Education, Higher

Plain English Breakdown

The bill text does not provide specific details on the exact mechanisms or amounts of money generated by media networks and platforms, nor does it specify how talent fees will be used beyond supporting NIL activities.

Tennessee Higher Education Act for Student Athletes

This bill changes Tennessee laws about student athletes' rights to earn money from their names, images, and likenesses (NIL), and it sets rules for how colleges can help them do this.

What This Bill Does

• Allows college athletes in Tennessee to get paid for using their name, image, or likeness, as long as the payment is fair market value and not tied to performance or enrollment.
• Requires colleges to offer workshops on NIL contracts, taxes, wealth management, and personal branding for student athletes.
• Creates a statewide committee to oversee NIL activities, publish annual reports, and resolve disputes related to NIL agreements.
• Encourages colleges to develop media networks and platforms that distribute content featuring student athletes, ensuring free access for consumers while generating revenue.
• Allows colleges to collect talent fees from ticket sales and other sources to support NIL activities and ensure fair compensation for all athletes.

Who It Names or Affects

• College athletes in Tennessee who can earn money from their names, images, or likenesses (NIL).
• Colleges and universities in Tennessee that must provide workshops and mentorship programs for student athletes.
• Certified NIL representatives who need to be licensed under the athlete agent provisions of present law.

Terms To Know

Name, Image, and Likeness (NIL)

The legal right of a college athlete to earn money from their name, image, or likeness.

Talent Fee

A supplemental fee collected by colleges on revenue-generating activities like ticket sales to support NIL opportunities and compensate athletes fairly.

Limits and Unknowns

• The bill does not specify exact amounts of money that will be generated or how it will be distributed.
• It is unclear how much additional state revenue this legislation will bring in future fiscal years due to multiple unknown variables.

Official Summary Text

This bill removes present law provisions relative to an i
ntercollegiate
a
thlete's
n
ame,
i
mage, or
l
ikeness
("NIL") and, ins
tead, authorizes an intercollegiate athlete to earn compensation for the use of the athlete's name,
image, and likeness
according to this bill
. The compensation
so
earned must reflect fair market value and not be contingent upon athletic performance or en
rollment.
A
four-year public or private institution of higher education located in this state
("institution")
,
certified NIL collectives, and representatives may (i) establish NIL funds to
attract and manage revenue from NIL activities,
(ii) operate media
networks to
distribute exclusive content featuring intercollegiate athletes
if
the network
ensures free access to consumers to maximize audience reach, and allocates a percentage of media network-generated revenues to intercollegiate athletes featured in
the content and their certified NIL representatives and collaborates with professional content creators to ensure high-quality production and strategic distribution, and (iii) implement a talent fee on revenue streams to support NIL activities and compens
a
te intercollegiate athletes fairly.

This bill requires NIL programs to
prioritize equality and access and opportunity for all institutions, ensuring smaller institutions receive the same access to NIL opportunities as larger institutions.

CERTIFIED NIL
REPRESENTATIVE

This bill requires a certified
NIL representative who represents an intercollegiate athlete under this
bill
for purposes of securing compensation for the use of the athlete's name, image, or likeness
to
be licensed under
the athlete agent
provisions of present law
, and
to
satisfy the requirements
of the Revised Uniform Athlete Agents Act.
Certified NIL representatives must adhere to a fiduciary duty, acting in the best interests of the intercollegiate athlete at all times.
Additionally t
he secretary of state must maintain a publicly accessible registry of certified NIL representatives.

INSTITUTION DUTIES AND REQUIREMENTS

This bill requires institutions to (i) conduct mandatory
workshops for intercollegiate athletes covering NIL contra
ct negotiation, tax responsibilities, wealth management, and personal branding
, (ii) provide mentorship programs
connecting intercollegiate athletes with alumni and industry leaders to support NIL success
, and (iii) document and report on NIL
activities an
d revenues annually to the general assembly.

This bill authorizes a
n institution
to
establish a NIL program at the high school level to educate prospective intercollegiate athletes on NIL opportunities that comply with state and federal laws.

