CMT Hearing: Winning Off the Field: Legislative Proposal to Stabilize NIL and College Athletics

Commerce, Trade and Consumer Protection

2025-06-12

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Source: Congress.gov

Summary

A legislative hearing was convened to discuss the future of Name, Image, and Likeness (NIL) in college athletics, focusing on the proposed SCORE Act discussion draft and its implications following the recent House v. NCAA settlement.[ 00:21:36 ] Witnesses presented diverse perspectives on the need for federal intervention, athlete welfare, and the balance between athletic and academic pursuits.

Themes

The SCORE Act and Federal Regulation

The SCORE Act is presented as a comprehensive solution to establish a national standard, provide stability with reasonable guardrails, and ensure support for athletes through benefits like scholarship protections and financial literacy programs. Proponents argue that federal legislation is crucial for bringing clarity and stability to the NIL arena, especially after the House litigation settlement, by codifying key elements like revenue sharing and reasonable NIL regulation that state laws cannot achieve.[ 00:30:58-00:31:02 ]

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 A uniform national standard is seen as necessary to preempt conflicting state laws, which have created a "wild west" environment, and to provide clearer rules for student-athletes nationwide. However, critics view the SCORE Act as a partisan bill crafted without sufficient input, designed to protect college athletic power brokers at the expense of athletes.[ 00:25:17-00:25:27 ]

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 It is also criticized for potentially stifling progress made by athletes and for giving excessive power back to the NCAA by limiting athlete rights and collective bargaining.

Student-Athlete Welfare, Health, and Academic Integrity

A significant concern raised is the lack of enforcement of health and safety standards for student-athletes, with calls for mandatory third-party enforcement of protocols like concussion and heat illness prevention, given the NCAA's perceived failure to enforce its own guidelines. The SCORE Act is criticized for not adequately addressing these critical health and safety issues. The current unlimited transfer portal system is seen as academically and athletically destabilizing, as frequent transfers can hinder graduation rates and lead to loss of academic credits. While the SCORE Act aims to provide stability to the transfer portal, potentially through a one-time unrestricted transfer rule, it also includes codifying scholarship protections and post-eligibility degree completion to offer students greater assurance.[ 00:57:58-00:57:59 ]

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Athlete Employee Status and Representation

Many stakeholders, including the SEC and student-athletes from non-revenue sports, advocate for affirming the non-employee status of athletes, arguing that employee status would be financially devastating for most institutions and could eliminate many Olympic and non-revenue sports. Conversely, opponents of the SCORE Act argue that it would prevent unionization and collective bargaining by excluding college athletes from equal rights under labor law. Proponents of athlete empowerment emphasize that athletes should have the option to organize and collectively bargain to protect their interests, similar to professional athletes.

NIL Regulation and Agent Oversight

There is broad consensus on the need for meaningful regulation of NIL agents to combat unscrupulous practices, predatory contracts, and unfair agent activity.[ 01:06:53-01:06:59 ]

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 While the SCORE Act proposes agent registration, concerns remain about the effectiveness of existing discipline mechanisms and the need for independent certification programs to ensure athlete protection. The act also introduces requirements for disclosing NIL deals over $600 and aggregated data sharing, aiming for transparency in fair market value and compliance for schools, while committing to protect athlete privacy.[ 02:06:26-02:06:27 ]

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[ 02:07:31-02:08:18 ]

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Impact on Non-Revenue Sports and Smaller Institutions

A key theme is the importance of protecting Olympic and non-revenue sports, which are often financially dependent on major revenue-generating sports and could be severely impacted by changes like an employee model or significant financial imbalances. Concerns were voiced that national NIL policies could disproportionately benefit Power Five programs, thereby marginalizing smaller conferences and institutions due to inherent disparities in budgets and resources. The House settlement's elimination of scholarship limits and introduction of roster limits for all sports are seen as potentially beneficial, allowing more athletes to receive scholarships and protecting designated student-athletes from losing roster spots.

