MSU alum and Michigan House Representative D-9th District Joe Tate introduced a bill on June 12 to limit NCAA regulations on name, image and likeness payments to college athletes.
Tate, an offensive lineman at MSU from 2000-2003 and former Michigan speaker of the house, presented HB 4643 to block the NCAA, athletic conferences and universities from interfering with athletes looking to collect on NIL funds.
"There are conflicts with the Michigan statute that we have on the books allowing student-athletes to take advantage of their name, image and likeness while they are at the university that they are participating in and as a student," Tate said. "It prohibits any entity from limiting a student-athlete's ability to take full advantage of their name, image and likeness."
On June 5, a settlement in the House v. NCAA case made way for athletic departments to pay student-athletes directly from university funds, ushering in a new era of NIL in college athletics. The ruling limited the power of third parties and NIL collectives to pay student-athletes.
The bill would circumvent this ruling, allowing athletes and third parties to determine a "fair market value" according to Tate.
In congruence with the House settlement, the NCAA is asking power conferences, including the Big Ten, to comply with the NCAA rules even if it means breaking state laws like HB 4643.
It is unclear how this will unfold between the NCAA and states in the coming months. Industry leaders have called on Congress to enact a law preventing student-athletes from becoming employees and provide the NCAA with antitrust exemptions.
The president of Charitable Gift America and a prominent NIL collective, Dr. Tom Dieters, sponsoring MSU athletes like baseball’s Joseph Dzierwa, said the new bill would allow for athletes to earn compensation without the limits of the university or NCAA.
"The new NCAA rules, and they’re not laws, put a cap on compensation or can even prevent the student from getting an NIL contract altogether," Dieters said.
MSU tennis standout Ozan Baris said there is an overwhelming amount of uncertainty in the NIL space and stated this bill would put an end to that.
"That's where NIL is always so beneficial," Baris said. "It gives me that place where I can play tennis and not have to worry about the financial stress of a financially burdening sport at times."
Tate has experienced the difficulty of being a student-athlete and states they deserve the same rights that other students receive. "I know the dedication, sacrifices and challenges that come with balancing academics, athletics and personal growth," he said.
Without the limits imposed by the House v. NCAA case, National College Players Association Executive Director Ramogi Huma said the bill could lead to increased recruiting at universities in the state.
"Student-athletes and their families look at a lot of factors whereas to decide where you go to school," Tate said. "If Michigan is open for business, for student-athletes being able to take advantage of NIL, I would imagine that would be a tool to attract talent into our universities across the state."
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