New bill aims to cut NCAA out of NIL enforcement in one state

The fallout of the House v. NCAA settlement continues, as a new bill could shut down NIL enforcement measures in the state of Michigan.

Judge Claudia Wilken ushered in a new era in the NIL space on June 6. The NCAA will pay out $2.8 billion in damages former athletes. And a new revenue sharing mode, beginning July 1, will allow participating schools to share up to $20.5 million to athletes this year with that figure increasing incrementally on an annual basis.

There is also a approval process – created by the College Sports Commission and ran by Deloitte – for NIL deals worth more than $600. The impending institution of the "NIL Go" clearinghouse led to House Bill 4643, which aims to prevent colleges and athletic departments from blocking student-athletes from profiting off NIL.

State Rep. Joe Tate, a former Michigan State offensive lineman from 2002-03, introduced the bill, stating that "no entity" has the right to prohibit athletes from profiting off NIL.

If passed, Michigan schools would be banned from reporting deals to the clearinghouse and complying with any NIL investigations.

“House Bill 4643 really specifies that no entity has the right to be able to prohibit a student-athlete from executing a contract involving their name, image and likeness,” Tate said, according to The Detroit News.

Michigan's bill comes on the heels of other hold ups in the aftermath of the House Settlement. Multiple lawsuits have already been filed by groups of former athletes, citing Title IX violations, regarding the $2.8 billion in damages to former players.

As it stands, the revenue sharing model and clearinghouse process is expected to begin as scheduled on July 1 while the back payments to former athletes is expected to be paused due to those lawsuits.