WASHINGTON (Reuters) — American college athletes can now make big money from endorsements while still playing for their schools. The U.S. Congress is moving to put national rules around that rapidly changing system.
The Senate voted 77-22 to approve legislation regulating transfers, eligibility and athletes’ earnings from their name, image and likeness, commonly known as NIL.
The bill now goes to the House of Representatives.
For Filipino sports fans, the proposal covers a system very different from collegiate leagues such as the UAAP and NCAA in the Philippines.
U.S. college sports, particularly American football and basketball, generate billions of dollars in revenue. For decades, athletes were largely prohibited from earning money tied to their fame while retaining their eligibility to compete.
That has changed dramatically.
College athletes can now sign endorsement and sponsorship deals, promote products on social media and receive other payments for the commercial use of their name, image and likeness.
Here are five things to know about the proposed new rules.
1. Athletes get one free transfer
College athletes would be allowed to transfer to another school once without losing or delaying their eligibility to play.
A second transfer would generally mean sitting out for one year.
There would be exceptions, including when a head coach leaves, an athlete experiences sexual assault or harassment, or a school drops the athlete’s sport.
The provision attempts to put national rules around the increasingly active transfer market, where star athletes can switch schools during their college careers.
2. Athletes generally get five years to compete
The bill would generally limit athletes to five years of eligibility.
Exceptions would be allowed for pregnancy, religious missions, active-duty military service and serious injuries or medical conditions.
3. Athletes can keep earning endorsement money
The legislation would protect athletes’ right to earn money from NIL deals.
That means a college basketball or football star could continue being paid to endorse a shoe, appear in an advertisement or promote a brand without automatically losing eligibility.
NIL deals worth more than $600 would have to be disclosed.
4. Washington would replace a patchwork of state rules
More than 30 U.S. states already have their own NIL laws.
The Senate proposal would establish one national standard that would override conflicting state rules governing transfers, eligibility and NIL compensation.
Supporters say a nationwide system would provide clearer rules for schools and athletes competing across state lines.
Critics worry federal rules could reduce protections or bargaining power athletes have gained under some state laws.
5. One huge question remains: Are college athletes employees?
The bill does not settle perhaps the biggest legal issue hanging over American college sports: whether athletes should eventually be considered employees of their universities.
Employee status could potentially give athletes broader labor rights, including the ability to organize and collectively bargain over compensation and working conditions.
The legislation would allow athletes to sue to enforce protections under the bill and would void agreements requiring disputes to go to arbitration before they arise.
Some Democrats said individual athletes may not have the time, money or legal expertise needed to take schools or athletic programs to court.
Senator Lisa Blunt Rochester of Delaware also warned against adopting rules that could restrict athletes’ ability to negotiate or collectively bargain in the future.
The bill nevertheless won broad bipartisan support.
Fifty Republicans and 27 members of the Democratic caucus voted for it.
Its future is not yet certain.
The House has recessed until after the November 3 midterm elections. A majority would have to approve the legislation before it could go to President Donald Trump to be signed into law.
