The landscape of college athletics continues to rapidly shift, and Name, Image, and Likeness (NIL) rights continue to take center stage. Utah is now stepping further into the NIL conversation with House Bill 449 (HB 449), a new proposal that, if passed, would allow Utah’s colleges and universities to directly compensate student-athletes for their NIL—a significant departure from existing NIL structures.
While the bill has cleared the House Education Committee, it still has a long way to go before becoming law. So what does HB 449 actually propose, and what could it mean for college athletes, universities, and the broader landscape of college sports? Let’s break it down.
What HB 449 Proposes
The bill, introduced in the Utah State Legislature, aims to expand NIL opportunities by allowing universities themselves—not just third-party sponsors—to pay student-athletes for the use of their name, image, and likeness. If enacted, this would set Utah apart as one of the first states to allow direct NIL payments from schools.
Here are some of the key provisions of the bill:
✅ Universities Can Pay Athletes for NIL – Schools could enter NIL agreements directly with student-athletes, rather than requiring them to rely solely on outside deals.
✅ No State or Student Fee Funding – The bill prohibits the use of state-appropriated funds or student fees for NIL payments. Schools would have to use private donations, booster funding, or other external revenue sources.
✅ Athletes Remain Non-Employees – The bill makes it clear that receiving NIL compensation from a school does not make an athlete an employee of the university.
✅ Regular Audits for Transparency – The Utah Board of Higher Education would be responsible for auditing NIL-related expenditures every five years, beginning in 2028, to ensure compliance.
Why This Bill Matters
This proposal is significant because it moves beyond traditional NIL models, where deals are typically made between student-athletes and third-party sponsors, such as businesses or brands. By allowing schools to pay athletes directly, Utah could be setting the stage for a new era of NIL compensation—one that integrates more financial support for players while still maintaining compliance with NCAA regulations (at least for now).
Potential Challenges & Questions
While the bill represents a big step forward for student-athletes, it also raises a few important questions:
❓ How will Title IX factor into this? – There’s an ongoing debate over whether direct NIL payments from universities must be distributed equally among male and female athletes. Federal guidance on this issue remains unclear.
❓ What will the NCAA say? – The NCAA has historically pushed back against schools directly paying athletes. However, with House v. NCAA (a major antitrust case) moving through the courts, schools may soon be allowed to revenue-share with athletes anyway.
❓ Will other states follow? – If HB 449 passes, will other states adopt similar policies to stay competitive in recruiting? We’ve already seen states react quickly to NIL changes before.
What’s Next?
As of now, HB 449 is not yet law. It still needs to pass the full Utah House, then the Senate, and ultimately be signed by the Governor before it takes effect. Given the national conversation around NIL rights, this bill could have broader implications beyond Utah, influencing how other states and schools approach athlete compensation.
Regardless of where you stand on NIL, Utah is making a bold move to stay ahead of the curve.
For the latest updates on HB 449, you can track the bill directly through the Utah State Legislature website.
