Harrisburg, Pa. – June 25, 2021 – Pennsylvania athletes may soon be able to earn compensation from their name, image and likeness, thanks to a bill that passed the General Assembly, Senate Democratic Leader Jay Costa announced Friday night.
“There is an immense amount of money surrounding college athletics, and the players that attract attention to their sports have not been fairly compensated for their skills and work,” said Senator Costa. “I’m pleased with the efficiency we worked with here at the state level to grant all the appropriate permissions for our athletes to be compensated in their upcoming seasons.”
State law regarding athlete compensation was changed as part of a budget related bill, commonly referred to as the School Code. The language provides for the following:
- Authorizes college student athletes (athletes) to earn compensation for the use of the athlete’s name, image or likeness (compensation).
- Prohibits institutions of higher education (institutions) from: 1. hindering athletes earning compensation, and 2. attempting to recruit athlete by using third party compensation for name, image or likeness as an incentive.
- Prohibits the NCAA and other such intercollegiate athletic entities (entities) from: 1. preventing athletes from earning compensation; preventing an institution from participating in intercollegiate athletics due to athletes’ earning compensation.
- Requires persons making a profit on college team merchandise to make a royalty payment to each athlete whose name, image or likeness is used on the merchandise.
- Prohibits institutions and entities from interfering with athletes’ participation in athletics due to obtaining professional representation for name, image or likeness rights.
- Prohibits entities from interfering with institutions’ participation in intercollegiate athletics due to athletes obtaining professional representation for name, image or likeness rights.
- Provides that an athlete’s scholarship cannot be used to limit the athlete’s right to use name, image or likeness except as required in federal or state student aid guidelines.
- Prevents institutions and entities from being required to assist name, image and likeness compensation opportunities for athletes.
- Authorizes institutions to prohibit athletes name, image and likeness rights that conflict with institutions’ existing sponsor arrangements, or with institutions’ values.
- Provides athletes with State law protections and right to adjudicate, and the right to file a private civil action for a violation under the article.
The enabling legislation has passed the House and Senate; it now awaits a final signature from Governor Tom Wolf.
Six other states have similar laws that will permit athletes to earn compensation starting July 1.
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