What changed between these versions
A substantive revision. V2 introduces new provisions for NIL agreement transparency and state enforcement, mandates specific governance structures for athletic associations, and adds several reporting requirements. It also significantly modifies the criteria for institutions subject to certain requirements, refines agent regulations, and narrows the scope of federal preemption over state laws.
Overview
Extensive changes are present throughout the bill. · V2 expands student athlete protections and transparency requirements, adds new governance and reporting mandates, and clarifies and narrows certain aspects of federal preemption and antitrust immunity.
The reported version introduces new requirements for transparency in Name, Image, and Likeness (NIL) agreements and grants state attorneys general enforcement powers for these provisions. It also significantly alters the applicability criteria for institutional requirements, shifting from coach salary to institutional athletic revenue, and mandates specific governance reforms for interstate intercollegiate athletic associations. Furthermore, v2 refines agent regulations, clarifies the scope of federal preemption, and adds new reporting obligations for federal agencies and athletic associations.
Major additions
This new subsection establishes specific requirements for NIL agreements exceeding $600 to be considered valid, including being in writing, detailing services, parties, term, compensation, and termination clauses, and requiring student athlete signatures.
This introduces a new layer of consumer protection for student athletes in their NIL dealings by mandating clear, written terms for significant agreements, which can help prevent exploitation and ensure transparency.
This new subsection empowers State attorneys general to bring civil actions to enjoin violations of Section 3, enforce compliance, and obtain damages or restitution on behalf of state residents.
This creates a new enforcement mechanism at the state level for student athlete NIL rights, providing an additional layer of oversight and legal recourse for student athletes.
This new subsection adds a condition to program participation agreements under the Higher Education Act of 1965, requiring institutions described in Section 5(c) to comply with the institutional requirements outlined in Section 5(a).
This provides a federal financial aid-related enforcement lever for institutional compliance with the new requirements, potentially incentivizing adherence by linking it to access to federal student aid programs.
This new subsection imposes conditions on the authority granted to interstate intercollegiate athletic associations, requiring compliance with Section 6(b) and Section 3. It also mandates specific governance structures, including minimum representation for student athletes/former student athletes (20%) and non-top-70 earning institutions (30%) on decision-making bodies, and the establishment of a policy-developing council.
This introduces significant new oversight and structural requirements for athletic associations, aiming to make their governance more representative and accountable to student athletes and a broader range of member institutions.
This new section explicitly states that nothing in the Act or its amendments may be construed to limit or otherwise affect Title IX of the Education Amendments of 1972.
This addition provides a clear statement regarding the Act's relationship with existing civil rights law, ensuring that the new NIL framework does not inadvertently undermine gender equity protections in collegiate sports.
This new section introduces several new reporting requirements: a Federal Trade Commission study on agent certification, biennial compliance reports from interstate intercollegiate athletic associations, quinquennial compliance investigations and reports from the Comptroller General, and a Comptroller General study on the impact of the Act on Olympic Sports.
These additions create new oversight and information-gathering mechanisms, aiming to assess the Act's effectiveness, ensure compliance, and understand its broader impacts on collegiate sports, particularly Olympic Sports.
Deletions
This subparagraph detailed that the cost of attendance is 'calculated by the financial aid office of an institution applying the same standards, policies, and procedures for all students.'
Its deletion removes a specific procedural requirement for how institutions must calculate the cost of attendance, potentially giving institutions more flexibility or less explicit guidance in this area.
This broad clause in the preemption section stated that state laws 'is otherwise related to this Act' would be preempted.
Its deletion significantly narrows the scope of federal preemption, limiting it to specific areas of conflict rather than a general relation to the Act, thereby preserving more state legislative authority.
This subsection provided a separate effective date for the restrictions on student fees for high-media-rights-revenue institutions.
Its deletion means the effective date for this provision is now integrated into the modified Section 10(b)(2), streamlining the legislative text but removing a distinct effective date clause.
Modifications
This modification broadens the revenue base used to calculate the 'pool limit' for student athlete compensation, potentially increasing the total amount available for student athletes at institutions.
Before
Included 'any additional form of revenue an interstate intercollegiate athletic association uses with respect to the pool limit.'
After
Includes 'any additional form of revenue, including fundraising, an interstate intercollegiate athletic association uses with respect to the pool limit.'
This change significantly narrows the scope of institutions covered by the Act. Section 101 is a broad definition, while Section 102 specifically refers to proprietary institutions, postsecondary vocational institutions, and institutions outside the U.S., potentially excluding many traditional non-profit higher education institutions from the Act's purview.
Before
Defined 'institution' by referencing section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001).
After
Defines 'institution' by referencing section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002).
This modification broadens the definition of an interstate intercollegiate athletic association, potentially allowing international or non-U.S. incorporated entities to fall under the Act's purview if they meet other specified criteria.
