HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 99 Intercollegiate Athlete Compensation and Rights
SPONSOR(S): Postsecondary Education & Workforce Subcommittee, LaMarca
TIED BILLS: None. IDEN./SIM. BILLS: SB 200
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Postsecondary Education & Workforce 18 Y, 0 N, As CS Wolff Kiner
Subcommittee
2) Education & Employment Committee Wolff Hassell
SUMMARY ANALYSIS
Florida was an early leader in allowing intercollegiate student athletes to earn compensation for the use of their
name, image & likeness (NIL). Since that time, over two dozen other states have followed Florida’s lead and
enacted NIL laws of their own. In response to these actions, the National Collegiate Athletic Association
(NCAA) adopted an interim policy allowing intercollegiate athletes to earn NIL compensation without
jeopardizing their amateur status or athletic eligibility.
While Florida’s NIL law has not been updated since its enactment, other states have had the opportunity to
learn and benefit from Florida’s early action. For example, Florida’s NIL law prohibits institutions from causing
NIL compensation to be directed to an intercollegiate athlete. As a result, athletes may not be aware of NIL
opportunities that exist, or if they are aware, are unable to receive information or other support from their
institutions beyond the statutorily required financial literacy and life skills workshop.
Consequently, several states have since revised their laws by removing this prohibition. In addition, the NCAA
issued new guidance in October 2022 clarifying that institutions may, in fact, have limited involvement in the
NIL process, such as: providing information to student athletes about NIL opportunities of which the institution
has become aware; arranging space for a NIL entity and student athlete to meet on campus or in the
institution’s facilities; or through other specified actions. As a result of these other state actions and newly-
issued NCAA guidance, Florida’s NIL law is currently more restrictive than the NCAA.
To assist student athletes in maximizing their NIL opportunities, the bill:
Removes the prohibition on institutions causing compensation to be directed to student athletes .
Removes the requirement that NIL compensation come from a third party unaffiliated with the
institution.
These proposed changes allow for limited institutional and booster organization involvement and are consistent
with the NCAA’s Interim Policy and associated guidance, as well as NIL laws in several other states. The bill
retains the prohibition on direct compensation from the institution to current or prospective student athletes. In
addition, long-standing NCAA policies prohibiting ‘pay-for-play’ and illegal recruiting inducements remain in
effect.
The bill provides protections to postsecondary educational institutions for the use of their trademarks and logos
and expands the required financial literacy and life skills workshop to include an entrepreneurship component,
require the workshop be provided annually, and require it be provided to transfer student athletes.
The bill has an indeterminate positive fiscal impact on student athletes at Florida’s postsecondary institutions .
The bill takes effect upon becoming a law.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Present Situation
Background
National Collegiate Athletic Association
The National Collegiate Athletic Association (NCAA) regulates intercollegiate athletic competitions in
various sports across three divisions (Division I, Division II, and Division III). 1 As the governing body for
the majority of intercollegiate athletic programs, the NCAA provides that its basic purpose is to
“maintain intercollegiate athletics as an integral part of the educational program and the athlete as an
integral part of the student body and, by so doing, retain a clear line of demarcation between
intercollegiate athletics and professional sports.” 2
The NCAA issues and enforces rules governing athletic competitions among its member schools.
The rules are developed by a member-led governance system in which members introduce and vote on
proposed rules. The rules for student-athletes vary by division.
Student-athletes are allowed to receive scholarships, or "grants-in-aid," which may cover tuition and
fees, room and board, required course-related books, food, and cash stipends to help defray the actual
cost of attending school.
The NCAA and member colleges and universities award nearly $3.6 billion in athletic scholarships
every year to more than 180,000 student-athletes.3 According to the NCAA, they also provide almost
$100 million each year to support student-athletes’ academic pursuits and assist them with the basic
needs of college life, such as a computer, clothing or emergency travel expenses. 4
Florida Intercollegiate Athletic Programs
In Florida, 13 schools participate in NCAA Division I athletics, of which seven compete in the Football
Bowl Subdivision, three compete in the Football Championship Subdivision, and three do not field
football teams. There are 14 NCAA Division II athletic programs located in the state, and no NCAA
Division III athletic programs. Additionally, Florida is home to 26 institutions participating in the National
Junior College Athletic Association (NJCAA), nine institutions participating in the National Association
of Intercollegiate Athletics (NAIA), and six institutions participating in the National Christian College
Athletic Association (NCCAA).
Intercollegiate Athletics Revenue and Expenses
NCAA Revenues and Expenses
College athletics, particularly football and basketball, is big business. The games associated with the
College Football Playoff paid out a combined $549 million to athletic conferences and schools in 2018-
2019.5 ESPN will reportedly pay approximately $7.3 billion to televise the games associated with the
1 Division I is further subdivided in to the Football Bowl Subdivision (FBS), Football Championship Subdivision (FCS), and Division
I Subdivision.
