Beshear: Kentucky college athletes can now profit off their own endorsements

Athletes at Kentucky universities will be able to make money off their own endorsements like others around the country in states where name, image and likeness laws are set to go into effect on July 1.

Kentucky Gov. Andy Beshear issued an executive order Thursday allowing college athletes in the state to profit off their name, image and likeness — popularly known as NIL.

"Today’s step was done in cooperation with all of our public universities as well as leadership of both parties,” Beshear said in a news release. “This action ensures we are not at a competitive disadvantage in recruiting, and also that our student athletes have the same rights and opportunities as those in other states. For any individual athlete, their name, image and likeness are their own and no one else’s.”

Eight states have NIL laws scheduled to go into effect on July 1, but a similar Kentucky bill filed by state senator Morgan McGarvey, D-Louisville, in 2019 did not advance in the Republican-controlled legislature. The NCAA has pushed for Congress to pass a federal NIL law, but as it became clear no federal law would be signed before July 1, there has been growing concern across the college sports world that athletes in states with NIL laws would be able to start making money off endorsements next month while those in states without them would not.

Beshear's executive order was met with bipartisan support.

“This has long been an issue of fairness for student-athletes, but last week’s Supreme Court ruling also places our universities at a competitive disadvantage as other states move forward,” House Speaker David Osborne, a Republican, added. “These temporary steps address the immediate need, while we continue working with universities and other stakeholders to craft comprehensive legislation for the 2022 regular session.”

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Sports Illustrated reported Wednesday the NCAA had abandoned its own NIL legislation in favor of a "more permissive model" that would allow schools in states without a NIL law going into effect on July 1 to construct their own guidelines for athletes profiting off their endorsements, "as long as they use guiding principles such as prohibiting NIL ventures designed as pay-for-play or recruiting inducements." Schools in states with NIL laws would be able to follow those laws without violating NCAA policies.

The plan is similar to one recently proposed by six Division I conference commissioners when it became apparent Congress would not pass a federal law before the state laws go into effect next month.

Background:'Ahead of the game': Why Opendorse gives Louisville student-athletes an edge with NIL bill

The NCAA measure is considered a stopgap until a federal law is passed.

"To be sure, a federal solution that creates a single standard for all students athletes in all states is the best path forward, but we shouldn’t wait for that policy direction to provide innovative and strong ways the best experience for our student athletes at Kentucky, including in the area of name, image and likeness," UK athletic director Mitch Barnhart told the school's athletics committee last week. 

Even with an uncertain outlook for when athletes in Kentucky would be able to start profiting off their endorsements, the state's universities have been moving ahead with plans to help those athletes make the most of the opportunity when it became available.

Both Kentucky and Louisville have long partnered with social media marketing companies like Opendorse and INFLCR to help athletes grow their online followings. After last week's athletics committee meeting, UK issued a news release promoting its "Kentucky Road" program to help athletes in the era of NIL.

"We’ve had conversations about it," Kentucky basketball guard Kellan Grady, a transfer from Davison, recently said. "I think it’s important for players to be able to monetize their experience, especially at a place like Kentucky and schools that are similar and playing in big conferences, creating a lot of revenue for the school. I think it is important to be able to have an opportunity to be able to benefit somehow on that."

"It's great for athletes to finally have the chance to be rewarded for the work they put in," Louisville linebacker CJ Avery recently said. "As far as my stance on it, we 100% should (be able to profit). Each athlete puts so much work in and you should be able to be rewarded. ... I think it's a great thing."

Background:New social media company INFLCR working with UK basketball to build players' brands

While the biggest beneficiaries of NIL rules may be athletes on the highest-profile teams like the Kentucky and Louisville men's basketball squads, advocates have pointed to the ability of athletes in non-revenue sports with large social media followings to also profit off their own endorsements.

The Louisville athlete with the largest social media following is women's basketball player Hailey Van Lith, who has more than 721,000 followers on Instagram. Recent UK graduate Madison Lilly, the reigning volleyball National Player of the Year, has more than 25,000 Instagram followers.

NIL rules are expected to have a profound impact in recruiting as programs with the largest fan bases pitch to high school prospects and transfers their ability to maximize endorsement earnings.

"Obviously, we have to wait to see exactly what the rules state, but no one should be able to do it better for men’s basketball than our program," Kentucky men's basketball coach John Calipari said earlier this spring.

This story will be updated.

Email Jon Hale at jahale@courier-journal.com; Follow him on Twitter at @JonHale_CJ.