NCAA’s Charlie Baker believes in federal NIL push, despite states reshaping local legislation

DALLAS – While the NCAA pushes for NIL reform at the federal level, a handful of states have reshaped legislation that attempts to level the playing field for local schools when recruiting and retaining student-athletes who also want to capitalize off NIL.

But the legislation, in turn, skirts the NCAA’s guardrails. And that’s concerning to new NCAA President Charlie Baker.

During a Q&A session Monday at the LEAD1 Association’s annual spring meeting, LEAD1 CEO Tom McMillen asked Baker whether this trend helps or hurts the NCAA’s appeal to Congress for a federal bill.

“If you have every state in your conference out there doing something different with respect to how they’re trying to create what I would describe as the most positive way to manage NIL, or literally just passing laws that basically say, ‘Whatever the NCAA is or what they do they can’t enforce anything in our state,’” Baker said.

“I think the message that creates for members of Congress is and for members in the Senate is, if you want to create a level playing field, if you want people to be able to play by the same rules, if you want what I would describe as a framework that works … Those 97 conferences, I think, especially at the DI level, which is where NIL is a much bigger deal than it is for (DII) and (DIII), they’re going to want everybody playing by the same rules.

“I just have to believe that.”

NCAA ‘can’t enforce anything in our state’

But legislators on the state level across the country have a different viewpoint. They have been hitting fast forward on new laws that could greatly diminish the NCAA’s role in enforcement when it comes to NIL.

Take Oklahoma for example.

In early April, the Oklahoma House of Representatives overwhelmingly passed Senate Bill 840. Then last week, the sweeping bill sponsored by Sen. Greg McCortney breezed through the Oklahoma Senate with a vote of 29-12. The bill is now on Gov. Kevin Stitt’s desk and most observers expect him to sign it.

Interestingly, the bill appears to provide cover for Oklahoma, Oklahoma State, Tulsa and other state schools from being punished by the NCAA for any NIL-related violations, including any committed by collectives that have been set up to support student-athletes through deal facilitation.

According to the bill: “A collegiate athletic association shall not and shall not authorize its member institutions to: Entertain a complaint, open an investigation, or take any other adverse action against a postsecondary institution for engaging in any activity protected in the Student Athlete Name, Image and Likeness Rights Act or for involvement in student-athlete name, image or likeness activities.”

Furthermore, Texas legislators are also considering revamped legislation – House Bill 2804 –  that’s similar to what’s on the governor’s desk in Oklahoma.

According to the Texas bill: “An athletic association, an athletic conference, or any other group or organization with authority over an intercollegiate athletic program at an institution to which this section applies may not enforce a contract term, a rule, a regulation, a standard, or any other requirement that prohibits the institution from participating in intercollegiate athletics or otherwise penalizes the institution or the institution ’s intercollegiate athletic program for performing, participating in, or allowing an activity required or authorized by this section.”

Plus, Arkansas also recently signed a similar bill in mid-April to allow schools and fundraising foundations to source NIL deals for athletes. The Arkansas bill also gives all 501(c)(3) collectives, including athletics fundraising foundations, the right to enter into deals with athletes.

Athletic leaders still believe in federal legislation

Those are just a smattering of states that have been revamping their state NIL laws at a brisk pace. But McMillen – who is a former Congressman and now leading the group that advocates on policy issues facing FBS athletic departments – recently told On3 that pursuing an NIL-only bill on the federal level is still a wise course of action.

“I think that he should focus on a national NIL bill and not deal with the employment and antitrust issues right now,” McMillen told On3 in March. “The reason I say that is because I think the climate is right for NIL. But there has not been enough spadework on antitrust issues and the employment issue. I think that will take several years of spadework, and he’s got to really mobilize his army.

“Those 1,200 schools in the NCAA, I’ll tell you what they all agree on: They agree that we need a consistent national standard on NIL. I can’t believe there’s a school that wouldn’t go along with that. That’s pretty important to have 1,200 schools (with a consensus). They all have a congressman. They all have two senators, and they all have spheres of influence. That has to be mobilized.”