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Understanding Ohio House Bill 660: A Game-Changer for Student-Athletes

Client Alert
December 13, 2024

Understanding Ohio House Bill 660: A Game-Changer for Student-Athletes
Ohio House Bill 660 aims to revolutionize Ohio’s approach to Name, Image, and Likeness (NIL) agreements for student-athletes, building on the framework established by Governor Mike DeWine’s Executive Order 2021-10D. This legislation has the potential to create new financial opportunities for student-athletes while simplifying the regulatory landscape for universities. If passed, this bill will have far-reaching implications for Ohio’s higher education institutions and their athletes. Here’s what you need to know.

Key Provisions of Ohio House Bill 660

1. Direct Compensation for Student-Athletes

  • Universities can directly pay student-athletes for the use of their NIL, bypassing the need for third-party intermediaries. This provision reduces bureaucratic hurdles and streamlines the process for athletes to receive compensation.

2. Professional Representation

  • Student-athletes can obtain professional representation, such as agents or attorneys, to negotiate NIL agreements. This ensures that athletes have the opportunity to utilize expertise to assist with securing lucrative and fair contracts.

3. Clarification of Employment Status

  • The bill explicitly states that receiving NIL compensation does not classify student-athletes as employees, preserving their amateur status while allowing financial opportunities.

4. Protection from Restrictions

  • The bill prohibits athletic authorities from penalizing schools or athletes for participating in NIL deals, ensuring financial freedom and reducing fear of reprisal.

5. Simplified NIL Framework

  • By codifying the Executive Order, the bill aims to reduce administrative burdens and create a more transparent system for institutions and athletes alike.

Financial Implications for Student-Athletes

1. Expanded Opportunities

  • With the ability to enter NIL agreements, student-athletes can earn money through endorsements, promotional appearances, and more. High-profile stident-athletes may secure deals worth millions, significantly boosting their financial prospects.

2. Tax Responsibilities

  • NIL payments will be considered taxable income, requiring athletes to manage their finances carefully. Consulting tax professionals to track earnings and make estimated payments will be crucial.

3. Enhanced Earnings Potential

  • The removal of restrictions opens doors for more substantial financial opportunities, empowering athletes to capitalize on their unique marketability while still in school.

Challenges and Considerations
While Ohio House Bill 660 presents exciting opportunities, it also introduces challenges:

  • Power Dynamics: Universities negotiating NIL deals directly could raise concerns about potential conflicts of interest or undue influence over athletes.
  • Resource Allocation: Institutions may face financial and administrative strain to comply with the new regulations.
  • Ethical Questions: Ongoing debates regarding the fairness of universities controlling NIL negotiations, especially for high-value deals, feel inevitable.
  • Recruitment Disparities: The bill could widen the gap between schools with differing financial capabilities, affecting recruitment strategies.

What This Means for You
If you’re a student-athlete, parent, coach, or school administrator, Ohio House Bill 660 could significantly impact how you approach NIL agreements. Navigating these changes effectively will require understanding the bill’s provisions and preparing for the financial and legal implications.

Let’s Navigate This Together
The complexities of NIL laws call for expert guidance. Whether you’re looking to maximize opportunities or ensure compliance, we are here to help. Contact Member Scott Norcross at sanorcross@bmdllc.com or Partner Paige Rabatin at pmrabatin@bmdllc.com to discuss how House Bill 660 could affect you or your organization and how we can work together to make the most of these new possibilities.

College AthleticsStudent-Athletes
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