2 NCAA Constitution Art. I, s. A, available at https://web3.ncaa.org/lsdbi/reports/getReport/90008.
3 NCAA, Scholarships, https://www.ncaa.org/sports/2014/10/6/scholarships.aspx (last visited Dec. 28, 2022).
4 See NCAA, 2023 Division I Revenue Distribution Plan, available at
https://ncaaorg.s3.amazonaws.com/ncaa/finance/d1/2023D1Fin_RevenueDistributionPlan.pdf.
5 Brent Schrotenboer, College Football Playoff Business is Booming at Halfway Point, but Expansion Looms , USA Today, Jan. 9,
2020, available at https://www.usatoday.com/story/sports/ncaaf/2020/01/09/college-football-playoff-financial-success-expansion-
future/2838495001/ (last visited Jan. 9, 2023).
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College Football Playoff over the twelve-year period.6 The NCAA’s current eight-year television contract
with CBS and Turner Sports for the NCAA’s men’s March Madness basketball tournament is reportedly
worth $8.8 billion. For the year ending August 31, 2021, the NCAA reported revenue of $1.15 billion
and expenses of $1.03 billion.7 The vast majority of revenues were received from television and
marketing rights fees ($915 million) while $613 million was distributed to Division I member institutions. 8
Division I Revenue and Expenses
In 2020-2021, 350 Division I schools reported a total revenue of $13.3 billion through the NCAA
financial reporting system.9 The majority of this revenue was received from institution and government
support (37 percent), media rights (26 percent), and donor contributions and endowments (17
percent).10 However, these same institutions had $13.7 billion in expenses, with the largest expenses
being coach compensation (22 percent), student athletics aid (21 percent), administrative
compensation (18 percent) and facilities (18 percent). 11 Of the 350 institutions that reported financial
data to the NCAA in 2021, only nine FBS and no FCS institutions reported revenue that exceeded
expenses.12
Name, Image, and Likeness
NCAA Interim Policy
Prior to July 1, 2021, the NCAA prohibited intercollegiate athletes from earning compensation for the
use of their name, image, and likeness. In June 2021, the United States Supreme Court (Supreme
Court) upheld a ruling against the NCAA striking down long-standing restrictions on permissible
education-related benefits for student athletes, such as rules that limit scholarships for graduate or
vocational school, payments for academic tutoring, or paid posteligibility internships. 13
In light of the Supreme Court ruling and changes in public sentiment regarding student athlete
compensation, including a number of state laws authorizing student-athlete name, image, and likeness
opportunities, the NCAA adopted an interim policy governing name, image and likeness opportunities
for member institutions.14 The interim policy provides the following regarding college athletes, recruits,
their families and member schools:
Individuals can engage in NIL activities that are consistent with the law of the state where the
school is located. Colleges and universities may be a resource for state law questions.
College athletes who attend a school in a state without a NIL law can engage in this type of
activity without violating NCAA rules related to name, image and likeness.
Individuals can use a professional services provider for NIL activities.
Student-athletes should report NIL activities consistent with state law or school and conference
requirements to their school.15
6 Id.
7 NCAA, Consolidated Financial Statements August 31, 2021 and 2020 , p.6, available at
https://ncaaorg.s3.amazonaws.com/ncaa/finance/2020-21NCAAFIN_FinancialStatement.pdf.
8 Id.
9 NCAA, Trends in Division I Athletics Financing, p. 13, available at
https://ncaaorg.s3.amazonaws.com/research/Finances/2022RES_DI-RevExp Report_FINA L.pdf.
10 Id. at 14.
11 Id. at 21-22.
12 Id. at 8-9. At least one Division I Subdivision school reported revenue greater than expenses, but the NCAA report does not provide
a specific count. Id. at 10.
13 See NCAA v. Alston, 141 S.Ct. 2141 (2021).
14 NCAA, NCAA adopts interim name, image and likeness policy, https://www.ncaa.org/news/2021/6/30/ncaa-adopts-interim-name-
image-and-likeness-policy.aspx (last visited Dec. 29, 2022).
15 Id.
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In October 2022, the NCAA issued additional guidance seeking to clarify its interim NIL policy.16 The
guidance addressed three main areas of confusion related to the interim policy: 17
Schools generally can and should provide education to current student-athletes on topics such
as financial literacy, taxes, social media practices and entrepreneurship. Schools also can
provide NIL education to collectives, boosters and prospects. 18
Schools can inform student-athletes about potential NIL opportunities and can work with a NIL
service provider to administer a "marketplace" that matches student-athletes with those
opportunities, schools cannot engage in negotiations on behalf of a NIL entity or a student-
athlete to secure specific NIL opportunities.
