Student-athlete Protections and Opportunities through Rights, Transparency, and Safety Act

Bill Number

H.R. 3847

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Sports and Recreation

Status

Introduced

Latest Action

2025-06-09: Referred to the Committee on Education and Workforce, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Last Updated

2025-07-21T19:44:15Z

AI-Generated Summary

Purpose of the Legislation

The SPORTS Act aims to protect the name, image, and likeness (NIL) rights of college student athletes, allowing them to enter commercial agreements using their personal brand without losing athletic eligibility. It establishes federal standards for transparency, fair market valuation, agent representation, and institutional responsibilities, while ensuring student athletes are not classified as employees. The goal is to promote opportunities, safety, and equity in intercollegiate athletics.

Key Provisions

• Definitions (Section 2): Provides clear meanings for key terms, such as "compensation" (payments for NIL use, excluding scholarships, health insurance, or fair wages for non-athletic work), "student athlete" (enrolled student on a varsity team), "NIL agreement" (contract for commercial use of a student's name, image, or likeness), and "third party" (anyone licensing NIL rights, excluding schools or associations).

• Protection of NIL Rights (Section 3):
• Student athletes can freely enter NIL agreements unless they violate school conduct codes, harm the institution's reputation, or conflict with existing contracts.
• Institutions, conferences, or athletic associations cannot penalize athletes for obtaining NIL representation (e.g., from agents).
• Athletes must disclose agreement details to their school within 60 days; schools cannot share this without consent.
• NIL agreements must be written, detailing services, parties, duration, payment, and termination conditions for non-performance; otherwise, they are void.

• Modifications to Sports Agent Responsibility and Trust Act (Section 4):
• Removes outdated warnings in agent contracts about losing eligibility for NIL deals.
• Requires agents to disclose registration status with athletic associations; unregistered agents need written consent from the athlete (or parent/guardian if under 18).

• Roles of Conferences and Athletic Associations (Section 5):
• National associations (e.g., NCAA-like entities) must create a registration process for NIL agents and maintain a public database for estimating fair NIL market value (based on Section 6 data).
• Allows associations to set rules on athlete recruitment timing, transfers (including bans on inducement payments), provide NIL education, organize events, and enforce membership bylaws (e.g., suspending non-compliant schools or athletes).

• NIL Market Value Determination (Section 6):
• Starting one year after enactment, schools must annually report anonymized NIL agreement data (services and compensation) to their national association.
• Associations use this to build a searchable public database for fair value estimates, protecting athlete privacy by avoiding identifiable information.

• Eligibility for Department of Education Funding (Section 7):
• Applies one year after enactment; non-compliant schools lose federal education funding.
• Schools must provide grant-aided athletes with training on career prep, finances, mental health, NIL, nutrition, sexual violence prevention, strength training, and transfers.
• Covers medical costs for sport-related injuries for 4 years after leaving school.
• Athletic scholarships cannot be reduced or canceled due to performance, injury, illness, or roster changes; they extend up to 10 years for degree completion, even if the athlete stops playing.

• Limitation on Liability (Section 8): Shields schools, conferences, and associations from lawsuits if they follow the Act, including for rules limiting direct compensation from schools or restricting ineligible athletes.

• Preemption (Section 9): Overrides conflicting state or local laws on athlete compensation, employment status, eligibility, or NIL use in college sports. Explicitly states student athletes are not employees of schools or associations based on sports participation.

Significant Changes to Existing Law

• Amends Sports Agent Act: Updates agent disclosure rules to align with NIL rights, eliminating eligibility-loss warnings that conflicted with modern practices.
• Introduces Federal Framework: Creates uniform national rules for NIL, replacing patchwork state laws (e.g., varying state NIL statutes post-2021 NCAA policy shift). Ties compliance to federal funding, a new leverage mechanism absent in prior law.
• Non-Employee Clarification: Codifies that college athletes are not employees for labor purposes, preventing classification under wage or union laws (e.g., NLRB challenges).
• Enhanced Protections: Mandates long-term scholarships, injury coverage, and education—expanding beyond current NCAA rules, which lack federal enforcement.

Potential Impacts

• On Citizens (Student Athletes): Enables earning from endorsements (e.g., ads, sponsorships) without eligibility risks, provides better health/financial support, and offers tools for fair deals via databases. Could increase equity, especially for underrepresented athletes, but requires disclosures that might limit privacy.
• On Government Agencies: The Department of Education gains enforcement power through funding conditions and rulemaking authority (under standard federal procedures). No direct impact on international relations, as it focuses on U.S. intercollegiate sports.
• On Institutions and Associations: Schools face compliance costs (e.g., training, reporting, medical payments) but gain liability protection and preemption clarity. Could standardize operations, reducing legal uncertainties, but penalizes non-compliance via funding loss.
• Broader Effects: Promotes safer, more transparent college sports; may reduce exploitative deals by requiring written contracts and market data, potentially shifting revenue dynamics away from schools toward athletes.

Main Stakeholders Affected

• Student Athletes: Primary beneficiaries with rights to NIL income and protections like extended scholarships and injury care.
• Institutions of Higher Education: Must implement training, reporting, and benefits; risk funding cuts if non-compliant.
• Conferences and Interstate Athletic Associations (e.g., NCAA, Big Ten): Responsible for registration, databases, and rule-making; gain authority to enforce standards.
• Sports Agents and Third Parties: Face new registration/disclosure rules, enabling legitimate NIL representation.
• Department of Education: Oversees funding eligibility and issues regulations.
• States and Local Governments: Lose authority over conflicting NIL/athlete laws due to preemption.

Notable Legal, Constitutional, or Political Implications

• Legal: Preemption clause may invalidate existing state NIL laws, leading to lawsuits over federal overreach; non-employee status avoids minimum wage or antitrust claims but could face challenges if athletes seek worker protections. Liability limits reduce litigation risks for entities.
• Constitutional: Relies on Congress's commerce power to regulate interstate athletics; potential First Amendment issues if NIL restrictions are seen as speech limits, though the Act promotes free commercial use.
• Political: Addresses growing calls for athlete compensation amid high-revenue college sports (e.g., TV deals), balancing institutional control with individual rights. Could influence future debates on pay-for-play or unionization, fostering bipartisanship on education/sports equity without direct athlete salaries from schools.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. McClain, Lisa C. [R-MI-9]

Cosponsors (1)

Rep. Bynum, Janelle S. [D-OR-5]

Recent Actions

• 2025-06-09: Referred to the Committee on Education and Workforce, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-06-09: Referred to the Committee on Education and Workforce, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-06-09: Introduced in House
• 2025-06-09: Introduced in House

Bill Versions

• Student-athlete Protections and Opportunities through Rights, Transparency, and Safety Act — issued 2025-06-09 — PDF (19 pages)