New law will protect Texas schools against NCAA penalties starting July 1

Adam Winkler Image
Saturday, July 1, 2023
Will Texas colleges and universities soon be untouchable by the NCAA?
House Bill 2804 features amendments to the state's original laws allowing NCAA student-athletes to be paid for their Name, Image, and Likeness.

HOUSTON, Texas (KTRK) -- He's a baller turned broker.

Former University of Houston men's basketball player Landon Goesling is now the director of sales and development for Linking Coogs, a collective facilitating endorsement opportunities for UH student-athletes.

"We've done eight different team-wide deals at the University of Houston - both men's and women's sports," Landon explained to ABC13. Goesling says those deals include Gallery Furniture, the Daspit Law Firm, and Landry's Inc.

Since rules changed to allow NCAA student-athletes to be paid for their Name, Image, and Likeness (NIL), Landon says Linking Coogs has surpassed $4.5 million in endorsement deals and partnerships. He knows a big deal when he sees it. Landon says the new state law going into effect Saturday fits that criteria.

"Absolutely, it's going to benefit us," Goesling said of the new Texas law. "But more importantly, it will benefit the student-athletes when you have that backing and support system."

Gov. Greg Abbott signed House Bill 2804 on June 10. It goes into effect Saturday, July 1.

The legislation, which features amendments to the state's original NIL laws from two years ago, protects colleges and universities in Texas.

"The specific language says an association or a conference can't enforce a rule or a punishment/penalty against a school for basically taking advantage of any of these NIL opportunities that the state law now allows for," Daniel Hare explained to ABC13.

Hare, a former NCAA Director of Athletics, is a leading authority on NIL and works as an adjunct sports law professor at Baylor University. He points to language in the new Texas law no longer requiring athletic departments to remain independent of a school's NIL collective - like Linking Coogs.

"In the original bill, the athletes weren't allowed to use university intellectual property - meaning uniforms, logos, facilities - any of that kind of stuff," Hare, who leads Varsity Search, noted.

"We're really excited about the laws changing," Landon added. "It'll just be a little bit easier for us to navigate this space."

And the NCAA has tried to put a hurdle in that space - just days before the new Texas law takes effect. A memo sent out this week says that even if state laws give the green light to specific NIL affairs, schools can still be punished by the NCAA.

"They're still trying to hold on to the model they've had forever and ever," Hare said of the NCAA. "The difference now with this new Texas law is it's specifically saying the NCAA cannot stop you from doing these things. The NCAA will be initiating an enforcement action of their rules which will result, most likely, in litigation."

So a new Texas law, coupled with the NCAA's response, could be setting up a college court battle - and not the basketball, tennis, or volleyball court.

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