New Virginia Law Allows Schools to Negotiate NIL Deals Directly with Athletes

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Virginia governor Glenn Youngkin signed House Bill 1505 into law on Thursday, allowing state colleges and universities to compensate their own student-athletes through NIL deals without restriction from the NCAA.

As reported by Sports Illustrated, the law will take effect on July 1 and will be the first in any state in the U.S. to prohibit the NCAA from punishing a school for offering direct compensation to its athletes through NIL. The law states that student-athletes are not considered employees of the school and the schools are still prohibited from paying athletes directly for their performance, but schools can allocate university, athletic department or other school funds toward athletes for the purposes of marketing campaigns, according to Matt Newton, reporting for SI..

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