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Virginia Governor Signs Law Allowing College Athlete Compensation

Wachovia Center operations manager Jim McDonald, left, and carpenter foreman Tim Allen remove the protective film covering the NCAA logo at mid-court on the center's basketball court, Wednesday

Virginia Governor Glenn Youngkin signed a groundbreaking measure into law that permits state colleges and universities to directly pay their athletes through name, image, and likeness (NIL) compensation deals. This law, set to take effect on July 1, is believed to be the first of its kind in the United States.

The NCAA recently eased some of its NIL restrictions, but reiterated its stance against pay-for-play and schools compensating student-athletes for the use of their NIL. Michigan athletic director Warde Manuel suggested that other states may follow Virginia's lead, with pending legislation in states like Oklahoma, Nebraska, and Louisiana.

The NCAA's decision in July 2021 to allow college athletes to profit from deals with brands or businesses has led to the introduction of state laws preventing the NCAA from limiting NIL revenue. University of Virginia athletic director Carla Williams expressed hope that the Virginia law could push towards a national solution for college athletics.

The NCAA is progressing on legislation that would enable its member schools to play a more active role in securing sponsorship and endorsement deals for their athletes. The Virginia law also paves the way for donors to collaborate directly with schools on compensating athletes.

State lawmakers have been instrumental in driving changes to NCAA rules around player compensation. In 2019, California passed a bill allowing college athletes to monetize their fame, prompting other states to follow suit. The NCAA has faced legal challenges to its amateurism model, leading to recent developments such as halting investigations into third-party NIL deals and discussions around student-athlete employment.

As the landscape of college athletics continues to evolve, the Virginia law represents a significant step towards empowering student-athletes and reshaping the traditional framework of collegiate sports.

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