The University of Hawaiʻi failed to get support from the state Legislature this year to pay and recruit college athletes, but officials believe it’s an “investment” that benefits the state.
The university asked lawmakers for $5 million and a framework for a “name, image and likeness” program through Senate Bill 3263.
A class-action settlement last year allowed student-athletes in the U.S. to be paid for the use of their personal branding. Dozens of states have since created NIL laws.
But the Hawaiʻi measure was voted down during its final reading of the legislative session, following concerns about spending taxpayer money on out-of-state students during a tight budget year. A dozen state senators voted against SB 3263, while 11 voted in favor of it.
It's an understandable criticism, UH Director of Athletics Matt Elliott said. But he argued that money will help create jobs and improve tourism spending.
“I think that's part of next year's story, as well as more specifics around job creation and tax dollars that are generated by investing in athletics. The economic model is really important for people to understand, and we can do more to explain that,” Elliott said.
One recent example, Elliott noted, is UH’s participation in the Hawaiʻi Bowl in December. The university’s football team qualified for and was invited to the postseason bowl game because its record was good enough during the regular season.
UH played against the University of California, Berkeley, and rallied to win after being down 21 points.
Elliott said 15,000 tickets to the game were sold, and 3,000 of them were sold to visitors who don’t live in Hawaiʻi. He also said those visitors spent $7 million in the state in the days surrounding the game.
“It is a very worthwhile investment, and … is going to come back to the state in a way that is going to be beneficial and substantial,” he said.
State lawmakers have discussed the economic impact of sports-related tourism in Hawaiʻi and have shown interest in taking advantage of it.
While NIL rules and funding will be brought up again during next year’s Legislative session, UH will have to raise the $5 million it asked from legislators on its own to meet its immediate needs. Elliott said that’s how much has already been committed to the 500 or so student-athletes at UH during the next fiscal year.
This year, the university system spent $3 million for its athletes without state help.
Elliott said NIL rules and funding from the state “creates stability within athletics.” The rise of those programs across the country means that student-athletes are likely considering how much they will get paid when deciding which school to attend.
“ We don't have the money that some of these other schools have. But if we create a really amazing student-athlete experience and we supplement that with dollars to help enhance their scholarship, then the NIL allows us, I think … to retain students at a much higher frequency,” Elliott said.
But if another year goes by without state help, he said UH rosters will see more students leave for the 2027-2028 school year.
