College Athlete Economic Freedom Act

Full Title:
College Athlete Economic Freedom Act

Summary#

This bill creates clear federal rights for college athletes and prospective college athletes to market their name, image, and likeness (NIL). It says schools and athletic associations cannot stop athletes from making deals to use their NIL. Schools cannot coordinate with other schools or third parties to cap payments unless that cap comes from negotiations with a collective representative.

The bill protects the right of athletes to form or use collective representatives (like agents or players' groups) to negotiate group or individual NIL agreements. Schools and athletic associations must get a license before using a group of athletes' NIL for promotions or media deals and must tell the athletes how the NIL will be used and how much revenue the school or association will get from that use. Getting paid for NIL will not hurt an athlete's eligibility for scholarships or change scholarship terms.

The bill requires institutions, conferences, and related groups that help athletes market their NIL to make that help available to all athletes in the program without discrimination by gender, race, or sport. Entities called "institutional name, image, and likeness collectives" must register with the Federal Trade Commission (FTC), keep yearly records about deals and payments (broken down by gender, race, and sport), and file annual reports with the FTC.

Athletes may hire agents, lawyers, and financial advisors and may not be kept from playing because they have representation. Schools and athletic associations may not regulate or certify that representation.

The bill makes most attempts to waive these federal NIL rights invalid, except for restrictions that come from a collective bargaining agreement between schools or associations and athletes.

It creates a grant program run by the Secretary of Commerce to study NIL market activity and requires public reports and recommendations, including analyses broken down by gender, race, and sport. The Commerce Secretary may award grants and the bill authorizes appropriations to carry out that work.

The bill changes immigration law so certain international athletes can qualify for F student visas while participating in intercollegiate athletics, and it says those international athletes may engage in NIL activities and be authorized for that employment. It also says that if a court or agency finds athletes are employees, that status will not cause visa problems for international athletes and they may be paid like other athletes.

Enforcement: Violations of the NIL rules are treated as unfair or deceptive acts under the FTC Act and the FTC will enforce the rules. The bill allows private lawsuits by people harmed by violations, including recovery of actual damages and attorney fees. It also says violations are per se violations of the Sherman Antitrust Act. States may not enforce state laws that limit athletes' ability to contract for NIL, but states can still enforce laws about certifying athlete agents.

Finally, the bill says it does not change how qualified scholarships are treated for federal tax purposes.

What it means for you#

  • College athletes and recruits: You may negotiate and receive payments for your name, image, and likeness. You may hire agents or lawyers and still play. NIL earnings should not reduce your scholarship eligibility or change scholarship terms.
  • Institutions and athletic associations: You may not block athletes from marketing their NIL, must obtain licenses to use groups of athletes for promotions, and must not coordinate caps on payments unless negotiated with athlete collectives.
  • International student-athletes: Certain international athletes can hold F student status while competing and can be authorized to do NIL work in the U.S.
  • Third parties and collectives: Groups that help arrange NIL deals for schools must register with the FTC and report deal and payment data disaggregated by gender, race, and sport.
  • Legal and enforcement: The FTC enforces the bill's rules, private parties can sue over violations, and the bill treats violations as antitrust offenses.

Expenses#

No publicly available information on total federal costs or budget estimates. The bill authorizes the Secretary of Commerce to award grants for market analysis and authorizes "such sums as may be necessary" for that work, but it does not list dollar amounts. The bill also gives enforcement roles to the FTC and allows private litigation; it does not provide cost estimates for enforcement or litigation.

Proponents' View#

No publicly available information.

Opponents' View#

No publicly available information.