Tennessee Senate approves bill changing state law for student athlete compensation

The Tennessee Senate approved a bill that would put state law on college athletics name, image and likeness rules in line with a lawsuit brought against the National Collegiate Athletic Association by the Tennessee Attorney General.

The bill would change Tennessee law to allow prospective students to hire an agent and would eliminate fair market value limitations on athlete pay.

“As the collegiate athletics landscape changes, our institutions need to remain nimble and competitive,” said Sen. John Stevens, R-Huntingdon. “This also would support our attorney general’s assertion that certain NCAA actions harm our student-athletes.”

Senate Bill 709 passed 32-0 and the amended bill will head to the House Education Administration Committee on Wednesday.

The bill comes after Tennessee Attorney General Jonathan Skrmetti’s office received a preliminary injunction against the NCAA and its NIL rules in February on claims that the NCAA rules limitations violate federal antitrust law by limiting athlete compensation.

U.S. District Judge Clifton L. Corker also restricted the NCAA from enforcing its rules of restitution related to NIL activities until a final ruling.

“We will litigate this case to the fullest extent necessary to ensure the NCAA’s monopoly cannot continue to harm Tennessee student-athletes,” Skmetti said after the federal court ruling. “The NCAA is not above the law, and the law is on our side.”