Oklahoma Legislature Passes Major NIL Reform Bill Amid Growing Competition
Oklahoma lawmakers have passed a transformative bill aimed at reshaping the state’s Name, Image, and Likeness (NIL) landscape for college athletes, positioning local universities to be more competitive in recruiting and retaining top talent. Senate Bill 840, which passed with significant support in both legislative chambers, is now awaiting Governor Kevin Stitt’s signature.
What the New NIL Bill Changes
The key aspects of SB 840 include:
Loosening representation restrictions: Previously, only attorneys or registered agents could represent athletes in NIL deals. This requirement is now lifted, allowing more flexibility in athlete representation.
University involvement in NIL deals: Schools are now permitted to form agreements with third-party entities to facilitate NIL opportunities for athletes, aligning Oklahoma with states like Arkansas and Texas, which have taken similar steps.
Protection from NCAA penalties: The bill prevents the NCAA from penalizing Oklahoma universities for NIL-related activities that are legal under state law. This provision is seen as a shield against NCAA enforcement, which some view as inconsistent and restrictive.
Compensation for university resources: Schools can now receive compensation if their logos or facilities are used in NIL-related activities. However, athletes are prohibited from using official school logos to secure NIL deals.
Educational requirements: Athletes will be required to take courses in contract law and financial literacy to better navigate the complexities of NIL deals.
Why Oklahoma Pushed for Change
Supporters of the bill, including Representative Jon Echols, argue that Oklahoma’s previous NIL regulations put local universities like the University of Oklahoma (OU), Oklahoma State University (OSU), and the University of Tulsa (TU) at a disadvantage in the NIL market. The new bill levels the playing field, especially as OU prepares to enter the SEC in 2024, a conference known for its aggressive NIL strategies.
“If we don’t pass this bill, we might as well shut down OU and OSU athletics,” Echols stated, emphasizing the bill’s importance for keeping Oklahoma’s schools competitive.
Several states, including Arkansas, Texas, Missouri, and New York, have passed similar laws to prevent the NCAA from interfering with NIL-related activities at public universities. The movement is part of a broader effort to grant schools more control over how they handle NIL while reducing the risk of NCAA investigations.
The Impact on Recruiting and the NCAA’s Response
The new law is expected to significantly boost Oklahoma’s recruiting efforts by allowing universities to endorse and directly work with NIL collectives. For example, OU’s “Crimson and Cream” collective and OSU’s “Pokes with a Purpose” collective will now have clearer pathways to fundraising and deal-making with student-athletes.
Coaches and athletic directors at OU, OSU, and TU have praised the move, stating it provides stability and clarity for student-athletes and donors. “Every coach in Oklahoma is happy this veto was overridden,” one in-state coach told On3, referring to an earlier attempt by Gov. Stitt to block NIL reform.
The NCAA’s response remains uncertain. With multiple states enacting similar laws, there is speculation that the governing body may push for federal legislation to standardize NIL regulations nationwide. NCAA President Charlie Baker has been advocating for a federal NIL framework to prevent a patchwork of differing state laws.
What’s Next?
With Gov. Stitt expected to sign SB 840 into law, Oklahoma universities will be able to fully integrate NIL deals into their recruiting strategies without fear of NCAA penalties. This move is particularly critical as universities gear up for the next wave of recruiting battles, where NIL opportunities play an increasingly central role.
As more states follow suit, the pressure on the NCAA to reform its NIL policies or cede more power to schools and state governments will likely continue to grow. For Oklahoma, however, the passage of this bill signals a new era in college athletics—one in which universities have more control over th
eir athletes’ financial opportunities.
