Texas Colleges Could Soon Pay Athletes for First Time

Newsweek

28-05-2025

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A bill making its way through the Texas legislature could see the state's colleges pay their student athletes for the first time.
The Texas state senate unanimously passed a bill on Tuesday that would allow universities to enter into name, image, and likeness (NIL) deals directly with their athletes, either as compensation for team-sanctioned events in which they participate or as an incentive for enrollment.
This differs from previous NIL legislation, which allowed deals to be struck between intercollegiate athletes and outside parties such as advertisers.
Why It Matters
Compensating student athletes has remained a contentious issue given the popularity and profitability of college sports in the United States, with many arguing the athletes themselves should be entitled to a share of the revenue they generate. Supporters of the current bill argue that this will also give colleges extra leverage to ensure talent is not lost to other states.
Opponents, however, maintain that providing students with compensation beyond scholarships could undermine educational integrity and the longstanding amateurism model of collegiate sports.
With one of the largest student athlete populations in the country, behind only California, the landmark Texas bill could see more states following suit.
What To Know
The NIL compensation bill passed through the Texas House in April and the Senate Education Committee earlier this month. Representative Carl Tepper, who drafted House Bill 126, told lawmakers during one debate: "We will be killing college football in Texas if we do not pass this bill."
According to the amended bill, which passed in the Senate on Tuesday, student athletes will still be barred from receiving compensation for the endorsement of alcohol, tobacco and nicotine products, as well as steroids, gambling, firearms or any "sexually oriented business."
The Texas Longhorns celebrate a touchdown during the Goodyear Cotton Bowl Classic against the Ohio State Buckeyes on January 10, 2025.
The Texas Longhorns celebrate a touchdown during the Goodyear Cotton Bowl Classic against the Ohio State Buckeyes on January 10, 2025.
Steve Limentani/The legislation follows several high-profile challenges to the National Collegiate Athletic Association's (NCAA) rules regarding student athlete compensation. This includes the imminent settlement in House v. NCAA, a class-action lawsuit filed by several college athletes against the Association and its five largest conferences.
The parties agreed to pay just under $2.8 billion in back damages to student-athletes who competed between 2016 and 2024 but were denied NIL benefits during their college attendance. The settlement still awaits final approval from United States District Judge Claudia Wilken.
Senator Brandon Creighton, who sponsored the latest bill in the Texas Senate, cited the NCAA settlement as a motivation, saying: "We have to continue to work – especially with settlements like this – to bring any common sense and consistency possible to what has been considered the Wild West for name, image, and likeness and paying college athletes."
What People Are Saying
Texas state Representative Mitch Little, during a debate in April: "The university enters into an NIL contract with a student athlete [and] says: 'We're going to pay you $4 million to come and play college football here.' And then they get on campus, and the university decides 'you stink. We're not going to pay you the rest of this NIL contract.' What am I supposed to tell that student athlete?"
What Happens Next
The Texas compensation bill now awaits the signature of Governor Greg Abbott and could take effect as soon as September 1, according to The Texas Tribune.