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OKLAHOMA CITY — Universities would be allowed to commit millions of dollars to pay football players and other athletes under a bill that has gained momentum at the Capitol.
Senate Bill 490, which passed off the Senate floor on a 42-3 vote, arrived in the Legislature in the wake of Executive Order 2025-01, signed by Gov. Kevin Stitt in January. The order set the stage for the University of Oklahoma, Oklahoma State University and other institutions to begin directly compensating athletes for the use of their names, images and likenesses.
It was noted at the time Stitt signed the order that universities in other states had already been given the green light to pay athletes to play. Additionally, it was anticipated that a landmark national lawsuit, House v. NCAA, would be resolved by this summer, establishing NIL rules to be followed by NCAA member institutions across the country.
Under provisions of the resolution, there are two ways that a student athlete might be paid: either directly through a university or by a collective or booster organization.
Sen. Todd Gollihare, R-Kellyville, who authored SB 490, said its passage into law would help ensure an even playing field for universities in Oklahoma. The rules for OU need to be the same, he said, as they are for Alabama, Texas and other universities in the Southeast Conference. They also need to be consistent in Oklahoma so as not to allow for an advantage that might favor OU, as a member of the SEC, over OSU, a member of the Big 12.
Gollihare said that while SB 490 would allow universities to commit up to $20.5 million as pay for athletes, they would not be allowed to tap into any taxpayer funds appropriated by the state. The money would have to be generated through conference revenue streams based on things like season ticket sales, corporate sponsorships, donations, advertising or fundraisers.
According to the bill’s language, despite the pay they would receive, student athletes would not be considered employees either of universities or their collegiate athletic associations. Additionally, a university would be allowed to opt out of a pay deal if an athlete were to do something that would negatively impact or reflect adversely on the institution or its athletic program.
Gollihare described what would occur under the bill as a “revenue sharing agreement” between student athletes and their institutions.
Based on a formula determined as part of the House v. NCAA lawsuit, universities would be allowed to commit up to $20.5 million to athlete pay. That amount, representing 22% of certain classes of revenue, would be recalculated annually.
“The university only has control over $20.5 million, which they can distribute however they want to any of the sports or any of the athletes individually,” Gollihare said. “Further, there is a collective system which is apart from the university. (It) can be boosters or donors who can get together and offer a student athlete whatever they want to offer.”
In response to questions raised by Sen. Dusty Deevers, R-Elgin, Gollihare said he didn’t believe the legislation would leave a university or the state vulnerable if an athlete were to file a lawsuit in the future over some NIL deal gone bad. He also expressed confidence that the system would require transparency to avoid any potential for a “shadow payroll system” resulting from inappropriate relationships between universities and booster organizations.
“Members, today you stand on the sidelines of history watching the end of an era, the end of an amateur athlete (era),” Gollihare said. “We are in a competition that has already started. This is also the start of a larger, far-reaching conversation on revenue sharing and equity between the sports and athletes.”
SB 490 advanced for consideration by the House of Representatives.
Paying student athletes: Bill aiming for level playing field passes in Senate
- Mar 18, 2025 Updated 4 hrs ago
Steve Metzer
Tulsa World Capitol Bureau Staff WriterOKLAHOMA CITY — Universities would be allowed to commit millions of dollars to pay football players and other athletes under a bill that has gained momentum at the Capitol.
Senate Bill 490, which passed off the Senate floor on a 42-3 vote, arrived in the Legislature in the wake of Executive Order 2025-01, signed by Gov. Kevin Stitt in January. The order set the stage for the University of Oklahoma, Oklahoma State University and other institutions to begin directly compensating athletes for the use of their names, images and likenesses.
It was noted at the time Stitt signed the order that universities in other states had already been given the green light to pay athletes to play. Additionally, it was anticipated that a landmark national lawsuit, House v. NCAA, would be resolved by this summer, establishing NIL rules to be followed by NCAA member institutions across the country.
Under provisions of the resolution, there are two ways that a student athlete might be paid: either directly through a university or by a collective or booster organization.
Sen. Todd Gollihare, R-Kellyville, who authored SB 490, said its passage into law would help ensure an even playing field for universities in Oklahoma. The rules for OU need to be the same, he said, as they are for Alabama, Texas and other universities in the Southeast Conference. They also need to be consistent in Oklahoma so as not to allow for an advantage that might favor OU, as a member of the SEC, over OSU, a member of the Big 12.
Gollihare said that while SB 490 would allow universities to commit up to $20.5 million as pay for athletes, they would not be allowed to tap into any taxpayer funds appropriated by the state. The money would have to be generated through conference revenue streams based on things like season ticket sales, corporate sponsorships, donations, advertising or fundraisers.
According to the bill’s language, despite the pay they would receive, student athletes would not be considered employees either of universities or their collegiate athletic associations. Additionally, a university would be allowed to opt out of a pay deal if an athlete were to do something that would negatively impact or reflect adversely on the institution or its athletic program.
Gollihare described what would occur under the bill as a “revenue sharing agreement” between student athletes and their institutions.
Based on a formula determined as part of the House v. NCAA lawsuit, universities would be allowed to commit up to $20.5 million to athlete pay. That amount, representing 22% of certain classes of revenue, would be recalculated annually.
“The university only has control over $20.5 million, which they can distribute however they want to any of the sports or any of the athletes individually,” Gollihare said. “Further, there is a collective system which is apart from the university. (It) can be boosters or donors who can get together and offer a student athlete whatever they want to offer.”
In response to questions raised by Sen. Dusty Deevers, R-Elgin, Gollihare said he didn’t believe the legislation would leave a university or the state vulnerable if an athlete were to file a lawsuit in the future over some NIL deal gone bad. He also expressed confidence that the system would require transparency to avoid any potential for a “shadow payroll system” resulting from inappropriate relationships between universities and booster organizations.
“Members, today you stand on the sidelines of history watching the end of an era, the end of an amateur athlete (era),” Gollihare said. “We are in a competition that has already started. This is also the start of a larger, far-reaching conversation on revenue sharing and equity between the sports and athletes.”
SB 490 advanced for consideration by the House of Representatives.
