College Athlete NIL Bill Grants Federal Rights, Protects Scholarships, and Mandates Financial Transparency

The “College Athlete Economic Freedom Act” is essentially a federal bill of rights for college athletes looking to make money off their Name, Image, and Likeness (NIL). Simply put, the bill gives current and future college athletes the clear, federally protected right to sign endorsement deals and monetize their personal brand without their university or athletic association getting in the way.

The Green Light for NIL Earnings

This is the core of the bill: it explicitly bans schools and athletic associations from setting rules that stop athletes from earning compensation through NIL deals (SEC. 3). For the busy student athlete, this means they can hire an agent, lawyer, or financial advisor for their NIL contracts without fear of losing their eligibility. Even better, the bill offers a crucial protection: any money earned from NIL deals cannot be used to reduce, cancel, or otherwise affect an athlete’s grant-in-aid or scholarship (SEC. 3). So, if a star quarterback signs a big sponsorship deal, the school can’t turn around and cut their tuition scholarship because they’re now earning outside income.

New Rules for the NIL Middlemen

Since the NIL landscape exploded, groups called “Institutional NIL Collectives” have popped up to pool money and arrange deals for athletes connected to a specific school. This bill brings those collectives under federal scrutiny. Any collective supporting a school must register with the Federal Trade Commission (FTC) and, starting next year, submit detailed annual reports (SEC. 3). These reports must break down the total number and dollar amount of deals, and how many athletes benefited—all categorized by gender, race, and sport. The goal here is transparency: to spot and fix any potential unfair differences in earnings among male, female, minority, or non-revenue sport athletes (SEC. 4).

A Path for International Athletes

For international students on F-1 visas, NIL has been a complex headache, often conflicting with visa rules that restrict employment. This bill creates a new, specific F visa category for international college athletes (SEC. 5). If they enter the U.S. under this new category, participating in NIL activities will not violate their student status. In fact, the Department of Homeland Security must automatically authorize these students to work on NIL activities. This is a huge change, ensuring that a star international basketball player can participate in the same NIL deals as their American teammates without jeopardizing their ability to stay in the country (SEC. 5).

Federal Enforcement and Antitrust Power

This bill has teeth. Violating the athlete rights section (SEC. 3) is treated as an unfair business practice under the FTC Act, giving the FTC broad power to investigate and penalize non-compliant schools or collectives (SEC. 6). But the enforcement goes further: any violation is automatically considered a “per se” violation of the Sherman Antitrust Act. This means a violation is illegal right away, opening the door to serious antitrust remedies. Plus, if an athlete is harmed by a violation, they can sue the offending party in federal court to recover their losses and attorney fees. This combination of FTC oversight and private right of action creates a strong deterrent against institutional interference.

Where State Laws Stand

This federal law mostly preempts—or overrides—state laws that might try to restrict an athlete’s ability to sign a NIL deal (SEC. 7). However, states still get to keep their own laws regarding the licensing and certification of athlete agents. So, while a state can’t stop an athlete from getting paid, it can still enforce rules ensuring the agent they hire is properly regulated.