News Summary
Louisiana Governor Jeff Landry has signed an executive order that allows colleges and universities in the state to directly compensate college athletes. The order aims to protect Louisiana institutions from potential NCAA penalties while enabling facilitation of Name, Image, and Likeness (NIL) deals. The legislation does not permit the use of state funds for athlete payments but encourages NIL opportunities, particularly as discussions about federal legislation regarding athlete compensation continue. This move has garnered support from athletic directors, aiming to maintain competitiveness in college sports.
Louisiana – In a significant move for college athletics, Governor Jeff Landry has signed an executive order permitting colleges and universities in Louisiana to directly compensate college athletes. This order is designed to shield Louisiana institutions from potential penalties by the National Collegiate Athletic Association (NCAA) regarding athlete compensation and Name, Image, and Likeness (NIL) arrangements.
The executive order specifically prohibits the use of state funds to pay athletes but allows for the facilitation of NIL deals. Athletic directors from major institutions like Louisiana State University (LSU) and Southern University have expressed their support for the governor’s initiative, emphasizing that it is vital for maintaining competitiveness within the realm of college sports.
Under current NCAA regulations, direct payments to college athletes remain prohibited. However, athletes are permitted to earn income through NIL endorsements, which have rapidly evolved into a billion-dollar marketplace, providing significant financial opportunities, especially at prominent sports schools. LSU athletes alone have collectively secured over 1,500 NIL deals, amounting to more than $18 million in earnings.
The executive order comes at a time when discussions around federal legislation addressing NIL deals are ongoing. If such legislation is enacted, or if a lawsuit against the NCAA regarding unpaid compensation is resolved, the significance of the governor’s order could diminish.
In conjunction with this new executive order, the Louisiana Legislature is evaluating two proposed bills aimed at exempting NIL income from state income taxes. House Bill 166 proposes a complete exemption of NIL income from state taxes, while House Bill 168 seeks to exempt the first $12,500 of NIL income. These measures could further enhance the financial landscape for college athletes operating in the state.
The growing complexity of NIL deals has prompted calls for increased transparency in the field. A proposed resolution calls for a task force to study the transparency issues surrounding NIL agreements, highlighting the need for more clarity as these arrangements become more common in college athletics.
While larger schools like LSU are actively leveraging NIL opportunities through their collective, Bayou Traditions, smaller institutions, including McNeese State University, are also beginning to establish their own NIL programs to support their athletes. However, there are concerns that the rise of NIL could negatively impact student-athlete loyalty towards smaller schools, complicating the recruitment process.
Ongoing NCAA rulings have paved the way for revenue-sharing models that could provide direct compensation to student-athletes, with proposed payment caps of $20.5 million per school each year as part of a potential settlement agreement. With public sentiment divided, there are notable discussions about the implications of NIL on the essence of collegiate athletics.
Additionally, there has been commentary regarding tax policies that could offer Louisiana an advantage in attracting athletes compared to states that do not have an income tax. However, some experts caution that exempting NIL income from state taxes could disrupt established fair tax policies, raising concerns about equity among states.
Furthermore, LSU’s head coach has made personal contributions to bolster NIL efforts, signifying a commitment to supporting student-athletes in navigating their financial opportunities through NIL. A new documentary series titled “The Money Game,” available on Prime Video, further explores the impacts of NIL activities on the lives of LSU athletes, adding to the ongoing conversations about financial eligibility and student-athlete welfare.
As momentum builds around NIL opportunities, Louisiana’s executive order and the legislative actions considered may significantly alter the college athletics landscape in the state and beyond.
Deeper Dive: News & Info About This Topic
- WBRZ: A Look at How NIL Deals are Transforming Louisiana College Athletics
- NOLA: Louisiana NIL Deal Student Athlete Income State Tax Exemption Legislation
- 225 Baton Rouge: New Prime Video Docuseries ‘Money Game’
- Wikipedia: Name, Image and Likeness
- NOLA: Elijah Haven NIL Deal with Matt Bowers
- Encyclopedia Britannica: NCAA
Author: STAFF HERE NEWORLEANS WRITER
NEW ORLEANS STAFF WRITER The NEW ORLEANS STAFF WRITER represents the experienced team at HERENewOrleans.com, your go-to source for actionable local news and information in New Orleans, Orleans Parish, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as French Quarter Festival, New Orleans Jazz & Heritage Festival, and Essence Music Festival. Our coverage extends to key organizations like the New Orleans Chamber of Commerce and Greater New Orleans, Inc., plus leading businesses in energy, healthcare, and education that power the local economy such as Entergy, Ochsner Health, and Tulane University. As part of the broader HERE network, including HEREShreveport.com, we provide comprehensive, credible insights into Louisiana's dynamic landscape.
