SB230 Alabama 2021 Session

Summary

Primary Sponsor

Gerald H. AllenSenator

Republican

Co-Sponsors

Del MarshRodger SmithermanJ.T. WaggonerTom Whatley

Session

Regular Session 2021

Title

Student athletes, may earn compensation for use of name, image, or likeness, Alabama Collegiate Athletics Commission, established, conditions for compensation

Summary

SB230 would let Alabama college athletes earn money from the use of their name, image, or likeness, create a state commission to oversee NIL issues, and require financial literacy training for athletes.

What This Bill Does

It authorizes student athletes to be compensated for NIL based on market value and prevents schools from unduly restricting that compensation. It sets brand and apparel restrictions schools may enforce, requires third-party payment and disclosure of contracts to the school, and protects scholarships from being cut due to NIL. It creates the Alabama Collegiate Athletics Commission to issue NIL rules, oversee athlete agents, and establish an independent dispute process, plus require a mandatory financial literacy and life skills workshop for athletes. It also outlines penalties for violations and specifies contract and representation rules related to NIL.

Who It Affects

• Student athletes: would be able to earn compensation for NIL, must disclose contracts to their college, may hire registered athlete agents or licensed attorneys, and scholarships could not be revoked or reduced because of NIL earnings or representation.
• Postsecondary educational institutions: must allow NIL compensation under the act, enforce certain brand/insignia restrictions, provide financial literacy workshops, and participate in the new Alabama Collegiate Athletics Commission's rulemaking and dispute resolution processes.

Key Provisions

• Student athletes may earn compensation for the use of their name, image, or likeness and compensation must reflect market value.
• Institutions cannot unduly restrict NIL compensation and may prohibit endorsements from tobacco, alcohol, controlled substances, adult entertainment, or gambling brands; may limit wearing insignia of certain entities during competition or in licensed gear.
• Compensation may only come from a third party not owned or operated by the student athlete's institution; institutions and their staff cannot directly pay or direct compensation to the athlete.
• Athlete representation for NIL deals is allowed; agents must be registered as athlete agents in Alabama or be licensed attorneys in good standing.
• Before contracts are signed, athletes must disclose them to their institution; contracts cannot extend beyond the athlete’s participation in the sport.
• Scholarships cannot be revoked or reduced solely due to NIL earnings or the athlete obtaining professional representation.
• The Alabama Collegiate Athletics Commission is created to set NIL rules, manage athlete agents, and oversee an independent dispute resolution process; it can impose civil penalties up to $1,000 for violations.
• Institutions must provide a financial literacy and life skills workshop (minimum five hours) at the beginning of the athlete’s first and third academic years, covering topics like financial aid, debt management, budgets, time management, and available academic resources.

AI-generated summary using openai/gpt-5-nano on Feb 23, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Student Athletes