Tone of the Meeting

The meeting's tone was largely contentious and divided, particularly regarding the proposed SCORE Act, with strong disagreements on its potential impact on student-athlete rights and the future of college sports.[ 00:25:17-00:25:27 ]

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 While some speakers emphasized the need for stability, clarity, and the benefits of federal regulation, others highlighted concerns about athlete exploitation, the partisan nature of the bill, and limitations on athlete empowerment. Despite these divisions, there was a shared recognition of the transformative moment in college athletics and the importance of addressing the complex issues at hand.

Participants

Transcript

Thank you.   Thank you.
will come to order.  The chairman recognizes himself for five minutes for an opening statement.
Good morning, everyone, and welcome to our legislative hearing on name, image, likeness in college athletics.  I want to thank our witnesses for being here today.  Your experience and insight are critical as we navigate what is arguably one of the most transformative moments in the history of college sports.   In recent years, we've seen a dramatic shift in college athletes engaging in their sports, their schools, and their personal brands.  The recent House versus NCAA settlement represents more than just a court decision.  It marks a fundamental change in how college athletics will operate going forward.   The timing couldn't be more appropriate for legislative action, in my opinion.  That's why I'm leading the SCORE Act, the Student Compensation and Opportunity through Rights and Endorsements Act, a comprehensive common sense discussion draft that reflects months of dialogue with student athletes, athletic directors, conference leaders, and the NCAA.   This is not just another proposal.  It's a targeted solution designed to bring predictability, fairness, and long-term balance to a system that has rapidly evolved without structure.  The SCORE Act is built around three core principles.  Clarity, by establishing a national standard that replaces the current patchwork of state laws.   Stability by setting reasonable guardrails around the transfer portal and NIL deals to protect both athletes and programs.  And support by ensuring benefits like scholarship protections and financial literacy programs are not optional but expected.
For far too long, student athletes have operated in a gray area, empowered in some ways, but exposed in others.  The current model lacks the transparency and consistency that both athletes and institutions need.   The SCORE Act brings that balance, in my opinion.  And while today's hearing is just the beginning of a broader tri-committee process with the committees on judiciary and education and workforce, so the two committees, it's an important step.  So three committees total, including this one, ANSI, and the best committee in Congress, by the way.   We're not here to micromanage college sports.  We are here to put forward a framework that strengthens it, that ensures athletes can succeed on the field without losing sight of their future off of it.  I'm proud of the work this subcommittee has done on this issue, and I look forward to working with my colleagues on both sides of the aisle to get this across the finish line.  Oh, and by the way, it's great to be a Florida Gator.
All right, so the chairman now recognizes the ranking member, Ms.  Schakowsky, for five minutes for her opening statement.
Thank you, Mr. Chairman.  I'm happy to be here today, and in part, I believe that there is a role for the Congress   but not necessarily the one that we're looking at today.  And I am looking forward to working on it further and hearing the testimony on what we really need to make sure, for me, the health and welfare of the students is the most important thing, but we have a real   expert among us, and all of the someone who's been involved in sports, all of her growing life.  And I wanted to yield now to Congresswoman Trahan.  And also, after that, if she would, if she would deal to Congresswoman Kelly.  Oh, Clark, I'm sorry, Clark, of course.
Thank you.   I want to thank the ranking member for yielding.  I'm deeply disappointed for the second year in a row, Republicans on the committee are advancing a partisan college sports bill that protects the power brokers of college athletics at the expense of the athletes themselves.  This legislation was crafted behind closed doors with no input from democratic members on the energy and commerce committee.   the Judiciary Committee, or the Education and Workforce Committee.  In fact, we didn't see a draft of this bill until late last week, not because our Republican colleagues shared it with us, but because lobbyists and the members of the media got it first.  I'm a former D1 athlete, and I'm deeply   I care deeply about the future of college sports so that when I asked the chairman about the rumored hearing today, he said he'd be happy to discuss the proposal with me beforehand.  Sadly, that meeting never happened.  What makes this all the more frustrating is that there is bipartisan agreement on serious problems in college sports that deserve congressional action.   International athletes are being denied the same NIL rights as their teammates.  Women are being left out of roster spots due to Title IX loopholes.  We could be working together on solutions.

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