Montana colleges could directly pay student-athletes under NIL bills
The University of Montana campus is pictured. (Jordan Hansen / Daily Montanan)
Two bills regulating student-athlete compensation at colleges across the state are headed to the governor's desk after passage through the Montana Legislature on Friday.
Senate Bill 482 requires written contracts for student-athlete usage of their name, image and likeness, while Senate Bill 271 removes an existing prohibition on schools directly paying student-athletes.
Sen. Ellie Boldman, D-Missoula introduced both bills, which she said will allow Montana's largest schools to be competitive in the Big Sky Conference. She also brought the state's original NIL legislation in 2021.
'If folks do care about the nuance, it actually puts more side rails on NIL for student athletes,' Boldman said in a committee hearing on both bills on April 7. 'The university themselves will have a little bit more control over making sure that student athletes understand their contractual agreements and make sure that they're not taken advantage of in the private sector.'
On SB 482, Boldman said, 'We just want to make sure if you're going to offer our student athletes a deal, it's got to be in writing.'
The new law rolls back previous laws that specifically prohibited Montana universities and colleges from paying their student-athletes. As an example, some colleges have begun to place student-athletes names on the back of jerseys sold to fans — the players then get a cut of that revenue.
Institutions are already allowed to act as agents or add name, image and likeness agreements to scholarship agreements.
The legislation does not change outside endorsement deals, though does formalize those agreements in writing, meaning a verbal agreement does not constitute a legally binding contract.
'This is about fairness, opportunity, and keeping Montana competitive,' Boldman said in a press release.
Montana has three schools that compete in the NCAA: The University of Montana, Montana State University and Montana State University-Billings.
Similar discussions have occurred at the federal level, and a federal court is expected to soon rule on a $2.8 billion antitrust lawsuit against the NCAA which, if found against the athletics organizations, could allow student-athletes to have revenue sharing agreements and provide backpay.
Boldman said her bills will allow Montana student athletes to take part in the settlement.
'We want our student athletes to be able to opt into that settlement, which will then entitle them to some additional compensation,' Boldman said.
Representatives from Montana and Montana State both testified in support of the bill during its hearing.
'We have the compliance and support staff here to navigate this constantly changing landscape, and this change gives us the certainty we need to act within the bounds of state law,' UM spokesperson Dave Kuntz said during the hearing for SB 271. 'With other legislative bodies around the region making similar changes, this bill will help ensure campus policies remain in line with our regional competitors as well.'
Beyond the NCAA schools in the state, the six Montana schools whose athletic teams belong to the Frontier Conference in the NAIA could also be impacted.
In 2020, the NAIA passed name, image and likeness rules for its member schools. It allowed athletes to be paid, but, Montana Tech men's basketball head coach Adam Hiatt said, 'the NAIA legislation did not intend to allow schools to pay student-athletes directly for NIL purposes.'
He added some Tech student-athletes have been able to take advantage of agreements for their name, image and likeness. He said there's no plan to pay players through the school until the NAIA changes its policies.
Montana Tech athletic director Matt Stepan said the university is reviewing the legislation to see how it will impact them.
'While the new legislation may not have an immediate or direct effect on our recruiting efforts, changes of this nature often create ripple effects throughout college athletics,' Stepan said. 'We'll be monitoring the situation closely to determine any indirect implications for NAIA institutions and student-athletes.'
The Frontier Conference includes Treasure State schools Montana Tech, University of Montana Western, Carroll College, University of Providence, Montana State University-Northern and Rocky Mountain College.
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