Gov. Stitt Signs Oklahoma NIL Bill: What It Means for Student-Athletes

Oklahoma Governor Kevin Stitt has signed an executive order allowing colleges and universities in the state to directly compensate student-athletes for their name, image, and likeness (NIL). This landmark move aims to keep Oklahoma competitive in the rapidly changing world of collegiate athletics by ensuring student-athletes can benefit financially while maintaining eligibility and compliance with state laws.

Background and Motivation

The new executive order builds upon Senate Bill 840, which was passed in 2024. The bill was designed to remove previous restrictions on NIL representation, enabling more flexibility for athletes and schools in managing deals. Oklahoma lawmakers argue that previous regulations placed state schools—such as the University of Oklahoma (OU), Oklahoma State University (OSU), and the University of Tulsa (TU)—at a disadvantage compared to other states where NIL rules were less restrictive.

Neighboring states like Arkansas and Texas have already revised their NIL laws to provide more opportunities for student-athletes. Without similar reforms, Oklahoma risked losing top talent to states with more favorable NIL conditions.

Key Provisions of the Order

Governor Stitt’s executive order introduces several important changes:

1. Direct Payments by Schools – Colleges and universities in Oklahoma can now directly compensate student-athletes for NIL deals. Previously, payments had to come from third-party organizations or collectives.

2. Protection from NCAA Investigations – The order prevents the NCAA or other athletic associations from penalizing schools or athletes for engaging in NIL activities allowed under Oklahoma law.

3. Creation of NIL Funds – The law allows institutions to set up foundations to collect contributions from boosters and businesses, creating a streamlined way to distribute NIL funds to student-athletes.

4. Financial Literacy Requirements – Schools may require student-athletes to take courses in financial literacy and contract law to better manage their NIL earnings.

5. Use of School Logos and Facilities – While student-athletes cannot use school logos in NIL deals, schools themselves can monetize their brand in NIL partnerships, ensuring institutions benefit from sponsorships as well.

Impact on Oklahoma Schools and Athletes

This order is expected to level the playing field for Oklahoma schools when recruiting and retaining top athletes. With direct payments now possible, universities can offer more competitive NIL deals, preventing student-athletes from transferring to states with more lucrative opportunities.

Additionally, athletic departments at OU, OSU, and TU—along with officially recognized NIL collectives like “1Oklahoma” (OU), “Pokes with a Purpose” (OSU), and “Hurricane Impact” (TU)—will play a bigger role in supporting student-athletes financially.

Potential Challenges and Controversy

While many view the order as a necessary step, some critics argue that it could blur the lines between NIL compensation and “pay-for-play”—a system where athletes are essentially paid salaries by their schools. The NCAA has strict rules against boosters directly influencing recruiting, and this order might push the limits of what is permissible under current guidelines.

Furthermore, federal NIL legislation is still in flux, meaning Oklahoma’s approach could be challenged or overridden by future national rules. If Congress passes stricter NIL laws, schools may need to adjust their policies once again.

Conclusion

Governor Stitt’s NIL order marks a major shift in how Oklahoma approaches student-athlete compensation. By allowing direct payments and protecting schools from NCAA penalties, the state has positioned itself as a leader in the evolving NIL landscape. However, potential legal battles and the ongoing debate over pay-for-play models mean that the effects of this decision w

ill continue to unfold in the coming years.