Before
Defined an interstate intercollegiate athletic association as 'any entity incorporated in the United States' that meets certain criteria.
After
Defined an interstate intercollegiate athletic association as 'any entity' that meets certain criteria.
This modification ensures broader privacy protection for all information related to NIL agreements, not just information directly disclosed by the student athlete, and requires consent from any student athlete involved in the agreement, enhancing student athlete privacy.
Before
Prohibited release of 'information disclosed to such entity by a student athlete with respect to a name, image, and likeness agreement' without consent.
After
Prohibits release of 'information with respect to a name, image, and likeness agreement' without the express written consent of 'any student athlete who is a party to such agreement.'
This significantly enhances protections for student athletes in their dealings with agents by limiting agent fees and providing a clear exit mechanism from agency contracts, potentially reducing financial exploitation and increasing flexibility for student athletes.
Before
Amended the Sports Agent Responsibility and Trust Act (SARTA) Section 3(b)(3) to change a warning to a notice regarding eligibility.
After
In addition to the change in SARTA Section 3(b)(3), V2 also amends SARTA Section 3(a) by adding new paragraphs (2) and (3). These new provisions cap agent fees for endorsement contracts at 5% of the student athlete's compensation and require agency contracts to include a clause allowing student athletes to terminate the contract 6 months after they are no longer enrolled at an institution.
Institutions are no longer directly responsible for providing legal advice on NIL or tax services, but must facilitate access to external providers. This could alter the nature of support student athletes receive, potentially ensuring more independent advice. The addition of 'consequences' to sexual violence prevention broadens the educational scope.
Before
Required academic support programs to include 'name, image, and likeness rights, including related legal advice' and 'financial literacy, including taxes,' and 'sexual violence prevention.'
After
Requires programs to include 'name, image, and likeness rights;' 'access to legal and tax services provided by entities other than an institution;' and 'financial literacy;' and 'sexual violence prevention and consequences.'
This modification provides a more structured and potentially more accessible pathway for former student athletes to complete their degrees, while also introducing accountability measures related to academic performance and conduct. It also limits the duration of assistance to 7 years.
Before
Required a degree completion program for former student athletes who received a grant-in-aid and did not graduate, providing financial aid based on their average annual grant-in-aid.
After
Redesigned this as 'degree completion assistance' with detailed eligibility criteria (e.g., student athlete on/after enactment, not received bachelor's, last institution attended), a defined period of assistance (up to 7 years), and specific prohibitions for receiving aid (academic progress failure, code of conduct violation).
This explicitly links the maintenance of varsity sports teams to Title IX compliance for a subset of institutions, reinforcing gender equity considerations in athletic program offerings.
Before
Required institutions to establish and maintain at least 16 varsity sports teams by July 1, 2027.
After
Added a clause requiring institutions receiving Federal financial assistance to establish and maintain such teams 'in accordance with section 106.41(c) of title 34, Code of Federal Regulations (or successor regulations).'
This shifts the burden of compliance from institutions with highly paid coaches to those with significant athletic revenue. This could expand or narrow the number of covered institutions depending on their financial structure and coaching salaries, likely impacting larger, revenue-generating athletic programs more directly.
Before
Applied Section 5 requirements to institutions where any coach earned more than $250,000 in base salary annually.
After
Applies Section 5 requirements to institutions that generated not less than $20,000,000 in total revenue from intercollegiate athletics activities during the preceding academic year.
Ensures that the aggregated data provides a more comprehensive picture of NIL activity, including agreements made directly between student athletes and third parties without institutional involvement, leading to more complete data for analysis.
Before
Authorized associations to collect and publicly share aggregated and anonymized data related to NIL agreements of student athletes.
After
Clarified that data collection should be '(without regard to whether such an agreement includes an institution as a party to the agreement)'.
While maintaining the one-time immediate transfer right, this ensures that student athletes must still meet academic standards at the new institution to participate, potentially preventing transfers solely for athletic gain without academic readiness.
Before
Provided that on at least one occasion, each student athlete may transfer between institutions and be immediately eligible.
After
Added the condition '(if academically eligible to participate)' to immediate eligibility upon transfer.
This provides a more robust framework for regulating agents, potentially increasing transparency and accountability through a database and clear qualification standards, further protecting student athletes.
Before
Authorized associations to establish and implement a process for agent registration, including parameters for negotiation with unregistered agents and a 5% fee limit.
After
Expanded this to include 'a database' for agent registration and explicitly listed sub-points for 'setting qualifications to be registered as an agent' and 'setting parameters for the ability of member institutions to negotiate with agents who are not registered under such process.' The 5% fee limit was retained.
The antitrust immunity is now specifically tied to rules established under Section 6 (roles of athletic associations), rather than the entire Act. The new rule of construction clarifies that this immunity does not override other general laws, potentially limiting the blanket protection from antitrust challenges compared to v1.
