New college sports legislation is causing quite a stir among members of Congress and the time to get vital legislation governing the growing economics of the name, image and likeness (NIL) system in college sports is running out.
The legislation, put forward by Rep. Gus Bilirakis (R-FL), is under tight time constraints ahead of the 2024 presidential election cycle when bills usually bog down due to focus on the race for the White House.
The main focus of this legislation is on regulating the rules surrounding the fundraising involved within the growing NIL landscape. It requires NIL fundraising groups to reveal information about their donors or potentially face charges of perjury. To oversee this process, a new organization called the United States Intercollegiate Athletic Committee (USIAC) will be established.
Before entering into NIL agreements with athletes, the legislation stipulates these groups must wait for the college athletes to be enrolled in school for at least 90 days. This provision aims to prevent premature deals and any attempts to influence athletes from other teams. Additionally, the proposed draft suggests creating a publicly accessible database that contains details about NIL agreements in college sports.
What is the FAIR Act?
The FAIR College Sports Act, as it is known, outlines several requirements that aim to streamline the involvement of groups and third parties in college sports. Registration with the USIAC is mandatory for NIL collectives and they must disclose a comprehensive list of donors. Furthermore, the act introduces rules that prohibit agents from formalizing agreements with athletes until they have been enrolled in their respective institutions for at least 45 days.
One of the aims of the new law is to promote more transparency and impose ethical standards on agreements and on the collectives who oversee fundraising for these NIL funds. It also provides for a system for the public to report any violations of NIL agreements. It gives colleges and universities the authority to prevent athletes from associating with organizations that are involved in gambling, tobacco, alcohol or other sectors that go against the religious beliefs of the institution. However, these same schools are not allowed to engage with such entities either.
To enforce the rules established in the FAIR College Sports Act, a 21-member USIAC would be created and given the authority to approve agents, and third parties and groups involved in the NIL process through a formal application process. The proposed structure would mean organizations like the NCAA and other college athletic governing bodies can create rules that would ensure they line up with the new law and give them the power to enforce those rules.
To ensure supervision, a 21 member USIAC will be established and given the responsibility of approving agents, third parties and groups through a systematic registration process. This structure will empower organizations like NCAA and other conferences to create rules that align with the law and enforce them accordingly.
Athletes and institutions that break these rules may also face penalties. The law is also designed to safeguard both the USIAC and the Federal Trade Commission against any issues, or legal liability, that may arise during enforcement.
Political wrangling, presidential politics could derail NIL bill
In the realm of politics this bill is gaining support among college leaders and within the Republican-led House of Representatives, where Bilirakis holds a position of influence. However, it is considered a bill that may face opposition from Democrats who prefer a broader approach when it comes to regulating matters concerning college athletes.
In the midst of discussions, several lawmakers, including Senator Ted Cruz (R-Texas) and a bipartisan group consisting of Senators Jerry Moran (R-KS), Richard Blumenthal (D-CT) and Cory Booker (D-NJ), have either introduced their own versions of bills related to NIL rules or are actively working on them. This creates a environment where progress and consensus on the NIL issue have proven difficult to achieve despite multiple hearings and proposals over the past four years.
The upcoming presidential election season adds urgency for all stakeholders who want to quicken the process. The next month will be crucial for advancements in this area. One of the biggest obstacles lies in differing opinions between Republicans and Democrats regarding the scope and intricacies of legislation for college athletes. Republicans advocate for a framework that focuses on NCAA protections while Democrats push for a comprehensive approach that grants athletes greater freedoms.
The issue will rise to the top of Congressional interest as the body convenes and discusses a vital piece that could determine the very future of college athletics.