This one kind of flew under the radar and shade to me via email, but here are the key points of this new state law, which some of it is in line with a proposed settlement between the NCAA and student-athletes that’s pending before a federal judge.
Under the original law, universities and colleges were simply directed to allow student-athletes to earn NIL compensation. The new law, which went into effect immediately on May 7, now explicitly allows universities and colleges to directly pay student-athletes. It also allows the schools to work with third-party organizations to work out deals with student-athletes. But the law also is designed to prevent student-athletes from signing contracts with places like a marijuana dispensary or alcoholic beverage companies.
Interesting segment of the law allows universities to conduct so-called “50/50 raffles" to raise money to pay their athletes. Those raffles, in which half of the funds raised through raffle ticket sales are paid to a winner selected at random and the other half is paid to a pre-selected beneficiary, were already legal in Arizona. There is no cap to the amount schools can play student-athletes directly. Furthermore, the FOIA does not apply to the contracts between student-athletes and the school, so the books are still closed in that regard. And student-athletes are still not considered employees under this law.
Bottom line this new law is creating a level playing field with other states so student-athletes attending colleges in the state are not at a disadvantage.
Under the original law, universities and colleges were simply directed to allow student-athletes to earn NIL compensation. The new law, which went into effect immediately on May 7, now explicitly allows universities and colleges to directly pay student-athletes. It also allows the schools to work with third-party organizations to work out deals with student-athletes. But the law also is designed to prevent student-athletes from signing contracts with places like a marijuana dispensary or alcoholic beverage companies.
Interesting segment of the law allows universities to conduct so-called “50/50 raffles" to raise money to pay their athletes. Those raffles, in which half of the funds raised through raffle ticket sales are paid to a winner selected at random and the other half is paid to a pre-selected beneficiary, were already legal in Arizona. There is no cap to the amount schools can play student-athletes directly. Furthermore, the FOIA does not apply to the contracts between student-athletes and the school, so the books are still closed in that regard. And student-athletes are still not considered employees under this law.
Bottom line this new law is creating a level playing field with other states so student-athletes attending colleges in the state are not at a disadvantage.
New Arizona law allows colleges and universities to pay student athletes
Four years after Arizona first allowed payments to student athletes, a new law expands the ways universities and colleges can compensate sought-after sports stars and raise the money to pay them.
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