In late February 2025, a Utah House committee passed legislation regarding how Utah universities pay student athletes. The revised version of House Bill 449 allows universities to directly pay college athletes.
HB 449 passed without debate and now heads to the Senate for consideration. The bill states that a higher education institution may use funds to directly compensate student athletes for the use of their name, image or likeness.
This bill follows previous state legislation to keep student athletes’ name, image and likeness contracts private. Five Utah universities challenged a proposition to make such contracts public. Third District Judge Amber Mettler sided with the universities, upholding the Government Records Access and Management Act. This 2024 law labeled current NIL contracts as private records.
Rep. Jordan Teuscher, the bill’s sponsor, said the proposal’s goal is to keep Utah universities in competition with other universities across the country, as prospective athletes may choose schools where they can receive financial compensation. The bill states that compensation sources can not come from student fees or legislative appropriations.
If the bill passes, the Utah Board of Higher Education will be required to audit each institution and evaluate the money used to compensate each athlete starting in 2028. The bill also states that though athletes may receive compensation for NIL, they are not considered institution employees for their participation in athletic programs.
“The landscape is quickly shifting around the country of what is allowed, what’s not allowed, what the NCAA is doing, what court cases are doing,” Teuscher said. “If we really want our institutions to be able to compete, this is what we need to do.”
According to the proposal, the bill would remove previous requirements to submit contracts over $600 for review.
Those who voted against the bill questioned how these direct payments would comply with Title IX rules which require institutions to provide equal athletic opportunities to students regardless of sex.
“Now that we’re talking about direct payments from a university, I guess I don’t have my head wrapped around how that works with Title IX in ensuring there’s equitable opportunities for student-athletes,” shared Rep. Karen Peterson.
Though many individuals question whether the bill takes away transparency in college athletics, Salt Lake City media attorney Jeff Hunt believes payments made by public universities should fall under GRAMA and be subject to open records laws. Opponents have fought back, arguing that NIL contracts are considered education records and are therefore protected under the Family Educational Rights and Privacy Act, more commonly known as FERPA.
Author: Anna Mower
Photo courtesy of SUU
Editor: Heather Turner
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