This one’s pitched on a bipartisan basis — one conservative and two liberal senators — and its main feature is that it doesn’t try to do too much. There’s no blanket antitrust immunity in it, nor is there a move to make college athletes employees. It does give the schools the national regulation of NIL that they crave, but there’s a certain element of be careful what you wish for in it.
This time around, the senators propose creating a non-government-operated corporation with the power to settle NIL disputes, certify agents and enforce other reforms, which include:
Health care: Establish a medical trust fund for sport-related injuries. Athletic departments that generate at least $20 million annually would be required to cover out-of-pocket medical expenses for athletes for two years after they finish playing. Athletic departments that generate at least $50 million annually would have to do the same for four years and provide athletic-related health care coverage while athletes were playing.
Draft eligibility: All college athletes can enter drafts for professional leagues without losing their NCAA eligibility if they decide to return to school within seven days of the draft ending.
Scholarship guarantees: Colleges would have to guarantee athletes would keep their scholarships until they finish their undergraduate degrees as long as they remain in good academic standing and do not transfer to another school.
Education: Schools could not attempt to discourage athletes from choosing particular academic majors. They would also be required to provide athletes with at least 15 hours per year of financial literacy and life skills training that could count as college credits.
Transparency: Schools would be required to report annually on their athletics revenue and expenses, how much money their coaches make, how much time athletes spent on their sports, academic outcomes, and the average value and total number of endorsement contracts athletes sign. The bill would make sure that specific contract details for endorsement deals were not made public or subject to public records requests.
The new corporation, dubbed the College Athletic Corporation, would work with existing associations like the NCAA to police certain areas of college sports. This group would be granted subpoena power to monitor whether all parties were obeying the framework established in the proposed law.
No doubt the schools could live with some of that. But there’s a lot of nibbling around the edges in terms of reducing coaches’ control over players, not to mention forcing athletic departments to be truly transparent about their finances. And I bet that subpoena power is going to make certain institutions skittish.
That all being said, it still doesn’t feel like we’re at a time when DC is ready to resolve things on the NIL front. And this is just proposed legislation; it hasn’t even been formally introduced. So, we’re still in the wait and see mode. Let’s see what folks like Sankey have to say about it first.