Peterson told FOXSports.com on Thursday that Manziel and other players should be allowed to make money off their own name.
"I think so," Peterson told FOXSports.com. "The universities are making a lot of money off of student-athletes in general. So, yeah, he should be able to make money. I think so. They make millions off of these college athletes and they made millions off of the guys I played with as well. Yeah, he should be getting paid."
Texas A&M University System chancellor John Sharp also said he believes college athletes should be allowed to earn money.
"I also think that there's something, you know this is just me talking not as chancellor of the system, something is wrong with the system when we can make money off of our football players, the NCAA make money off of our football players and they can't be treated like Olympic athletes," Sharp said in an interview with NBC 5's Chris Van Horne on Thursday.
Manziel, who became the first freshman to win the Heisman last year, is being investigated by the NCAA. ESPN has reported it is for possibly receiving payment from memorabilia brokers for signing autographs in Florida, Connecticut and Texas this year. If he is found to have been paid for signing, it could compromise his amateur status and put his eligibility at risk.
Peterson, a three-year standout at Oklahoma from 2004-06, said he doesn't see any issue with Manziel profiting off his own name.
"I think if you are in a position to where people want to pay you for your autographs or signatures, then you should be able to do that," Peterson told FOXSports.com. "He's a young man and he should be able to sign his name on a helmet or wherever without it being an issue."
Information from The Associated Press was used in this report.