Senators introduce bipartisan bill to regulate NIL in college sports

Senators Richard Blumenthal (D-Conn.), Jerry Moran (R-Kan.), and Cory Booker (D-NJ) have released a draft of federal legislation to regulate NIL across college sports. The drafted bipartisan bill called the College Athletes Protection & Compensation Act, aims to preempt state NIL laws with universal standards. 

The bill proposes the formation of the College Athletics Corporation (CAC) to enforce NIL rules, lead investigations, and give punishments for schools that violate rules. The CAC would consist of 15 board of directors, one-third of which must be current athletes or those who played in the previous 10 years, according to Yahoo Sports. The drafted federal act comes shortly after SEC Commissioner Greg Stankey said he was against state-by-state NIL laws.

College athletes would be allowed to hire agents under the drafted bill, and an athlete who no longer participates in their sport while having a NIL deal of more than a year can rescind it without being held liable for breach of contract. Athletes making more than $1,000 per year must disclose their endorsement contracts to a designated university employee, and recruits must also share copies of their NIL contracts before signing their national letter of intent. 

Under the proposed act, underclassmen who enter a draft but go undrafted can maintain their college eligibility if they apply to return to school within seven days and don’t receive compensation from a sports league, team, or agent.

Athletes would also receive lifetime college scholarships and medical care through the establishment of a medical trust fund. The bill proposes that schools making $20 million in annual athletic revenue must cover athlete medical expenses for at least two years after their final competition. Schools making at least $50 million must cover expenses for four years and contribute annually to the medical fund. 

The drafted College Athletes Protection & Compensation Act does not address the status of student-athletes being considered employees, a hot-button issue that has drawn complaints from the National Labor Relations Board. Under the drafted bill, the NCAA would maintain its amateurism model, and college athletes would continue not to be considered employees of their schools.