HARRISBURG, PA — Pennsylvania House Republican Leader Jesse Topper (R-Bedford/Fulton) and Rep. Perry Stambaugh (R-Perry/Juniata) have announced plans to introduce legislation aimed at safeguarding student-athletes who earn compensation from the use of their name, image, and likeness (NIL).
With NIL compensation opportunities expanding, particularly as federal legal developments unfold, Pennsylvania currently lacks a state-level structure to protect student-athletes. According to Topper, this leaves athletes vulnerable to financial mismanagement and without mechanisms to support them in the event of career-ending injuries.
“NIL is one of the most dynamic and evolving spaces in the national sports market that has become a life-changing positive for many student-athletes and families,” Topper stated. “As the NIL landscape continues to advance at the federal level, it is appropriate for state legal supplements to ensure student-athletes are protected at a vulnerable time in their lives.”
Key Features of the Proposal
The legislation, as outlined in a co-sponsorship memo, includes several measures designed to help student-athletes make informed financial decisions and safeguard their earnings. A central element of the proposal requires post-secondary institutions to provide student-athletes with the option to deposit a portion of their NIL income or shared revenue into trust accounts.
These trust accounts would involve the following provisions:
- Graduation-Based Access: Funds would only become fully accessible upon graduation or when the athlete leaves the educational institution.
- Hardship Withdrawals: Limited withdrawals would be permitted in cases of verified financial hardship and would be subject to oversight.
- Professional Management: Accounts would be professionally managed by financial firms with expertise in education-based trusts, ensuring investment transparency and responsible growth of funds.
- Autonomy for Athletes: The system would operate on an opt-in basis, empowering athletes to maintain control over their earnings while promoting long-term savings.
To complement these measures, the legislation would require colleges and universities to offer financial literacy programs specifically tailored to student-athletes. The educational programs would aim to equip athletes with essential skills to manage their income effectively, reduce financial risks, and plan for the future.
“Our legislation will ensure that students have the financial education and protection available to safeguard their NIL assets while giving them the opportunity to save NIL earnings should they become injured or otherwise incapable of pursuing their athletic career,” Topper added.
Addressing a Nationwide Gap
The proposal comes at a time when the NIL marketplace is undergoing rapid change. While new federal court rulings could soon reshape the NIL landscape further, Pennsylvania legislators see the need for state-level laws that address immediate gaps in athlete protection.
By promoting responsible financial practices and providing structured support, the Topper-Stambaugh legislation aims to mitigate risks for student-athletes while enabling them to capitalize on their NIL opportunities.
The bill’s sponsors also highlighted the importance of collaboration between educational institutions and experienced financial firms to ensure the smooth implementation of these proposed protections.
As the legislation enters the formal drafting stage, it signals Pennsylvania’s commitment to balancing the potential benefits of NIL compensation with practical safeguards for the student-athletes who make it possible.
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