Summary
The new law is scheduled to take effect July 1. It is the first in any state to make it illegal for the NCAA to punish a school for compensating athletes for their NIL rights. Virginia's new law puts Virginia schools in a good position for both the current NIL marketplace and other forms of payment. "There is a better model and a better compromise," says Babcock. The council-approved plans stop short of allowing the schools to pay players directly. The new NCAA rules won't be officially adopted until they are approved by the Division I board of directors next week. NCAA president proposed in December that all schools should be able to pay athletes via NIL deals as part of a three-pronged plan to modernize the rules. At least six other states have pending legislation that addresses their schools' ability to pay NIL Deals. Virginia was one of two states that sued the NCAA earlier this year over restrictions on when athletes can sign NIL deals. A judge in that case granted an injunction that now allows booster collectives and other third parties to make NIL offers to athletes before they enroll in their schools.
