A slew of new federal bills has been introduced with the aim of establishing consistency in the marketplace for athletes' monetization of their name, image, and likeness (NIL). Currently, NIL operates under a patchwork of state laws, with limited overarching rules and guidelines from the NCAA. Recent state laws even prohibit the NCAA from enforcing its NIL regulations.
Despite the introduction of nearly a dozen federal bills in the past few years, none have progressed beyond the committee stage. The latest round of bills presents various provisions, highlighting the absence of a consensus on what a federal NIL standard should entail.
Here, we delve into three bills introduced in 2023 and a draft bill open for discussion.
College Athlete Economic Freedom Act
Sen. Chris Murphy (D-Conn.) and Rep. Lori Trahan (D-Mass.) reintroduced the College Athlete Economic Freedom Act, originally proposed in February 2021. The 2023 version incorporates new provisions addressing issues that have emerged during the implementation of NIL over the past two years.
International Student Athletes
This legislation includes a unique provision allowing international college athletes to fully exploit their NIL without violating their F-1 student visa status. Additionally, it safeguards international student athletes in case they are deemed employees.
Revenue Sharing
Notably, the bill mandates universities and conferences to obtain a group license from athletes for using their NIL in promotions. Athletes must be informed of how their NIL is utilized and the revenue generated, empowering them to negotiate a share of the earnings. This echoes California's proposed bill advocating for revenue sharing with athletes.
Additional Provisions
Other key aspects of the College Athlete Economic Freedom Act include:
- Unrestricted rights for college athletes to market their NIL without interference from the NCAA, conferences, or universities.
- Freedom for athletes to retain representation from attorneys, agents, collectives, and players' associations.
- Mandatory registration of collectives with the Federal Trade Commission (FTC) to prevent discrimination based on gender, race, or sport.
- Penalties for the NCAA, conferences, or universities for non-compliance, including antitrust penalties and civil claims by athletes.
UCLA quarterback Chase Griffin endorses the bill, emphasizing the economic freedoms NIL has provided to college athletes.
The Protecting Athletes, Schools, and Sports Act of 2023
Introduced by Sens. Tommy Tuberville (R-Ala.) and Joe Manchin (D-W. Va.), this act contrasts with the College Athlete Economic Freedom Act by incorporating specific protections for universities, with limitations on NIL activities and restrictions on transferring.
Protections for Higher Education Institutions
This legislation relieves liability for the NCAA, conferences, and institutions and prohibits NIL deals involving alcohol, drugs, or conflicts with school and conference licenses. It also prohibits inducements to attend or transfer to a particular institution.
Transparency of NIL Activities
The bill mandates agents and collectives to register, and all NIL deals must be disclosed within 30 days on a public-facing website. The FTC is involved for reporting violations.
Limitation on Transferring
A distinctive provision restricts transferring without penalty until an athlete completes their first three years of athletic eligibility.
Health and Safety
The legislation includes provisions for guaranteed health insurance for sports-related injuries and coverage of out-of-pocket expenses for institutions with significant athletics revenue.
Student Athlete Level Playing Field Act
Reps. Mike Carey (R-OH-15) and Greg Landsman (D-OH-1) reintroduced this act, emphasizing FTC involvement, prohibiting recruiting inducements, ensuring athletes are not considered employees, and establishing a uniform standard contract for NIL deals.
Additional Provisions
Other provisions include:
- Athletes enrolling in school before entering into an NIL deal with a booster.
- Preemption of state laws regarding NIL.
- Creation of the Covered Athlete Organization Commission for dispute resolution.
College Athletes Protection and Compensation Act of 2023
Sens. Richard Blumenthal (D-Conn.), Jerry Moran (R-Kan.), and Cory Booker (D-N.J.) proposed this bipartisan act, addressing NIL, health and safety, and introducing a central oversight entity called the College Athletics Corporation.
Health and Safety
The act creates a Medical Trust Fund, ensures coverage of tuition and fees until graduation, and establishes health and safety standards.
Additional Provisions
Other notable provisions include:
- Reporting of revenues and expenditures by schools.
- Mandatory financial literacy education for athletes.
- Equal access for male and female athletes during tournaments.
The fate of these bills and their backers in gaining support for committee approval and subsequent voting remains uncertain, especially with Congress heading into recess in August. The outcome will likely take some time to unfold.
