Oklahoma lawmakers push NIL update as House v. NCAA nears ruling

As the final hearing in the House v. NCAA case plays out Monday, Oklahoma lawmakers are moving forward with legislation aimed at updating the state’s Name, Image and Likeness (NIL) laws to prepare for a potential shift in college athletics.

The question before the court: Can Division I schools directly pay athletes for their name, image and likeness?

The University of Oklahoma and Oklahoma State University have both indicated they are prepared to do so — pending the outcome of today’s ruling.

House Bill 490, authored by Rep. Mark Lawson (R-Sapulpa), is designed to keep Oklahoma’s colleges competitive if direct NIL payments are allowed.

“490 is an update to NIL language. We’re expecting a court ruling on the House vs NCAA today. What this does is put in additional structures with the NIL for the state of Oklahoma as well as revenue sharing,” Lawson said.

The bill clarifies that student-athletes cannot be considered employees of their university based on NIL compensation and would give colleges the authority to void NIL contracts if student-athletes accept payments that violate the law.

Oklahoma has worked in recent years to stay ahead of the evolving NIL landscape. In January, Gov. Kevin Stitt issued an executive order allowing colleges and third parties to directly pay players for their NIL, while also barring the NCAA from investigating or penalizing Oklahoma schools for doing so under the directive.

That executive order will automatically expire once a final settlement is reached in the House v. NCAA case. If approved, the settlement could allow colleges to distribute up to $20.5 million annually to players.

Fourteen plaintiffs, including college professors and former athletes, testified Monday in objection to the proposed settlement. The hearing is expected to conclude before 7 p.m.