Committee advances bill allowing Arkansas universities to share revenue with student‑athletes under NCAA settlement

State Senator Barr Hester told the Senate Insurance and Commerce Committee that House Bill 1917 would implement changes prompted by a federal court settlement involving the NCAA and conferences, allowing public institutions to distribute a portion of certain revenues to student-athletes.

"This will allow our institution of a higher ed to be able to ultimately pay, athletes a revenue share, based on that settlement," said Shane Broadway of the Arkansas State University system during the committee hearing, and Brad Phelps, general counsel for the ASU system, described the bill as enabling universities to stay competitive under the settlement.

Sponsors and university representatives emphasized the bill is permissive and does not mandate a single statewide revenue-sharing formula. Senator Murdock and others noted the change responds to evolving litigation and practice in college athletics; Senator Johnson asked whether private third‑party deals would still be permitted. Witnesses said private agreements would continue but—under the settlement—a third‑party clearinghouse would evaluate certain arrangements and require reporting of contracts valued at $600 or more per agreement.

Senators discussed equity and how different institutions might implement revenue-share programs; Senator Murdock cautioned that differing university approaches could create new disputes. Supporters pointed to the need for state law to permit universities to accept and distribute shareable revenue from media, ticket sales, guarantees and private contributions without using state dollars. Committee members said the rev‑share portion would not be funded by the state and would rely on conference distributions, private revenues and institutional sources.

The committee moved and seconded the bill; senators approved it by voice vote.