Financial literacy law possible for Oklahoma student-athletes with NIL contracts

OKLAHOMA CITY (OBV) — The Oklahoma House of Representatives has a bill that could require student-athletes who have name, image and likeness (NIL) contracts to take financial literacy workshops.

House Bill 1305, written by Rep. Dick Lowe, R-Amber, requires universities and colleges to offer their student-athletes financial literacy workshops throughout the year.

The bill states that student-athletes must attend at least five hours of workshops within the first two semesters of participating in NIL activities.

“NIL opportunities can be life-changing for student-athletes, but they also come with serious financial responsibilities,” Lowe said. “House Bill 1305 ensures that these athletes are well-prepared to manage their earnings wisely, helping them avoid costly mistakes and set themselves up for long-term financial success.”

The workshops would provide student-athletes with information on foundational knowledge of budgeting, taxes, contracts, credit and debt management, savings, investments and entrepreneurship.

The bill also allows higher education institutions to provide free contract review, tax prep and other financial services to student-athletes.

Colleges can offer the financial course as academic credit and contract with third parties to provide the workshops. However, promotional referral programs or soliciting would be prohibited.

Student-athletes who do not complete the minimum five hours of financial literacy workshops would forfeit their eligibility to participate in NIL activities.

The bill recently passed the House Postsecondary Committee with a 7-1. It will next be heard in the House Education Oversight Committee.

The NCAA implemented rules on July 1, 2021, allowing Division I, Division II and Division III student-athletes the right to engage in NIL activities in accordance with their respective state’s law. The NCAA also allowed student-athletes to hire professional representation, such as an agent.