SB 1419 - HB 1386
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
March 15, 2025
Fiscal Analyst: Laura Moore | Email: laura.moore@capitol.tn.gov | Phone: 615-741-2564
SB 1419 - HB 1386
SUMMARY OF BILL: Deletes and rewrites state regulations relative to compensation for
the use of an intercollegiate athlete's name, image, or likeness (NIL). Redefines “intercollegiate
athlete” to mean a student enrolled in a four-year public or private institution of higher education
and who participates in an athletic program. Requires the compensation earned by an intercollegiate
athlete using their NIL to reflect fair market value and not be contingent upon athletic performance
or enrollment.
Authorizes institutions of higher education, certified NIL collectives, and representatives to: (1)
establish NIL funds to attract and manage revenue from NIL activities, including corporate
sponsorships, alumni contributions, and third-party collaborations; (2) operate media networks to
distribute exclusive content featuring intercollegiate athletes, provided that the network ensures free
access to consumers, allocates a percentage of network-generated revenues to intercollegiate athletes
featured in the content and their certified NIL representatives, and collaborates with professional
content creators to ensure high-quality production and strategic distribution; and (3) implement a
talent fee on revenue streams, including, but not limited to, ticket sales, merchandise, sponsorship
deals, and event concessions, to support NIL activities and compensate intercollegiate athletes fairly.
Authorizes institutions to create incentive-based revenue-sharing models that allocate: (1) a
minimum of 50 percent of NIL-generated funds directly to intercollegiate athletes and the
intercollegiate athletes' certified NIL representatives; (2) additional funds to enhance scholarships,
athletic facilities, and academic resources without reducing intercollegiate athlete compensation; and
(3) reserved revenues for community outreach programs and institutional growth.
Authorizes institutions to implement a talent fee of no more than 10 percent of a ticket price to be
used to generate revenue for NIL activities, including athlete compensation, or to subsidize athletic
scholarships, facility upgrades, and athlete development programs; provided, these initiatives equally
benefit intercollegiate athletes across all sports.
Authorizes institutions to establish an NIL program at the high school level to educate prospective
intercollegiate athletes on NIL opportunities that comply with state and federal laws.
Requires the institutions to have mandatory financial literacy workshops for intercollegiate athletes
covering NIL contract negotiation, tax responsibilities, wealth management, and personal branding.
Requires the institutions to provide mentorship programs connecting intercollegiate athletes with
alumni and industry leaders to support NIL success. Requires institutions to document and report
on NIL activities annually to the General Assembly. Requires media networks operated by the
institutions or NIL collectives to: (1) showcase exclusive content to increase intercollegiate athlete
SB 1419 - HB 1386 2
exposure and fan engagement; (2) provide opportunities for intercollegiate athletes to co-create
content and share revenues, and; (3) include revenue-sharing agreements to ensure equitable benefits
for intercollegiate athletes, certified NIL representatives, and institutions.
Makes various other revenue NIL-related opportunities allowable under institutions including, but
not limited to, merchandise collaborations, and broadcast rights. Prohibits state regulatory bodies
from pursuing NIL investigations.
Establishes the statewide NIL oversight committee (Committee). Requires the Tennessee Higher
Education Commission (THEC) to appoint five members who have experience with NIL for
intercollegiate athletes in this state to the Committee. Requires the Committee to: (1) monitor the
implementation and impact of NIL activities; (2) publish annual reports on NIL revenues,
expenditures, and best practices, and; (3) resolve disputes related to NIL agreements.
FISCAL IMPACT:
STATE GOVERNMENT
EXPENDITURES
Tennessee Higher
Education
Commission
University
Tennessee College
System
Locally
Governed
Universities
FY25-26 & Subsequent
Years
$460,700 $181,500 $663,000
Total Positions Required: 12
OTHER FISCAL IMPACT
It is assumed that the various NIL activities, productions, and ventures authorized and encouraged
by the proposed legislation will result in a significant increase in state revenue to the public
institutions of higher education that pursue them in FY25-26 and subsequent years. Due to multiple
unknown variables, the precise extent and timing of such increases cannot be reasonably
determined.
Assumptions:
• Article 12 of the National Collegiate Athletic Association (NCAA) bylaws in 2020 stated
that a student-athlete was prohibited from being compensated for the use of his or her
name, image, or likeness, and from being represented by a sports agent.