Talent fees

This bill authorizes an institution to implement a talent fee. If an institution authorizes a talent fee, then (i) the talent fee of a ticket sale must be no more than 10% of the ticket price, (ii) revenues generated must be allocated direct
ly toward NIL activities, (iii) the institution must ensure
transparency by reporting the use of talent fee revenues annually to the general assembly and the institution's governing board
, (iv) talent fee revenue
allocation must prioritize equitable compen
sation opportunities for all intercollegiate athletes, ensuring access for institutions with limited financial resources
, and (v) the revenue benefits intercollegiate athletes equitably across institutions.

This bill prohibits talent fee revenues from
d
isproportionately benefit
ing
intercollegiate athletes from a single sport but
,
instead
,

must
reflect balanced contributions to all athletic programs at an institution.
However, institutions may utilize talent
fee revenue to subsidize athletic scholarships
, facility upgrades, and athlete development programs
as

long as such
initiatives equally benefit intercollegiate athletes across all sports.

NIL platforms

This bill encourages institutions to develop direct-to-consumer NIL platforms to
amplify athlete
exposure, enhance fan engagement, and increase NIL revenue streams.
Such platforms may include social media channels,
podcasts
and video series, and merchandise collaborations. Institutions must offer free access to
such platforms to maximize audience r
each while providing premium sponsorship opportunities to generate revenue.
Additionally, institutions may leverage
such platforms to attract local and national sponsorships, ensuring the institution's athletes are positioned for NIL success on par with a
thletes from larger institutions worldwide.

Other duties

This bill encourages institutions to secure broadcast rights and partnerships with streaming services or local networks to increase NIL visibility and revenue opportunities. Institutions may cre
ate branded merchandise collaborations featuring intercollegiate athletes,
with a portion of proceeds directly benefiting intercollegiate athletes.
Institutions may also host NIL-centric events such as
athlete showcases, branded tournaments, or fan experi
ence days, with revenues shared among intercollegiate athletes and programs.

This bill authorizes institutions to
request matching funds from the state for investments in NIL infrastructure, including media network development, marketing campaigns, and e
ducational programs.

NIL OVERSIGHT COMMITTEE

This bill creates the statewide NIL oversight committee ("committee"). The
Tennessee higher education commission
must
appoint five members who have experience with NIL for intercollegiate athletes in this st
ate to the committee. The committee
must (i) monitor the implementation and impact of NIL activities, (ii) publish annual reports on NIL revenues, expenditures, and best practices, and (iii) resolve disputes related to NIL agreements.

In order to stag
ger the terms of the
committee members, two initial appointees serve two-year terms, two initial appointees serve three-year terms, and one initial appointee serves a four-year term. All subsequent appointments are for four-year terms. Committee members
may continue to serve on the committee after their term expires but only until a new member is appointed to replace the committee member. Committee members may be reappointed to multiple terms.

This bill prohibits state regulatory bodies from pursuing N
IL investigations.

INCENTIVE-BASED REVENUE-SHARING MODELS

This bill authorizes institutions to create
incentive-based revenue-sharing models that allocate
a minimum of 50% of
NIL-generated funds directly to intercollegiate athletes and the intercolleg
iate athletes' certified NIL representatives
; additional funds to
enhance scholarships, athletic facilities, and academic resources without reducing intercollegiate athlete compensation
; and reserved
revenues for community outreach programs and institution
al growth.

This bill requires media networks operated by an institution of NIL collective to showcase exclusive content
increase intercollegiate athlete exposure and fan engagement
, provide opportunities
for intercollegiate athletes to co-create content
and share revenues
, and include
revenue-sharing agreements to ensure equitable benefits for intercollegiate athletes, certified NIL representatives, and institutions.

This bill authorizes institutions to develop methods for
NIL compensation, such as tour
naments that guarantee payments to participating teams and partnerships with an intercollegiate athletic association as a licensor.
An institution may also reinvest a
portion of NIL revenues into marketing and digital strategies to attract additional spon
sorships and enhance NIL visibility for intercollegiate athletes.

REQUIREMENTS OF THE STATE

In order to address disparities
in institutional resources,
this bill requires
the state
to
prioritize support for NIL initiatives that benefit historically unde
rserved institutions.
T
he state must also encourage high school athletes to explore NIL opportunities.

NIL partnerships that foster community involvement and local business collaborations must receive priority for state support.

