(1) An institution or an association shall not prohibit a student-athlete from lawfully earning compensation through a name, image, and likeness agreement with a third party or from obtaining an athlete agent and shall not penalize an athlete for doing so.
(2) An institution shall not revoke a student-athlete’s scholarship or allow eligibility for a scholarship to be adversely impacted because of an athlete lawfully earning compensation through an NIL agreement or obtaining an athlete agent, unless the athlete has violated a reasonable restriction imposed by the institution under KRS § 164.6947. However, a student-athlete’s need-based financial assistance or an academic scholarship based in part on financial need may be affected by the income generated by an NIL agreement.

Terms Used In Kentucky Statutes 164.6943

  • Institution: means a university, college, community college, health technology center, vocational-technical school, technical institute, technical college, technology center, or the Kentucky Community and Technical College System. See Kentucky Statutes 164.001

(3) An association shall not prohibit an institution from participating in intercollegiate athletics due to an institution’s student-athlete lawfully earning compensation through an NIL agreement with a third party or obtaining an athlete agent and shall not penalize an institution for its student-athlete doing so.
Effective:March 9, 2022
History: Created 2022 Ky. Acts ch. 12, sec. 2, effective March 9, 2022.