• Effective July 1, 2021, the NCAA adopted an interim policy waiver that excuses compliance
with Article 12 of the NCAA bylaws until federal legislation or new NCAA rules were to be
adopted. The policy allowed individuals to engage in NIL activities in accordance with state
laws.
SB 1419 - HB 1386 3
• Public Chapter 400 of 2022, authorized an intercollegiate athlete to earn compensation for
the use of the athlete's NIL.
• Effective August 1, 2024, the new NCAA rules allow athletes to pursue NIL opportunities
without limitations imposed by the NCAA, conferences, or universities.
Locally Governed Institutions:
• Based on the information provided by five of the six locally governed institutions (LGIs)
each of the LGIs will need one Athletic Coordinator in order to:
o Provide mentorship programs connecting intercollegiate athletes with alumni and
industry leaders; and
o Provide documents and reporting on NIL activities and revenues annually to the
General Assembly.
• The recurring increase in state expenditures for the positions is as follows:
• Pursuant to Tenn. Code Ann. § 49-7-202, institutions must conduct a financial literacy
workshop for intercollegiate athletes during the athlete's first full-time term of enrollment.
The workshop must cover, at a minimum, information related to budgeting, and debt
management. An institution may contract with qualified persons or entities to conduct the
workshop.
• The proposed legislation increases what is covered under the financial literacy workshops
for intercollegiate athletes to include covering contract negotiation, tax responsibilities,
wealth management, and personal branding.
• Based on the information provided by some of the LGIs, this enhanced financial literacy
workshop would require an additional recurring cost of an estimated $50,000.
• The increase to LGIs is estimated to be $662,964 ($50,000 x 6 LGIs) + ($362,964 salary and
benefits) in FY25-26 and subsequent years.
University of Tennessee System:
• Based on the information provided by the University of Tennessee System (UT), UT would
need three Athletics Coordinator positions (one each at UT Martin, UT Chattanooga, and
UT Southern) in order to:
o Provide mentorship programs connecting intercollegiate athletes with alumni and
industry leaders; and
o Provide documents and reporting on NIL activities and revenues annually to the
General Assembly.
• The recurring increase in state expenditures for the positions is as follows:
Title Salary Benefits Positions Total
Athletic Coordinator $45,000 $15,494 3 $181,482
• UT provides that the current financial literacy workshop offered at the UT campus’ can be
enhanced to provide the required increased financial coverage within existing resources.
Title Salary Benefits Positions Total
Athletic Coordinator $45,000 $15,494 6 $362,964
SB 1419 - HB 1386 4
• The increase to UT is estimated to be $181,482 for salary and benefits in FY25-26 and
subsequent years
Tennessee Higher Education Commission:
• Based on information from THEC, establishing the statewide NIL oversight committee
cannot be done within existing resources.
• THEC will require three additional positions (two Attorney positions, and one
Administrative Assistant position) beginning in FY25-26.
• The recurring increase in state expenditures for the positions is as follows:
Title Salary Benefits Positions Total
Attorney $143,000 $31,752 2 $349,504
Administrative Assistant $79,000 $21,134 1 $100,134
Total: $449,638
• THEC will appoint 5 members to serve on the Committee. Such members are assumed to
receive no compensation for services but will be reimbursed for travel expenses. The
Committee is assumed to meet quarterly.
• The recurring increase in state expenditures for the Committee to meet is estimated to be:
Non-Legislative Member Reimbursement FY25-26 and subsequent years
Members Per Mtg Cost/Member Reimbursed Meetings/Yr
Mileage 5 $173 4 $3,460
Per Diem 5 $379 4 $7,580
Total: $11,040
• The increase in expenditures to THEC is estimated to be $460,678 ($11,040 meetings +
$449,638 positions) in FY25-26 and subsequent years.
Other Fiscal Impacts:
• The proposed legislation authorizes and encourages various NIL revenue-generating and
sharing opportunities and places some requirements on institutions related to those
activities.
• The expenditures involved in all of the NIL activities that institutions may pursue under
this legislation, and the subsequent revenue such activities will generate for institutions, is
not known and cannot be reasonably estimated.
• However, it is assumed that NIL activities, productions, and ventures will be profitable for
the various public and private institutions of higher education in this state. Such activities
are assumed to result in a significant increase in state revenue to the public institutions in
FY25-26 and subsequent years. Due to multiple unknown variables, the precise extent and
timing of such increases cannot be reasonably determined.
SB 1419 - HB 1386 5
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director