HR 4868119th CongressIn Committee

College Athlete Economic Freedom Act

Introduced: Aug 1, 2025

Sponsor: Rep. Trahan, Lori [D-MA-3] (D-Massachusetts)

Economy & TaxesLabor & Employment

Standard Summary

Comprehensive overview in 1-2 paragraphs

The College Athlete Economic Freedom Act would create a comprehensive federal framework granting college athletes explicit rights to market their name, image, and likeness (NIL). It would bar institutions and intercollegiate associations from blocking or colluding to cap NIL compensation, protect athletes’ rights to engage legal or professional representation, and require governance around group licensing and the use of athletes’ NIL. The bill also creates a federal regulatory and enforcement structure (via the FTC) for NIL collectives, requires annual reporting on NIL activity, and authorizes grants to study monetization and potential disparities. In addition, the bill adds immigration provisions to accommodate international athletes (F-1 nonimmigrant status) and their NIL activities, including employment authorization related to NIL. It would preempt state NIL laws, with limited exceptions for athlete-agent certification, and treats violations as Sherman Act per se violations, enabling private actions and FTC enforcement. In short, if enacted, this bill would federalize NIL rights for college athletes, promote group licensing and collective representation, expand oversight and data reporting through the FTC, provide funding for monetization analyses, and create new immigration-related pathways tied to NIL activities for international athletes.

Key Points

1Right to market NIL and protections against restrictions and collusion
2- Institutions and intercollegiate associations may not prohibit athletes from marketing their names, images, or likenesses, and may not collude to limit payments except through negotiations with a collective representative.
3- Athletes may form or join collective representatives (including legal representatives, athlete agents, and players’ associations) to negotiate contracts for NIL use.
4- Group licensing rules require institutions to obtain licenses from groups when using the group’s NIL for promotions or media rights.
5Equitable support and transparency for NIL collectives
6- Collectives must register with the Federal Trade Commission (FTC) and disclose affiliations with institutions.
7- Collectives must track and report disaggregated data (by gender, race, sport) on NIL agreements and athletes assisted, and annually report to the FTC.
8- Prohibits discrimination based on gender, race, or sport in facilitating NIL opportunities within a program.
9- For purposes of Title IX discrimination analyses, support related to NIL is considered in evaluating gender-equity issues.
10Athlete representation and restrictions on waivers
11- Athletes may retain professional representation (agent, financial advisor, collective representative, or attorney) without being barred from participation in intercollegiate athletics.
12- Institutions may not regulate or certify the representation of athletes in NIL matters, though they may regulate collective bargaining in the form of a collective bargaining agreement.
13Grants to study NIL monetization
14- The Secretary of Commerce may award annual grants to eligible entities (including businesses or education/research organizations) to analyze NIL monetization and related compensation.
15- Analyses must be public, include methodology (surveys/interviews), and disaggregate compensation estimates by gender, race, and sport.
16- The Secretary must receive and publish recommendations to address any disparities found in the analysis.
17International college athletes and immigration implications
18- Amends immigration law to allow bona fide foreign college athletes to enter the U.S. temporarily for study and intercollegiate athletics, with reporting requirements and potential withdrawal of approval if reports are not timely.
19- International athletes would not be inadmissible solely for NIL activities and would be allowed to engage in NIL marketing while in the U.S.
20- Employment authorization would be extended to NIL activities for these international athletes.
21- If athletes are treated as employees by any court or agency, NIL participation would not jeopardize their nonimmigrant status and they could be paid in a manner similar to other student-athletes.
22Enforcement and preemption
23- Violations of NIL rights would be treated as unfair or deceptive acts under FTC authority, with the FTC enforcing related provisions and non-profit entities also subject to enforcement.
24- There would be a private right of action for individuals harmed by violations, with potential damages and attorney’s fees.
25- Violations would be treated as per se Sherman Act violations, enabling traditional antitrust remedies.
26- States could not enforce their own NIL laws if they conflict with the federal act, except for certification of athlete agents under the Sports Agent Responsibility and Trust Act (SARRT).

Impact Areas

Primary group/area affected- College athletes and prospective college athletes: explicit rights to market their NIL, ability to obtain representation, and protections against restrictive practices.- Institutions of higher education and intercollegiate athletic associations: new rules on NIL restrictions, group licensing, licensing requirements, and potential compliance obligations; and implications for media rights and revenue-sharing practices.- Institutional NIL collectives: required FTC registration, data reporting, nondiscrimination protections, and licensing processes.Secondary group/area affected- Athlete agents, legal representatives, and players’ associations: expanded role as recognized collective representatives; potential licensing and regulatory considerations.- Federal Trade Commission and enforcement ecosystem: new ground for regulation, reporting requirements, and antitrust implications.- International college athletes and immigration system: new eligibility and employment authorization tied to NIL activities.Additional impacts- Data transparency and equity: mandated public data on NIL activity could inform policy debates about gender, race, and sport disparities.- Potential antitrust and constitutional considerations: per se Sherman Act treatment and antitrust risk for group licensing, revenue-sharing arrangements, or anti-competitive practices.- State NIL laws: federal preemption would limit or override state-level NIL regimes, shaping the regulatory landscape nationwide.The bill’s status is introduced in the 119th Congress and names the act the College Athlete Economic Freedom Act.Sponsor is listed as unknown; the bill has been referred to multiple committees for consideration.Provisions include a broad set of definitions (e.g., “collective representative,” “institutional NIL collective,” “group licensing,” “image,” “likeness”) to anchor the NIL framework and enforcement mechanisms.

Generated by gpt-5-nano on Oct 8, 2025