Current Bill Text

SENATE BILL 1419
By Akbari

HOUSE BILL 1386
By Harris

HB1386
001691
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 4,
Chapter 29; Title 49, Chapter 7; Title 49, Chapter
8 and Title 49, Chapter 9, relative to student
athletes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 49, Chapter 7, is amended by deleting
part 28 and substituting:
49-7-2801.
As used in this part:
(1) "Athletic program" means an intercollegiate athletic program at an
institution;
(2) "Institution" means a four-year public or private institution of higher
education located in this state;
(3) "Intercollegiate athlete" means a student enrolled in an institution who
participates in an athletic program;
(4) "Media network" refers to a platform created and operated by certified
NIL representatives, collectives, or institutions to distribute content directly to
consumers, including, but not limited to, social media, podcasts, and video
channels;
(5) "Name, Image, and Likeness (NIL)" means the legal right of an
intercollegiate athlete to earn compensation from the authorized use of the
intercollegiate athlete's name, image, or likeness; and

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(6) "Talent fee" means a supplemental fee applied to revenue­generating
activities by an institution, including, but not limited to, ticket sales, merchandise,
sponsorship deals, broadcast rights, and event concessions, to support NIL
opportunities.
49-7-2802.
(a) An intercollegiate athlete may earn compensation for the use of the
intercollegiate athlete's name, image, and likeness. The compensation earned pursuant
to this subsection (a) must reflect fair market value and not be contingent upon athletic
performance or enrollment.
(b) Institutions, certified NIL collectives, and representatives may:
(1) Establish NIL funds to attract and manage revenue from NIL
activities, including corporate sponsorships, alumni contributions, and third-party
collaborations;
(2) Operate media networks to distribute exclusive content featuring
intercollegiate athletes; provided, that the network:
(A) Ensures free access to consumers to maximize audience
reach;
(B) Allocates a percentage of media network-generated revenues
to intercollegiate athletes featured in the content and their certified NIL
representatives; and
(C) Collaborates with professional content creators to ensure
high-quality production and strategic distribution; and
(3) Implement a talent fee on revenue streams, including, but not limited
to, ticket sales, merchandise, sponsorship deals, and event concessions, to
support NIL activities and compensate intercollegiate athletes fairly.

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49-7-2803.
(a) A certified NIL representative who represents an intercollegiate athlete under
this part for purposes of securing compensation for the use of the athlete's name, image,
or likeness must be licensed under § 49-7-2104, and must satisfy the requirements of
chapter 7, part 21 of this title.
(b) Certified NIL representatives must adhere to a fiduciary duty, acting in the
best interests of the intercollegiate athlete at all times.
(c) The secretary of state shall maintain a publicly accessible registry of certified
NIL representatives.
49-7-2804.
(a) Institutions shall:
(1) Conduct mandatory workshops for intercollegiate athletes covering
NIL contract negotiation, tax responsibilities, wealth management, and personal
branding;
(2) Provide mentorship programs connecting intercollegiate athletes with
alumni and industry leaders to support NIL success; and
(3) Document and report on NIL activities and revenues annually to the
general assembly.
(b)
(1) There is established the statewide NIL oversight committee. The
Tennessee higher education commission shall appoint five (5) members who
have experience with NIL for intercollegiate athletes in this state to the statewide
NIL oversight committee. The statewide NIL oversight committee shall:
(A) Monitor the implementation and impact of NIL activities;

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(B) Publish annual reports on NIL revenues, expenditures, and
best practices; and
(C) Resolve disputes related to NIL agreements.
(2) In order to stagger the terms of the committee members, two (2) initial
appointees serve two-year terms, two (2) initial appointees serve three-year
terms, and one (1) initial appointee serves a four-year term. All subsequent
appointments are for four-year terms. A member's term of office begins on July 1
and expires on June 30. Committee members may continue to serve on the
committee after their term expires, but only until a new member is appointed to
replace the committee member. Committee members may be reappointed to
multiple terms.
49-7-2805.
(a) Institutions may create incentive-based revenue-sharing models that
allocate:
(1) A minimum of fifty percent (50%) of NIL-generated funds directly to
intercollegiate athletes and the intercollegiate athletes' certified NIL
representatives;
(2) Additional funds to enhance scholarships, athletic facilities, and
academic resources without reducing intercollegiate athlete compensation; and
(3) Reserved revenues for community outreach programs and
institutional growth.
(b) Media networks operated by an institution or NIL collective must:
(1) Showcase exclusive content to increase intercollegiate athlete
exposure and fan engagement;

