MI Legislation Allows College Athletes To Receive Compensation

MICHIGAN — Student-athletes can use their own name, image, likeness and reputation for financial compensation for the first time in Michigan history following the passing of bipartisan legislation Wednesday.

A pair of bills passed Wednesday allow players in any sport and in all collegiate divisions to use agents to earn money from their own image, name or likeness. Those students cannot enter into apparel contracts that conflict with the apparel contracts of their school, however. They also must disclose contracts to their school prior to signing, according to the legislation.

“For years we have all enjoyed the incredible talent of young athletes across the state," Michigan Gov. Gretchen Whitmer said in a statement Wednesday. "This legislation will change the lives of young men and women for years to come. As only the second state in the nation to pass this historic legislation, I am proud to sign this bipartisan legislation today on behalf of our current and future student-athletes."

House Bill 5217 prohibits post-secondary educational schools from enforcing rules that prohibit student-athletes from profiting from promotional deals. Students can profit for their name, image, or likeness and cannot be prevented from playing intercollegiate sports or receiving scholarships for doing so.

A second bill passed Wednesday, House Bill 5218, repeals a section of the Penal Code that prohibits agents from inducing students into contracts before their eligibility for college athletics expires.

The bill also repeals a section of the Revised Judicature Act, which creates civil liability for interfering with the “prospective advantage” given by an institution of higher education by virtue of its relationship with the student-athlete by promising an improper gift or service to the athlete, if that gift results in injury to the school.

“It’s high time that collegiate players are respected and compensated for the talents that they’ve spent their entire lives trying to perfect,” said Joique Bell, a former Detroit Lions running back who attended Wayne State University. “I’ve always supported the efforts to protect the best interests of athletes, especially those with tremendous abilities who play at all levels of the NCAA.

"Working two jobs, going to school full time, playing football and raising my son is a lot for any person, especially financially," Bell added. "My story is just one of many for collegiate student-athletes. We need to continually find ways to help student-athletes get ahead and build their brands early, while also protecting the players and the integrity of the sport.”

Michigan is among the first states to pass and sign legislation surrounding the compensation of student-athletes, according to Whitmer's office.

The legislation takes effect Dec. 31, 2022.