When Jack โGooseโ Givens helped lead the University of Kentucky menโs basketball team to a 30-win season and the 1978 NCAA tournament title, all he and his teammates could count on for their efforts was their athletic scholarships and modest stipends of $15 a month from the school.
โThey called it laundry money,โ Givens recalls. โThat is what they expected us to live on.โ
For years, student-athletes have criticized the collegiate athletic system that allowed the NCAA, universities, broadcast networks, and others to enjoy millions of dollars in profits off of their labors. The system had to operate that way, argued the NCAA, because compensating players would mean they would no longer be amateurs, and that could destroy the college game.
But recent court decisions have broken the NCAAโs grip on how collegiate student-athletes are compensated. Players who once couldnโt even control the use of their own name, image or likeness now have the opportunity to benefit from their personal brands. That change, which has unfolded since July 1 through a series of state-level laws and executive orders, is creating what some are calling a โWild Westโ in college sports as businesses and boosters rush to sign endorsement deals big and small with college athletes.
Givens says heโs โ100 percentโ for the change.
โI think itโs going to be awesome opportunities for players,โ he says. โItโs needed, I think itโs well deserved, and way past time.โ
Student-Athletes Already Netting Hundreds of Deals
College athletes in Kentucky are currently operating under broad name, image, and likeness (also called NIL) rules put in place through an executive order issued by Gov. Andy Beshear in late June. His order allows student-athletes to sign endorsement or sponsorship deals and to use agents to assist with their NIL contracts. The athlete can receive money or free products as compensation for their endorsement or participation at current market rates.
The playersโ schools can enact reasonable limits on how much time their student-athletes can devote to NIL work and what products or services they endorse. For example, they are prohibited from promoting alcohol or tobacco products, weapons, gambling, or sexually-oriented activities. Beshearโs order also directs schools to give their student-athletes training on financial literacy as well as personal brand, time, and money management.
Administrators quickly established policies at UK and the University of Louisville to give their athletes further guidance.
Rachel Baker, executive associate athletics director at UK, says their players have signed more than 500 NIL deals. They range from star football and basketball players (men and women) down to athletes in non-revenue generating sports, including track and field hurdler Masai Russell and air rifle shooter Mary Tucker, who won a silver medal at this yearโs Olympics.
โI havenโt disapproved one deal,โ says Baker. โWhat we are looking for is whether or not what they are doing actually complies with the executive orderโฆ What is prohibited, though, is them actually getting something and not having to do anything for that.โ
Itโs not just individual athletes who can benefit from NIL deals. U of L Associate Athletic Director Matthew Banker says it can be an entire team, like the schoolโs number-one ranked womenโs volleyball squad, or a specific position group, like Louisville footballโs offensive line.
โFor many, their visibility is going to be at its highest when theyโre in college,โ says Banker. โMany arenโt going to go professionalโฆ so to maximize that while theyโre in college is something that we can do in a cohesive fashion.โ
Student-athletes must disclose their NIL deals to their schools or risk a loss of eligibility. Both U of L and UK have given their players smartphone apps they can use to report their proposed deals by answering a few basic questions. Banker says that kind of convenience is important because deals can come through social media so quickly.
As for helping student-athletes with financial and legal issues, Baker and Banker say thatโs nothing new for UK or U of L.
โWeโre stewards to young people 18-to-21, 22-year-olds who are new to this business environment,โ says Banker. โTheyโre dealing with contracts, theyโre dealing with negotiations, trying to understand their own value, their own rights.โ
โWeโve been in the business for many years of helping student-athletes create and build their own personal brand,โ says Baker. โNow theyโre at an opportunity where they can actually take advantage of that and capitalize on it.โ
Potential State Legislation to Regulate NIL Deals
Still, that โWild Westโ concern still looms large, given how quickly NIL opportunities emerged, the amount of money that could be at play, and the fact that student-athletes and their families likely have little experience navigating these kinds of deals. There are also no national standards yet.
Baker says the NCAA, the nonprofit organization that governs collegiate athletics and student-athletes, has directed member schools to follow any NIL laws set by their home states. The association also mandates that NIL deals cannot create a pay-for-play scenario or be used as inducement to recruit prospects to a school.
Congress could also intervene to enact national policies on NIL, but that hasnโt happened either. Without some kind of consistent national standards, some fear the current patchwork of state or even local laws could give some schools advantages over others.
โI actually think the NCAA is the entity that is best suited to do this,โ says state Senate Minority Floor Leader Morgan McGarvey (D-Louisville). โI have no confidence that they will do it even though they should.โ
Seeing where NIL was heading in the courts, McGarvey says heโs worked for several years with fellow Senators Max Wise (R-Campbellsville) and Whitney Westerfield (R-Crofton) to develop potential NIL legislation for the General Assembly. He says 28 states already have NIL legislation in place while a couple of others, including Kentucky, have executive orders on the issue. McGarvey says he wants Kentuckyโs law to set a standard for the rest of the nation for follow. He also says schools should be able to put reasonable restrictions on the deals and that there must be enforcement measures if policies arenโt followed.
โWe donโt want to over-regulate this as a part-time legislature,โ says McGarvey. โBut at the same time, we want to make sure that the kids are protected.โ
Representatives from U of L and UK appeared at an Interim Joint Committee on Education earlier this month to offer their outline for potential legislation. The schools want to ensure student-athletes can make money from NIL deals, while the institutions are allowed to put reasonable limits on NIL, protect their own brands and intellectual property, and get immunity from any potential lawsuits arising from an NIL deal gone bad.
โItโs a good framework,โ says state Rep. Adam Bowling (R-Middlesboro). โWeโre just going to have to tighten up the language around whatโs reasonable, and then also on the immunity. We need to give the university the protections they need.โ
Collegiate sports marketing expert Jim Host says state legislative action on NIL could be unnecessary. He says the individual schools are already doing a good job managing the deals now. Plus, he expects the NCAA to promulgate national policies on NIL in the organizationโs new constitution. That could put schools in the position of having to follow state laws and NCAA rules that could be at odds with each other.
โI really applaud the legislature for taking this on and doing the work theyโre doing on it,โ says Host. โI think to establish the guideline for all universities in the state is the absolute right thing to do, and then see how that matches up with what the NCAA does, if they do anything.โ
Bowling says he understands the NCAA could change the NIL playing field. But until that happens, he contends itโs important for the state to put rules in place now to protect schools and student-athletes.
โFor the last 50 years weโve been at the whim of the NCAA,โ says Bowling. โIf we donโt pass legislation, then weโre still at the whim of the NCAA.โ
Gov. Beshearโs executive order applies to the major state universities as well as the regional universities and smaller schools, and any future legislation would likely do the same. Travis Powell, vice president and general counsel for the Kentucky Council on Postsecondary Education, says NIL deals provide more opportunities for students to achieve their dreams.
โWhen you think about some of the low-income and underrepresented minority students that are participating in athletics, itโs a huge way for them to be more successful on our campuses,โ says Powell, who played on two NCAA Division II basketball championship teams at Kentucky Wesleyan. โThis is just going to enhance that even more.โ
While NIL deals offer a lot of promise for players, there are many unknowns. For example, how would deals apply to high school athletes? And could the deals create rifts among team members when some players get more or better offers than others?
Jack Givens says players at the college level understand the nature of team sports and that better athletes generally get more attention, whether thatโs in playing time, in the limelight, or now with NIL deals.
โThatโs supply and demand, thatโs the market,โ says Givens. โSome players are going to make more than others, but I think every guy in practice knows who the superstars are.โ




