Beshear signs bill allowing Kentucky student-athletes to sign NIL deals with their schools

LOUISVILLE, Ky. (WDRB) -- Kentucky Gov. Andy Beshear signed into law Thursday a bill that will allow student-athletes in the state to get Name, Image and Likeness deals with their own universities.

Senate Bill 3 is a response to a landmark 2024 settlement in which the NCAA and the nation's five biggest conferences announced that they agreed to pay nearly $2.8 billion to settle a host of antitrust claims, a monumental decision that set the stage for a groundbreaking revenue-sharing model that could start steering millions of dollars directly to athletes as soon as the 2025 fall semester.

"College athletes will finally be able to share in the billions of dollars their compelling stories and dynamic performances have generated for their schools, conferences, and the NCAA," the filing said. "This is nothing short of a seismic change to college sports following more than four years of hard-fought victories in this case."

Last month in Frankfort, Josh Heird and Mitch Barnhart, athletic directors at the University of Louisville and University of Kentucky, respectively, testified Thursday in front of the Senate Education Committee in support of the bill.

"This industry has evolved," Heird said. "It has evolved significantly, but every industry evolves. And so if we can work together to create a framework so we are all cohesively working together for what's best in college athletics, that's where I'd like to see the future go."

"It's a critical issue," Barnhart said. "A lot of times we compete, but, on this, we're on the same team. We both need help as we continue to adjust to the landscape that's in front of us."

The deal must still be approved by a judge.

The Kentucky Lantern reported last month that Sen. Max Wise, R-Campbellsville, who sponsored the bill, said beyond the direct university-to-student payments, it would allow the universities to sublicense NIL deals to third parties, creating more avenues for profit.

"It's a time for us to act, and it's a time for us to update to make sure that the commonwealth of Kentucky and our universities are not left behind when it comes to college athletics," Wise said.

Last year, NCAA President Charlie Baker called the settlement "an important step in the continuing reform of college sports that will provide benefits to student-athletes and provide clarity in college athletics across all divisions for years to come."

Terms were not disclosed, though some details emerged in ensuing weeks signaling the end of the NCAA's bedrock amateurism model that dates to its founding in 1906. Some other states, including Kentucky's neighbors in Ohio and West Virginia, have already made changes to their NIL laws in anticipation. Indeed, the days of NCAA punishment for athletes driving booster-provided cars started vanishing three years ago when the organization lifted restrictions on endorsement deals backed by so-called Name, Image and Likeness money.

Baker confirmed what he had previously said directly to the schools — that the NCAA will pick up about $1.2 billion of that tab, with schools on the hook for the rest. The NCAA can afford the payments because of a rosier-than-expected financial situation.

He said the NCAA expects to generate nearly $100 million more in ticket sales ($277 million) to its championships in fiscal 2025 than in fiscal 2023. And he said TV revenue is up 19% — by $180 million — over the same time period.

With Beshear's signature, the bill is set to take effect immediately in Kentucky. But a federal judge still needs to rule on the settlement, which is expected April 7.

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