The potential passing of Alabama House Bill 489 could usher in Name, Image, and Likeness (NIL) opportunities for high school athletes in the Yellowhammer State.
As reported by Mary Claire Wooten of the Alabama Political Reporter, a state House committee is set to deliberate on whether high school athletes should be eligible to earn compensation through their name, image, and likeness (NIL). A public hearing is planned for today at 12:30 p.m. in Montgomery, Alabama.
Wooten notes that Alabama state representative Jeremy Gray previously introduced a bill similar to House Bill 489 last year, aiming to bring NIL to Alabama. This time, there seems to be increased momentum, with several states across the nation having adopted NIL legislation.
House Bill 489 was introduced on April 1st, 2025, and today it will be considered by Alabama’s Economic Development and Tourism department. If the committee approves it, the legislation could be enacted by October 1st, 2025. Below is the text of House Bill 489 along with a link to the bill:
HOUSE BILL 489
Relating to high school athletics; to allow student
athletes to receive compensation for the use of their name,
image, or likeness; and to provide requirements for
compensating student athletes for the use of their name,
image, or likeness.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. (a) For the purposes of this section, the
following terms have the following meanings:
(1) ATHLETIC ACTIVITY. The term as defined in Section
16-30D-2, Code of Alabama 1975.
(2) COMPENSATION. Any monetary or in-kind payment to a
student athlete.
(3) SCHOOL. Any public or nonpublic K-12 school in this
state.
(4) STUDENT ATHLETE. A student who is enrolled in a
school and participates in any athletic activity.
(b) No student athlete in this state shall be prevented
from receiving compensation for the use of his or her name,
image, or likeness.
(c) The receipt of compensation by a student athlete
for the use of his or her name, image, or likeness shall be
subject to all of the following requirements:
(1) Compensation may not be:
a. Contingent on specific athletic performance or
achievement.
b. Provided as an incentive to enroll or remain
enrolled at a specific school.
c. Provided by any school or any individual acting as
an agent for a school.
(2) None of the following may be used, worn, or
endorsed in relation to a student athlete receiving
compensation for the use of his or her name, image, or
likeness:
a. Marks, including a school logo, school name, school
mascot, or trademarked logo or acronym of an athletic
association.
b. School apparel or equipment, including a school
uniform or any apparel displaying a trademarked logo or
acronym of an athletic association.
c. A school facility.
d. Activities in conflict with a school’s policies,
including the use of tobacco products, alcohol products, or
controlled substances.
(3) Prior to receiving compensation as authorized by
this section, a student athlete and a parent or legal guardian
of the student athlete shall receive professional guidance as
to the potential impacts and consequences of receiving the
compensation, including collegiate financial aid and tax
implications.
(4) A student athlete may not receive compensation as
permitted in this section unless the student athlete or a
parent or legal guardian of the student athlete first notifies
the principal or athletic director of the student athlete’s
school that the student athlete intends to enter into any type
of name, image, or likeness contract or agreement no less than
seven days prior to entering into the contract or agreement.
Section 2. This act shall become effective on October
1, 2025.
Last year, neighboring states like Florida and Georgia successfully enacted NIL legislation, leaving just nine states in the nation yet to follow suit.
Alabama stands among the nine states in the U.S. that have yet to approve NIL arrangements for student athletes. Other notable states without NIL legislation include Indiana, Mississippi, Texas, and West Virginia.
States that have not approved some form of Name, Image, Likeness (NIL) for high school sports:
- Alabama
- Hawaii
- Indiana
- Mississippi
- Missouri
- Montana
- South Dakota
- Texas
- West Virginia
