Priority Senate legislation will keep Kentucky competitive.
FRANKFORT, KY (Feb. 18, 2025)—Senate Majority Floor Leader Max Wise, R-Campbellsville, will introduce Senate Bill (SB) 3 this afternoon. The bill is the latest step in modernizing Kentucky’s name, image, and likeness (NIL) laws to keep the state’s universities competitive as the national NIL landscape continues to evolve.
Wise has been a leading voice on NIL policy. He previously sponsored SB 6 in 2022, which created Kentucky’s first legal framework for student-athlete compensation. That legislation, developed in bipartisan collaboration with former Senate Minority Floor Leader and now U.S. Congressman Morgan McGarvey, positioned Kentucky as an early leader in NIL reform, ensured universities could attract and retain top talent while protecting student-athletes rights. SB 3 builds on that foundation, aligning state law with emerging national standards to preserve Kentucky’s place at the forefront of college athletics.
The legislation directly responds to the House v. NCAA settlement, a pending federal agreement that could fundamentally change how student-athletes are compensated. A final court ruling is expected on April 7. If approved, the settlement would allow NCAA member institutions that opt in to begin directly compensating student-athletes. Universities could allocate up to $20-22 million annually in revenue-sharing for athletes starting in the 2025-26 academic year. The settlement also establishes a $2.576 billion fund to provide NIL backpay to eligible student-athletes who competed between 2016 and Sept. 15, 2024, to ensure past players receive compensation reflective of their contributions to college sports.
To keep Kentucky’s universities on solid ground amid these sweeping changes, SB 3 updates state law to reflect the anticipated federal settlement. The legislation permits universities and affiliated athletic organizations to enter into direct compensation agreements with student-athletes so Kentucky institutions are fully prepared to participate in the new system. It also aligns NIL deals with national fair market value models, allowing schools to remain competitive. Additionally, the bill will enable universities to sublicense an athlete’s NIL to third parties, which opens the door for expanded earning opportunities beyond direct university payments. SB 3 establishes legal protections for contract disputes to safeguard student-athletes and provides much-needed clarity and enforcement mechanisms in this new compensation era.
With the federal agreement pending, SB 3 includes an emergency provision that will take effect immediately upon passage. This will allow Kentucky’s universities to implement agreements and ensure a seamless transition into the new framework.
“College athletics is changing faster than ever, and Kentucky needs to be adaptive to protect student-athletes and ensure they have the best opportunities available to them to maximize their success,” Wise said.
As NIL policies evolve, SB 3 helps Kentucky’s universities remain ahead of the curve. It provides a clear path forward that benefits student-athletes, schools, and the long-term future of collegiate sports in the commonwealth.
PHOTO: Senate Majority Floor Leader Max Wise. Feb. 11, 2025. Photo Credit: David Hargis, Photographer, Public Information Office, Legislative Research Commission.
(Dustin R. Isaacs – Office of Senate Majority Floor Leader Max Wise)