Before
Stated that compliance with 'this Act' and its provisions would be treated as lawful under antitrust laws.
After
Stated that compliance with 'section 6 of this Act' (rules established by athletic associations) would be treated as lawful under antitrust laws, and added a new subsection (b) clarifying that this does not limit other federal or state law.
This change provides institutions with a longer look-back period for revenue calculation, potentially smoothing out year-to-year fluctuations, and grants a significant delay (from July 1, 2026, to AY 2028-2029) before the student fee restriction takes effect, giving institutions more time to adjust their financial models.
Before
Prohibited institutions with $50M+ annual media rights revenue in the most recently completed fiscal year from using student fees to support athletic programs in the *immediately following* fiscal year.
After
Prohibited institutions with $50M+ average annual media rights revenue (averaged over the *second and third preceding academic years*) from using student fees to support athletic programs, with the restriction beginning in *academic year 2028-2029*.
This modification significantly reduces the breadth of federal preemption, allowing state laws that do not directly conflict with the Act to remain in effect. It provides more clarity on specific areas where federal law will supersede state law, particularly regarding eligibility rules.
Before
Broadly preempted state laws that 'governs or regulates the compensation, payment, benefits, employment status, or eligibility' of student athletes, 'limits or restricts a right provided to an institution,' 'requires a release of or license to use NIL rights,' or 'is otherwise related to this Act.'
After
Preempted state laws that 'conflicts with this Act' and that 'governs or regulates the compensation, payment, benefits, or employment status' (with specific sub-clauses for NIL rights and eligibility length/academic standards), 'limits or restricts a right provided to an institution,' or 'requires a release of or license to use NIL rights.' It removed the broad 'otherwise related to this Act' clause.
Scope
Meaningful expansion or narrowing — Changes are scattered throughout the bill, affecting definitions, student athlete rights, institutional obligations, athletic association governance, antitrust immunity, student fees, preemption, and adding new reporting requirements. — V2 represents a meaningful refinement and expansion of policy within the existing direction of protecting student athlete NIL rights and regulating intercollegiate athletics. It strengthens student athlete protections in some areas (transparency, agent regulation) while also providing more detailed regulatory frameworks for institutions and athletic associations. The narrowing of preemption and antitrust immunity also indicates a more nuanced approach to federal oversight. — The changes interact significantly with existing provisions. For example, the change in the 'institution' definition (Section 2(10)) affects all subsequent sections that refer to 'institution.' The new governance requirements for athletic associations (Section 6(b)) directly condition their rule-making authority. The refined preemption clause (Section 11) alters the interplay between federal and state laws.
Impact analysis
Student athletes (specifically regarding NIL agreements and agent representation)
Gains. Student athletes gain increased legal protections, financial safeguards, and avenues for redress in their NIL activities and agent relationships.
New requirements for NIL agreement transparency (Section 3(d)) and state attorney general enforcement (Section 3(e)) are added. Agent fee caps (5%) and contract termination rights (Section 4) are also introduced.
Interstate intercollegiate athletic associations
Procedural change and potential loss of broad immunity. They face increased regulatory burden and potentially reduced legal protection from antitrust challenges.
New governance structure requirements are imposed (Section 6(b)), including mandated representation for student athletes and non-top-70 earning institutions on decision-making bodies, and the establishment of a policy council. Their antitrust immunity is also narrowed (Section 8).
Institutions of higher education (specifically those subject to Section 5 requirements)
Procedural change and potential increase/shift in compliance burden. Some institutions previously covered may no longer be, and vice-versa, impacting their support programs and financial planning.
The criteria for applicability of Section 5 requirements shifts from coach salary to institutional athletic revenue ($20M+ revenue threshold, Section 5(c)). They must also provide access to external legal/tax services instead of direct advice (Section 5(a)(1)). Degree completion assistance is more structured (Section 5(a)(4)).
State governments and their residents
Gains. States gain increased power to protect their residents and greater autonomy in regulating intercollegiate athletics within their borders.
State attorneys general gain new authority to enforce Section 3 violations (Section 3(e)). The scope of federal preemption over state laws is narrowed (Section 11), allowing more state laws to coexist with federal law unless there's a direct conflict.
Institutions with high media rights revenue (>$50M)
Gains. These institutions gain more time and flexibility in managing their finances related to student fees, allowing for better long-term planning.
The restriction on using student fees to support athletic programs is delayed (to AY 2028-2029) and the revenue calculation method is changed to a 2-3 year average (Section 10(b)(2)).
Types of institutions covered by the Act's definition of 'institution'
Narrows. The scope of the Act's applicability is narrowed, potentially excluding many traditional non-profit universities and colleges that were covered under the broader Section 101 definition.
The definition of 'institution' changes from referencing HEA Section 101 to HEA Section 102 (Section 2(10)).