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ew legislation in some U.S. states will now allow athletes to receive compensation for usage of their name, image, or likeness (NIL).

This is in contrast to the current National Collegiate Athletic Association (NCAA) rules, which forbid college athletes to earn a direct income from brand endorsements and deals.

The new legislation has reignited the debate over compensation for college athletes in the United States.

Despite the NCAA being a non-profit organisation, college athletes in the U.S. generate considerable media power and television contracts.

The revenue made through college sports is mostly not shared with the athletes themselves, and typically distributed through universities, broadcasters, and sponsors.

NCAA student athletes are legally defined as amateurs, meaning they are not eligible for any form of direct or indirect payment.

New legislation such as California’s ‘Fair Pay to Play Act’, will enable sponsors and brands to contract directly with a student athlete for deals relating to their NIL.

With more states creating new legislation, the NCAA and federal government are considering a nation-wide set of laws to regulate income earned from NIL rights.

New country-wide laws would not only make administration easier for the NCAA but also enable brands to sponsor teams and players in any state.

This talk comes as the NCAA prepare for their popular ‘March Madness’ tournament.

The college basketball competition is set to take place entirely in Indiana, with most games played in Indianapolis amid the COVID-19 pandemic.