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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
student athletes; employment status; restrictions
Purpose
Prohibits an athletic association, athletic conference or other organization from preventing a postsecondary education institution from compensating a student athlete or enabling a student athlete to receive compensation for the use of the student athlete's own name, image or likeness (NIL). Specifies that a student athlete receiving compensation for the use of the student athlete's NIL does not affect the student athlete's employment status or qualify the student athlete for classification as an employee of a postsecondary education institution.
Background
Any postsecondary education institution that competes in an intercollegiate sport must allow a student athlete to earn compensation from the use of the student athlete's own NIL to the extent allowed by the rules established by the relevant national association for promoting or regulating collegiate athletics.
A student athlete may not be denied a scholarship, have a scholarship revoked, be deemed ineligible for a scholarship or be deemed ineligible for participating in intercollegiate athletics based on earning compensation for the student athlete's NIL. Statute does not authorize a student athlete to enter into a contract providing compensation for the athlete's NIL if doing so violates the intellectual property rights of any person, including the student athlete's postsecondary education institution, or conflicts with the student athlete's team contract (A.R.S. ยง 15-1892).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Prohibits an athletic association, athletic conference or other organization with authority over intercollegiate athletics from preventing a postsecondary education institution from:
a) compensating a student athlete for the use of the student athlete's NIL;
b) sharing with student athletes the revenue that a postsecondary education receives for the commercial use of the student athlete's own NIL; and
c) identifying, creating, negotiating with, facilitating, supporting, engaging with, assisting or otherwise enabling a student athlete to participate in an opportunity to receive compensation for the use of the student athlete's own NIL.
2. Determines that a student athlete's ability to receive compensation from use of the student athlete's NIL does not:
a) affect the employment status of the student athlete; or
b) qualify a student athlete for classification as an employee of a postsecondary education institution solely on the basis of the outlined activities.
3. Specifies that, for the purposes of the prohibition on preventing participation in an opportunity to receive compensation, a postsecondary education institution includes any supporting foundation or entity acting on behalf of the postsecondary education institution.
4. Makes conforming changes.
5. Becomes effective on the general effective date.
Prepared by Senate Research
February 10, 2025
MH/SDR/ci