Legislation Aims To Standardize NIL Rules

On June 9, H.R. 3847, the bipartisan Student-Athlete Protections and Opportunities Through Rights, Transparency, and Safety Act (College SPORTS Act) was introduced in the U.S. House of Representatives. The bill is a significant development in the federal regulation of NIL rights for student-athletes by establishing a national framework for NIL activity while protecting student-athletes from exploitative practices and controversial employment classifications.

Background

The landscape of collegiate athletics has changed dramatically since the National Collegiate Athletic Association began allowing student-athletes to monetize their NIL in 2021. With states enacting divergent NIL laws and litigation threatening the traditional amateur status of student-athletes, the need for a cohesive federal approach has become increasingly urgent. The College SPORTS Act addresses these developments by creating a nationwide standard for NIL activity that includes transparency requirements, student-athlete protections, and clarity about employment classification.

Key provisions

The bill includes a multifaceted regulatory framework with the following core elements:

• Student-athletes would have the right to earn compensation from the use of their NIL, overriding conflicting state laws and prohibiting institutions and college conferences from penalizing student-athletes or schools for NIL activity.
• Schools would be required to fund post-injury medical care for student-athletes for four years.
• Schools would be prohibited from canceling or reducing scholarships based on athletic performance, injury, or roster management and would be required to honor scholarships for up to 10 years if students leave school early to pursue other opportunities.
• Division I, II, and III schools participating in a Division I sport would be required to provide training on a variety of topics, including mental health, sexual violence prevention, nutrition, career preparation, and student-athlete NIL rights.
• Schools would be required to disclose student-athlete NIL agreements to interstate intercollegiate athletic associations. The associations would be required to monitor the parties’ compliance with the agreements and protect student-athletes’ rights.
• The bill establishes safeguards against predatory contracts, sets requirements for NIL agreements, establishes agent disclosure and registration requirements, and requires schools to provide education on these matters to student-athletes.
• The bill affirms that participation in an NIL arrangement does not, by itself, create an employer-employee relationship between student-athletes and their institutions.

Crowe observation

The College SPORTS Act is more comprehensive than H.R. 2688, the Protecting Student Athletes’ Economic Freedom Act of 2025, which was introduced earlier this year and focused narrowly on preventing federal and state labor laws from designating current and former student-athletes as employees based solely on their participation in an NIL arrangement.

Looking ahead

The bipartisan nature of the College SPORTS Act might improve its chances of gaining traction in Congress. If enacted, the College SPORTS Act would streamline NIL regulation across all states, reduce institutional risk by clarifying NIL arrangements are not an employer-employee relationship, and offer greater security and clarity to student-athletes navigating commercial opportunities. Stakeholders should follow the bill’s progress closely and work with their advisers to evaluate how its provisions could affect current institutional policies and athlete support programs. Given that this is the second bill on NIL introduced this year, universities and athletic programs should prepare for potential changes in NIL policy by reviewing contract protocols and consider developing resources to provide advisory assistance to student-athletes.