Wisconsin Legislature Moves Forward with Funding for UW-Madison NIL Agreements
In a significant move, the Wisconsin Legislature’s budget committee approved a proposal to allocate over $14 million annually to the University of Wisconsin-Madison. This funding aims to support athletic facilities costs as the university compensates student athletes through “name, image, likeness” (NIL) deals.
The decision by the GOP-led Joint Finance Committee indicates that the measure might need Democratic support to pass in the Senate. The legislation, besides providing financial resources, seeks to regulate NIL agreements. This comes five years after college athletes were first allowed to profit from such deals. Notably, in 2024, a federal settlement empowered schools in certain athletic conferences, including the Big Ten, which UW-Madison is a part of, to pay student athletes. This has led to increased mobility among top athletes seeking better opportunities.
The approved budget includes $14.6 million annually to enable the Board of Regents to distribute funds to students involved in NIL agreements. Additionally, the committee’s decision grants $200,000 each for facility upgrades at UW-Milwaukee and UW-Green Bay.
The legislation also outlines that students receiving payments are not considered employees of the Universities of Wisconsin. It allows athletes to engage with their names and likenesses independently of team activities and employ agents, though it prohibits state funds from aiding students in securing or managing these deals. Furthermore, the specifics of these deals are exempt from open records laws.
Having already cleared the Assembly with substantial support and passed a Senate committee, the bill is poised for potential approval in the Senate next week. However, the recent 8-5 vote in the Joint Finance Committee, with three Senate Republicans opposing, highlights the need for Democratic backing to pass. Notably, the committee’s two Democratic senators also opposed the bill.
The proposal, co-sponsored by Senate Majority Leader Devin LeMahieu, R-Oostburg, faces an uncertain future if it hinges on minority party votes. A memo from the Legislative Fiscal Bureau reveals that the projected costs for UW-Madison’s facilities fall below $14.6 million, with any unused funds reverting to the state.
