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New Louisiana Executive Order Allows Direct NIL Payments from Schools

Originally posted on NIL on SI | By Maddy Hudak | Last updated May 15, 2025 2:00 PM ET

With no federal legislation on NIL compensation for college athletes in place, nor final approval of the House settlement, state governors are stepping in to take action.

It’s been a bizarre offseason of state legislature involvement in college sports, with many looking to eliminate state income tax on name, image, and likeness payments to recruit top talent in college football and men’s basketball.

Another race has begun to allow colleges to directly pay their student-athletes, a practice that has already been implemented in several states, according to Louisiana Governor Jeff Landry.

With an executive order he signed on Tuesday, Landry is leveling the playing field for Louisiana colleges.

Louisiana Colleges Can Now Pay Student Athletes Directly for NIL

The executive order will allow schools in Louisiana to directly pay star athletes for the use of their name, image, and likeness.

It will protect institutions from any adverse actions by the NCAA, athletic conferences, or other governing bodies should they facilitate direct NIL compensation to athletes.

Importantly, it prohibits the use of state-allocated funds and will remain in effect until either sufficient federal legislation is enacted on NIL or the effective date of the House settlement.

Schools in Louisiana can now directly pay college athletes without fear of NCAA penalties, after the governor issued an executive order yesterday.

It remains in effect until there is federal legislation on college athlete NIL compensation or the House settlement is approved. pic.twitter.com/ofS75qbjnt
— Mit Winter (@WinterSportsLaw) May 14, 2025

“Louisiana is proud to be home to student-athletes who consistently compete and win at the highest levels of college athletics,” Landry said. “As national policies and developments continue to reshape the landscape of college sports, this executive order is about fairness—for our Louisiana students, our schools, and our athletes.”

The aim of the order is to retain an in-state competitive advantage, or rather, not fall at a disadvantage, in attracting student athletes.

LSU Tigers athletic director Scott Woodward spoke about the executive order and the importance of what it allows.

“We’re grateful to Governor Landry for his leadership and proactive approach with this executive order,” Woodward said. “This will afford all higher education institutions in the state of Louisiana the ability to remain nimble and at the forefront of the ever-changing college athletics landscape.”

The order really only stands to protect the state schools until something more concrete is enacted, and that’s expected with the impending settlement that will bring revenue sharing to college athletes through direct payments.

Most schools aren’t waiting for that approval date and have been operating, frankly, as if approval is imminent.

That approach is risky without state law ensuring that these actions will not result in negative consequences from the NCAA or other parties.

While it shows the clear need for federal guidance, it clears the path for schools in the state to go ahead and directly pay athletes immediately without fear.

This article first appeared on NIL on SI and was syndicated with permission.

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