The proposed Alabama bill would, like other state bills, clear the way for student-athletes to receive compensation for licensing, sponsorships or endorsements and the like, and, under the Rep. Hatcher proposal, it would gives student-athletes the option to seek compensation for their NIL either while in school or from a school funded annuity upon graduating.
Alabama schools would also be required to put on financial literacy and life skills workshops for college athletes.
California and Colorado’s NIL laws are not set to take effect until 2023, the same year Alabama’s NIL law would be enacted if Hatcher’s bill makes it through the legislative process. Hatcher’s proposal of an annuity, however, would be the first of its kind. The current text of Hatcher’s bill would require every college, community college and university in the state to deposit money annually — up to $10,000 — into an annuity for each student-athlete that opts not to seek compensation for their NIL. The annuity would apply to every athlete of both genders in all sports. Upon graduation, students would receive the entirety of the annuity the institution created on their behalf. Theoretically, a university in Alabama could deposit $10,000 in the annuity for every year a student played, for a total of $40,000 the student would receive upon graduation.
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