Missouri Gov. Mike Parson signs advantageous NIL bill into law

Missouri Gov. Mike Parson signed House Bill 417 into law on Thursday night. The amended NIL legislation is one of the most advantageous in the country. It prevents the NCAA or athletic conferences from entertaining a complaint, opening an investigation or taking any other adverse action against an institution or its employees for engaging in protected NIL activities.

Parson announced on Twitter that he signed 31 bills, which included the NIL-related bill. The new NIL law goes into effect on August 28.

The news comes just one week after the NCAA released a memo with a directive, if not a warning, to member schools located in states where legislators have passed friendly amendments, which include barring the NCAA or conferences from taking action against schools for NIL activities.

“The Association has been clear and maintains that schools must adhere to NCAA legislation (or policy) when it conflicts with permissive state laws,” the memo stated. “In other words, if a state law permits certain institutional action and NCAA legislation prohibits the same action, institutions must follow NCAA legislation.”

Through the first two academic years of the NCAA’s NIL era, the NCAA has yet to announce any violations of its interim NIL policy.

What’s in Missouri’s new law?

In addition to protecting in-state schools and their employees from adverse action from the NCAA or a conference, Missouri’s new law allows employees, including coaches, to identify, create and negotiate NIL deals. The law allows public charities with 501(c)(3) status to enter into NIL agreements and it protects contract terms under the Family Educational Right to Privacy Act (FERPA).

Plus, maybe most importantly, high school student-athletes can earn NIL compensation after signing a National Letter of Intent or another written agreement to enroll at an in-state institution.

After Gov. Parson received the bill in May, but before he signed it, Missouri Representative Kurtis Gregory, who was a starting right guard for Missouri, told On3, “I feel like we’re at the top in terms of what we have in statute right now.”

Mizzou athletic officials expressed their support of the new law in a release from the school’s athletic department.

“We are extremely grateful for the hard work of our state legislators to advance all of Missouri’s higher-education institutions through this NIL amendment,” Mizzou athletic director Desireé Reed-Francois said in the release. “This amendment will provide our schools and our current and future student-athletes with the flexibility needed to remain competitive, as the State of Missouri continues to lead the way in the modern-day evolution of intercollegiate athletics. We look forward to the next steps in this important process.”

Tigers’ football coach Eliah Drinkwitz said, “This bill represents another step forward in allowing us to be extremely competitive in the NIL landscape. We are excited about what that means for Mizzou Football.” Mizzou basketball coach Dennis Gates said the new legislation will “help our players maximize their value as we strive to win championships on the court and in the classroom.”

Missouri follows Texas, New York with new NIL laws

The state of Missouri follows recent legislative changes in Texas and New York.

Texas Gov. Greg Abbott signed a bill into law that took effect July 1 and provides similar protections.

On Monday, New York Gov. Kathy Hochul signed a bill that specifically named the NCAA among the associations or conferences “shall not authorize its member institutions to penalize or prevent a college from participation in intercollegiate athletics because an individual or entity whose purpose includes supporting or benefitting the college or its athletic programs or student-athletes violates the collegiate athletic association’s rules or regulations with regard to a student-athlete’s name, image, or likeness activities.”

Lawmakers in Arkansas, Colorado, Montana and Oklahoma have also recently passed bills to prevent the NCAA from launching investigations into NIL activities. Lawmakers in Michigan have also expressed an interest in researching new NIL legislation.