport at a postsecondary educational institution may not extend beyond the student athlete’s participation in the sport at the institution.

D. A postsecondary institution may adopt reasonable time, place, and manner restrictions to prevent a student athlete’s name, image, or likeness activities from interfering with team activities, the postsecondary institution’s operations, or the use of the institution’s facilities. A postsecondary institution may receive compensation for the use of its institutional marks or facilities in conjunction with a student athlete’s name, image, and likeness activities.

E. A collegiate athletic association shall not prohibit a postsecondary institution from establishing agreements with a third party entity to act on its behalf to identify, facilitate, enable, or support student athlete name, image, and likeness activities.

F. An institution may require a student athlete to take courses or receive education or training in contracts, financial literacy, or any other subject the postsecondary institution deems necessary to prepare a student athlete to engage in name, image, and likeness activities.

SECTION 5. AMENDATORY 70 O.S. 2021, Section 820.26, is amended to read as follows:

Section 820.26. The provisions of the Student Athlete Name, Image and Likeness Rights Act shall be effective immediately.

SECTION 6. A new section of law to be codified in the Oklahoma Statutes as Section 820.27 of Title 70, unless there is created a duplication in numbering, reads as follows:

A. A collegiate athletic association shall not and shall not authorize its member institutions to:

1. Prevent a student athlete at a postsecondary institution from earning compensation from the use of his or her name, image, or likeness;

2. Provide a prospective student athlete with compensation in relation to the use of his or her name, image, or likeness;

3. Penalize a student athlete or prevent a student athlete from full participation in an intercollegiate sport because he or she obtains professional representation or receives assistance with services associated with name, image, or likeness activities including with contracts or other legal matters from an individual, entity, or a postsecondary institution; or

4. Allow compensation earned by a student athlete for the use of his or her name, image, or likeness or athletic reputation to affect the amount, duration, or renewal of or eligibility for any athletic grant-in-aid or other institutional scholarship; provided, however, compensation earned by a student athlete for the use of his or her name, image, or likeness or athletic reputation may be used for the calculation of income for determining eligibility for need based financial aid.

B. A collegiate athletic association shall not and shall not authorize its member institutions to:

1. Prevent a postsecondary institution from participation in intercollegiate athletics because a student athlete in attendance has previously earned or intends to earn compensation for the use of his or her name, image, or likeness;

2. Entertain a complaint, open an investigation, or take any other adverse action against a postsecondary institution for engaging in any activity protected in the Student Athlete Name, Image and Likeness Rights Act or for involvement in student athlete name, image, or likeness activities; or

3. Penalize a postsecondary institution from participation in intercollegiate athletics because an individual or entity whose purpose includes supporting or benefitting the postsecondary institution or its athletic programs violates the collegiate athletic association’s rules or regulations with regard to student athlete name, image, or likeness activities.

C. No postsecondary institution’s employees, including athletics coaching staff, shall be liable for any damages to a student athlete’s ability to earn compensation for the use of the student athlete’s name, image, or likeness resulting from decisions and actions routinely taken in the course of intercollegiate athletics.

SECTION 7. AMENDATORY 70 O.S. 2021, Section 822.1, is amended to read as follows:

Section 822.1. As used in Sections 822.2 and 822.3 of this title:

1. “Immediate family” means a spouse, parent, legal guardian, child, sibling, grandparent, domestic partner or any individual whose close association with the student-athlete is the practical equivalent of a family relationship;

2. “Person” means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, firm or any other legal or commercial entity;

3. “Student-athlete” shall have the same meaning as defined in the Revised Uniform Athlete Agents Act; and

4. “Transaction” means any action or set of actions occurring between two or more persons for the sale or exchange of any property or services.

SECTION 8. It being immediately necessary for the preservation of the public peace, health or safety, an emergency is hereby declared to exist, by reason whereof this act shall take effect and be in full force from and after its passage and approval.

Tax Implications

FAQ’s

Oklahoma NIL FAQ’s

What is the Oklahoma NIL Law?

The Oklahoma NIL Law, also known as the “student-athlete name, image and likeness rights act”, centers on allowing student-athletes to be paid for their name, image, and likeness.

When does Oklahoma NIL Compliance Start?

Oklahoma NIL started on July 1, 2021, per the NCAA Interim Policies and with the passage of Senate Bill 48, Oklahoma State NIL laws will take effect in the fifth academic year following the date of enactment.

How does Oklahoma NIL affect NCAA Student-Athletes?

Oklahoma NCAA Student-Athletes will be able to earn compensation for the use of her or his name, image, or likeness (NIL) through a multitude of different opportunities. Student-Athletes can now make money for things such as endorsements, sponsorships, appearances, autographs, memorabilia, podcasts, camps, clinics, private lessons, crowdfunding, and many more!

What are Oklahoma Name, Image, and Likeness Best Practices?

Both athletes and administrators in the State of Oklahoma should start by making sure they have a proper understanding of the rules and regulations set-forth by Senate Bill 48. A working-knowledge of the ‘Dos and Don’ts’ for Oklahoma NIL will allow all parties to safely and successfully navigate the new landscape. The next most important aspect would be the compliance component of NIL. Not only do students need to make sure they are entering agreements that are compliant with the passed state regulations, but they need to make sure they are transparent with their school to avoid any institutional conflicts.

Colleges / Institutions

NCAA Oklahoma Schools

What schools are affected by Oklahoma NIL?

All institutions with NCAA athletic programs are affected by NIL. In the state of Oklahoma, the following schools will be affected:

Oral Roberts University
Oklahoma State University
The University of Tulsa
University of Oklahoma

Cameron University
East Central University
Northeastern State University
Northwestern Oklahoma State University
Oklahoma Baptist University
Oklahoma Christian University
Rogers State University
Southeastern Oklahoma State University
Southern Nazarene University
Southwestern Oklahoma State University
University of Central Oklahoma

NAIA

Langston University
Mid-America Christian University
Oklahoma City University
Oklahoma Panhandle State University
Oklahoma Wesleyan University
Southwestern Christian University
University of Science and Arts of Oklahoma

NJCAA

Carl Albert State College
Connors State College
Eastern Oklahoma State College
Murray State College
Northeastern Oklahoma A&M College
Northern Oklahoma College – Enid
Northern Oklahoma College – Tonkawa
Redlands Community College
Rose State College
Seminole State College
Western Oklahoma State College

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Oklahoma NIL Law for NCAA

Oklahoma NIL Law

Oklahoma NIL Tax Implications

Oklahoma NIL FAQ’s

What is the Oklahoma NIL Law?

When does Oklahoma NIL Compliance Start?

How does Oklahoma NIL affect NCAA Student-Athletes?

What are Oklahoma Name, Image, and Likeness Best Practices?

NCAA Oklahoma Schools

What schools are affected by Oklahoma NIL?

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