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(2) Provide opportunities for intercollegiate athletes to co-create content
and share revenues; and
(3) Include revenue-sharing agreements to ensure equitable benefits for
intercollegiate athletes, certified NIL representatives, and institutions.
(c) An institution may establish an NIL program at the high school level to
educate prospective intercollegiate athletes on NIL opportunities that comply with state
and federal laws.
49-7-2806.
(a) Institutions are encouraged to secure broadcast rights and partnerships with
streaming services or local networks to increase NIL visibility and revenue opportunities.
(b) Institutions may create branded merchandise collaborations featuring
intercollegiate athletes, with a portion of proceeds directly benefiting intercollegiate
athletes.
(c) Institutions may host NIL-centric events such as athlete showcases, branded
tournaments, or fan experience days, with revenues shared among intercollegiate
athletes and programs.
(d) State regulatory bodies shall not pursue NIL investigations.
(e) NIL programs shall prioritize equality and access and opportunity for all
institutions, ensuring smaller institutions receive the same access to NIL opportunities as
larger institutions.
(f) The state shall encourage high school athletes to explore NIL opportunities.
(g) Institutions may develop methods for NIL compensation, such as
tournaments that guarantee payments to participating teams and partnerships with an
intercollegiate athletic association as a licensor.

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(h) An institution may reinvest a portion of NIL revenues into marketing and
digital strategies to attract additional sponsorships and enhance NIL visibility for
intercollegiate athletes.
49-7-2807.
(a) An institution may implement a talent fee. If an institution authorizes a talent
fee, then:
(1) The talent fee of a ticket sale may be no more than ten percent (10%)
of the ticket price;
(2) Revenues generated must be allocated directly toward NIL activities,
including athlete compensation, NIL program development, and fan engagement
platforms;
(3) The institution must ensure transparency by reporting the use of
talent fee revenues annually to the general assembly and the institution's
governing board;
(4) Talent fee revenue allocation must prioritize equitable compensation
opportunities for all intercollegiate athletes, ensuring access for institutions with
limited financial resources; and
(5) The revenue benefits intercollegiate athletes equitably across
institutions.
(b) Talent fee revenues must not disproportionately benefit intercollegiate
athletes from a single sport, but instead reflect balanced contributions to all athletic
programs at an institution.
(c) Institutions may utilize talent fee revenue to subsidize athletic scholarships,
facility upgrades, and athlete development programs; provided, these initiatives equally
benefit intercollegiate athletes across all sports.

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49-7-2808.
(a) Institutions are encouraged to develop direct-to-consumer NIL platforms to
amplify athlete exposure, enhance fan engagement, and increase NIL revenue streams.
(1) These platforms may include:
(A) Social media channels dedicated to exclusive intercollegiate
athlete content;
(B) Podcasts and video series featuring intercollegiate athlete
interviews, game highlights, and personal stories; and
(C) Merchandise collaborations directly tied to NIL activities,
where intercollegiate athletes share in the revenue.
(2) Institutions must offer free access to such platforms to maximize
audience reach while providing premium sponsorship opportunities to generate
revenue.
(b) Institutions may leverage such platforms to attract local and national
sponsorships, ensuring the institution's athletes are positioned for NIL success on par
with athletes from larger institutions worldwide.
49-7-2809.
(a) To address disparities in institutional resources, the state shall prioritize
support for NIL initiatives that benefit historically underserved institutions.
(b) Institutions may request matching funds from the state for investments in NIL
infrastructure, including media network development, marketing campaigns, and
educational programs.
(c) NIL partnerships that foster community involvement and local business
collaborations must receive priority for state support.

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SECTION 2. If any provision of this act or its application to any person or circumstance
is held invalid, then the invalidity does not affect other provisions or applications of the act that
can be given effect without the invalid provision or application, and to that end, the provisions of
this act are severable.
SECTION 3. This act takes effect July 1, 2025, the public welfare requiring it.