Pennsylvania becomes latest state to overhaul NIL legislation, gives collectives more power

A bill refining Pennsylvania’s existing NIL law has been signed by Gov. Tom Wolf.

Pennsylvania House Bill 2633 passed the state Senate 49-0 with the state House concurring 199-0 before it was signed into law by Wolf late last week.

The biggest change in the new law is that it removes language that prohibits schools from arranging NIL deals for their student-athletes. Plus, the new law eliminates the requirement that student-athletes must share their contract with the school at least seven days prior to execution.

“This is a small, but important clarification that will give student-athletes more agency over their private contracts and the money they earn as a result,” Pennsylvania State Sen. Scott Martin said. “In the absence of national standards around NIL compensation by the NCAA or Federal Law, we must do everything we can here in Pennsylvania to make sure every student-athlete that chooses one of our schools is treated fairly.”

The previous law, Senate Bill 381, required student-athletes to disclose any potential NIL deals “at least seven days prior to execution of the contract to an official of the institution of higher education, who is designated by the institution of higher education.”

New law similar to others that have made changes

The new law in Pennsylvania mirrors moves made by other states to relax NIL laws and keep executed deals confidential. It also more openly allows room for college officials to participate in NIL discussions with college student-athletes.

“Pennsylvania was one of the first states to have its NIL bill become effective when it was passed on June 30, 2021, and then go live the following day,” said Dan Greene, an NIL expert and associate attorney at Newman & Lickstein in Syracuse, N.Y. “But, as many quickly learned, certain states’ NIL laws were far more restrictive than the NCAA’s interim policy, which put their colleges and its athletes at a disadvantage.

“In this calendar year, we’ve seen Alabama, Illinois, Louisiana, Mississippi, Missouri, South Carolina and Tennessee either repeal, amend or suspend its NIL law for the same or similar reasons.”

NIL College Rules
NIL High School Rules

Experts say coaches and recruiters at schools like Penn State and Pitt have to be excited about being able to more openly discuss and participate in the NIL process with student-athletes already on campus.

It could also further strengthen collectives at both Penn State and Pitt as they battle to impact high school recruiting, player retention and the players in the Transfer Portal. Both schools feature two of the strongest booster-led groups in the country with Alliance 412 at Pitt and Success With Honor at Penn State. We Are and Lions Legacy Club are two other collectives representing Nittany Lion student-athletes.

Pennsylvania could become next to allow NIL on HS level

Pennsylvania is also on the verge of becoming the next state to approve NIL at the high school level.

In October, the Pennsylvania Interscholastic Athletic Association board of directors unanimously passed on the second reading of an amendment to the association’s rulebook allowing NIL deals for high school athletes, with some parameters.

The amendment must pass one more vote in December. However, PIAA Executive Director Bob Lombardi told the Pittsburgh Post-Gazette that NIL could go into effect immediately if passed in December.

The proposal would allow student-athletes to obtain commercial endorsements and earn money from promotional activities, including a social media presence. However, no one affiliated with the high school or employed by the school may arrange for NIL deals or pay players.

Student-athletes can’t reference the PIAA or any member school, team or team nickname in NIL ads. Additionally, they may not promote third-party entities or goods during team or school activities. They also can’t wear or display a company logo or insignia from a NIL deal during team activities, unless that logo or insignia is part of the team uniform. NIL deals must also be reported to the school’s administration.

The proposed policy mirrors the 19 other states across the country where NIL is allowed for high school student-athletes.