On Thursday morning, Virginia Governor Glenn Youngkin signed a bill that will allow Virginia universities to enter into name, image and likeness (NIL) contracts directly with student-athletes, a development that could bring about big changes across college sports.

Because the NCAA currently prohibits schools from paying athletes directly, most NIL funds are collected and distributed through third-party organizations known as associations. For example, much of the University of Alabama's NIL resources are distributed through Yeah Alabama, which is not directly affiliated with the UA.

Virginia's new law, which goes into effect July 1, contradicts NCAA rules. The bill would make it illegal for the NCAA to punish schools for “rules violations.”[ing] [the NCAA’s] “Rules and Regulations Regarding Name, Image, or Likeness” Virginia schools cannot pay players based on their performance on the field, but they can use athletic department resources to pay players for appearing in campaigns and promotions.

The law wouldn't make the association obsolete — University of Virginia athletic director Carla Williams said there are too many moving parts and not enough open communication for that to be realistic — but it would bring the association and athletic department closer to a unified structure.

In December, NCAA president Charlie Baker proposed allowing all schools to pay players through non-state actors' contracts, but “the schools that would actually write the rules have so far balked at leaving the player market under the athletic department's control,” according to ESPN's Dan Murphy.

NCAA President Charlie Baker has called for schools to be able to pay players directly for NIL, but the schools that actually write the rules have so far resisted leaving the player market under the athletic department's control.

— Dan Murphy (@DanMurphyESPN) April 18, 2024

Virginia's new bill could force the issue, and if the powers that be in D1 sports don't fast-track Baker's proposal to a vote, Virginia schools could gain a big recruiting advantage.

The bill is the latest in a string of state-level bills across the country that seek to take away the NCAA's power. Mitt Winter, a former basketball player at the College of William & Mary and a prominent NIL lawyer, said: Charlottesville Newspaper “I don't think the NCAA has much legal recourse,” he said, pointing to the NCAA's recent back-to-back losses in lawsuits brought by the attorneys general of Virginia and Tennessee.

Youngkin stressed that he wants the NIL to be run by “universities” rather than an organization like the NCAA.

“This bill takes the most significant step, first of all, in putting our institutions of higher education, our universities, at the forefront of putting policies and procedures that they can review and approve and actually help administer this,” the governor said. “This will be a program that is administered by Virginia universities and colleges, not some outside agency or entity.”

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The bill also clarifies that Virginia student-athletes still would not be considered employees.

The bill signing ceremony was attended by several representatives of Virginia's D1 universities, all of whom had lobbied for the NIL bill's passage.

“We are grateful to the state Legislature and Governor Youngkin for their proactive approach in the NIL field,” said Virginia Tech athletic director Whit Babcock. “We value our student-athletes and recognize the value they bring to the long-term success of our athletic programs.”

UVA's Williams thanked lawmakers for “ensuring that Virginia student-athletes have every opportunity to take full advantage of NIL.”

“Ultimately, and most importantly, it gives us the opportunity to fully support our student-athletes and coaches in their NIL activities,” she added.

Charles Vaughn is a contributing writer for Yellow Hammer News.