School personnel (including coaches) can assist a NIL entity with fundraising through
appearances or by providing autographed memorabilia but cannot donate cash directly to those
entities. School staff members also cannot be employed by or have an ownership stake in a NIL
entity.
To aid institutions in understanding the new guidance, the NCAA’s guidance document also included
several other examples of activities that are permissible and activities that are impermissible. 19 The
NCAA stressed that this additional guidance was a clarification of existing policy, but acknowledged
that the guidance may render prior acts by institutions violations of the interim policy. However, the
NCAA directed its enforcement staff to only pursue the most egregious offenses that were “clear
violations” of the interim policy.20
Florida Name, Image, and Likeness Law
Recognizing that intercollegiate athletes have a property right in their name, image, and likeness and
generate significant revenue for their institutions, in 2020, Florida adopted the ‘Intercollegiate Athlete
Bill of Rights’ (Florida NIL Law).
Effective July 1, 2021, Florida’s NIL Law permits intercollegiate athletes at postsecondary educational
institutions to earn compensation for the use of their name, image, or likeness. 21 Such athletes may do
so by, among other things, endorsing products and/or services, making public appearances, signing
autographs, participating in sports camps, or even starting their own businesses. The compensation
provided must be commensurate with the market value of the authorized use of the athlete’s name,
image, or likeness.22 To preserve the integrity, quality, character, and amateur nature of intercollegiate
athletics and to maintain a clear separation between amateur intercollegiate athletics and professional
sports, state law prohibits such compensation from being provided in exchange for athletic performance
or attendance at a particular institution.23 Additionally, the duration of an intercollegiate athlete’s name,
image, or likeness contract may not extend beyond his or her participation in an athletic program at a
postsecondary educational institution.24 An intercollegiate athlete must disclose the contract to her or
his postsecondary educational institution.25
After Florida, several other states enacted name, image, and likeness laws and, as of January 2023, 29
states have adopted NIL laws and five states have proposed NIL laws. 26
16 NCAA, DI board approves clarifications for interim NIL policy, https://www.ncaa.org/news/2022/10/26/media-center-d i-board-
approves-clarifications-for-interim-nil-policy.aspx (last visited Dec. 29, 2022).
17 Id.
18 The board also noted that — when permitted by applicable state laws — schools can and should require student-athletes to report
NIL activities to the athletics department. Id.
19 NCAA, Institutional Involvement in a Student-Athlete’s Name, Image and Likeness Activities, available at
https://ncaaorg.s3.amazonaws.com/ncaa/NIL/D1NIL_InstitutionalInvo lvementNILActiv ities.pdf.
20 Id.
21 Section 1006.74, F.S.
22 Id.
23 Id.
24 Id.
25 Id.
26 See Justia, Laws for College Athlete Name, Image, and Likeness Rights: 50 -State Survey, https://www.justia.com/sports -
law/college-athlete-name-image-and-likeness-rights-50-state-survey/ (last visited Dec. 29, 2022).
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Prohibition on Directing Compensation to Student Athletes
Florida and only six other states prohibit a postsecondary educational institution, as well as its booster
organization, from causing compensation to be directed to a current intercollegiate athlete for the use of
his or her name, image, or likeness.27
However, the prohibition against causing compensation to be directed to a current intercollegiate
athlete has resulted in confusion as to the extent to which a postsecondary educational institution, any
of its staff, or its booster organization, may be involved in the NIL process at all. For example, this
portion of Florida’s NIL law could be interpreted to prohibit athletic department staff from merely
answering questions from a current student athlete regarding the NIL process and/or setting up an
introduction between the current student athlete and a third-party. As a result of the confusion,
institutions and coaches have shied away from discussions surrounding NIL altogether.
The confusion exists in some of the other states that have NIL laws similar to Florida’s. However, in
2022, Louisiana, Mississippi, Missouri, and Tennessee amended their NIL laws to address the
confusion and clarify that institutions are not prohibited from being involved in the NIL process
altogether. Alabama repealed its NIL law entirely. Several other states, such as Arkansas, Georgia,
North Carolina, and Texas have codified NIL laws, but do not have the prohibition. South Carolina’s NIL
law has the prohibition, but its NIL law has been suspended for the 2022-2023 academic year.28
Because the October 2022 guidance from the NCAA clarifies that some institutional involvement in NIL
is permissible, and in some instances, encouraged, Florida’s prohibition on ‘causing compensation to
be directed’ has been interpreted as being more restrictive that what is allowed by the NCAA Interim
Policy.29
Florida Public Postsecondary Educational Institution Trademarks
The registration and protection of trademarks in Florida