Louisiana governor signs order to allow schools to pay college athletes
LSU quarterback Garrett Nussmeier looks to throw downfield against the Oklahoma Sooners at Tiger Stadium on Nov. 30, 2024, in Baton Rouge. ()
Louisiana Gov. Jeff Landry signed an executive order Tuesday that aims to give colleges and universities legal cover to directly pay college athletes.
The order purports to prohibit the NCAA, an athletic conference or another organization with oversight of college athletics from taking action against Louisiana schools that directly compensate athletes, pay them for use of their name, image and likeness (NIL) or facilitate NIL deals for the athlete.
The order, similar to one Georgia Gov. Brian Kemp signed last year, would not allow schools to use state money to pay athletes.
Athletic directors at LSU and Southern University praised the governor's order.
'This will afford all higher education institutions in the state of Louisiana the ability to remain nimble and at the forefront of the ever-changing college athletics landscape,' LSU Athletic Director Scott Woodward said in the governor's news release.
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While NCAA rules currently prohibit the paying of players, athletes are allowed to make money through NIL endorsement deals.
Landry's order would become moot if Congress approves legislation to regulate NIL deals or if a settlement is finalized in a lawsuit against the NCAA over compensation owed to former college athletes who weren't paid for use of their name, image or likeness. The settlement is expected to set the stage for revenue sharing with college athletes — and possibly pave the way for direct payments to them.
The Louisiana Legislature is considering new proposals on name, image and likeness, including two bills that would exempt athletes' NIL money from state income tax.
House Bill 166 by Rep. Dixon McMakin, R-Baton Rouge, would exempt the entirety of athletes' NIL income from the state taxes. McMakin, an LSU alum whose father played baseball for the Tigers in the 1970s, said he proposed the legislation because LSU is competing for athletes against states like Texas that don't have an income tax.
House Bill 168 by Rep. Rashid Young, D-Homer, would exempt the first $12,500 of athletes' NIL income from state taxes. That aligns the exemption with the standardized deduction offered to every other Louisiana resident. It's not clear if this legislation is necessary for the athletes to receive the deduction, but Young said he wanted to make sure they get it.
Young has also proposed a resolution to create a task force to study the need for increased transparency on name, image and likeness along with related issues.
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