WASHINGTON — A massive bill aimed at regulating how the NCAA compensates student-athletes and standardizing rules for name, image and likeness contracts has hit a roadblock in Congress and could be delayed until next year as details are ironed out.
The House was scheduled to vote on the Students Compensation and Opportunity Through Rights and Recognition (SCORE Act) earlier this week, but the bill was removed from the list hours before the scheduled vote. The bill was defeated amid growing opposition among rank-and-file Republicans, who argued that questions about how to implement the regulations remained unanswered.
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“There are some members who have some questions and want to know more about the bill,” Majority Leader Steve Scalise, R-Louisiana, told reporters Thursday. “So we will take our time to ensure that we can finalize a coalition government.”
The proposed bill would codify rules established in last year’s multibillion-dollar settlement that expanded how student-athletes are paid while clarifying certain provisions that supporters say are critical to preventing loopholes.
The SCORE Act would guarantee the right of students to sign name, image and likeness contracts, also known as NIL agreements, without restrictions from schools or athletic organizations. The bill would enact law at the national level, effectively superseding individual state NIL laws so that all conferences are held to the same standards.
The bill has the backing of the NCAA and support from the White House and the U.S. Olympic Organization.
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The bill is opposed by most congressional Democrats, meaning Republicans will need to unite to get it passed in the House. However, earlier this week, a small faction of House Republicans came out against the framework, prompting leaders to remove it from the weekly schedule.
“I just don’t think it’s ready for prime time yet and there are some lingering issues that we’re trying to work through,” said Rep. Chip Roy, R-Texas, who staged an insurrection on the House floor earlier this week.
How did we get here?
The legal battle over how student-athletes should be compensated for their talents has raged for years. But things really started to heat up in 2021 after the Supreme Court ruled in NCAA v. Alston that the NCAA unfairly profited from zero contracts for college athletes.
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At the time, the NCAA placed certain limits on the non-cash compensation (such as internships) that student-athletes could receive, deeming it necessary to prevent the emergence of “pay-to-play” programs, or student-athletes being treated as professionals.
The Supreme Court upheld a lower court’s ruling that the restrictions violated antitrust laws, paving the way for major changes in how college athletes are compensated.
States are beginning to pass laws regulating NIL contracts that will allow students to benefit from their name, image, and likeness. That prompted the NCAA to change its stance and allow athletes to begin signing NIL contracts and endorsement deals without violating conference rules.
As more college athletes benefit from their visibility and recognition, advocates are challenging the NCAA’s other restrictions on how students can receive media rights and other benefits. This leads to a major settlement in 2024 as part of House v. NCAA case, The bill would allow each school to pay athletes up to $20.5 million per year, equivalent to about 22 percent of the average revenue of a Power Four school’s athletic department.
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What would this bill do?
The SCORE Act essentially codifies these changes into law and implements them nationwide.
The bill would clarify that student-athletes are not considered employees of any school or athletic association, which would provide colleges with legal protections while ensuring students are fairly compensated.
If schools classified athletes as employees, they would be required to set rules such as minimum wages for practices and games; health care benefits and insurance; and overtime policies — guidelines that would be too complex and costly for schools to maintain.
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It would also allow schools to maintain the tradition of college sports being viewed as “amateur competitions” rather than professional employment.
The SCORE Act would require schools to provide academic and career counseling and mental health services to student-athletes. Under the bill, athletes would receive health coverage for injury-related expenses for up to three years after graduation, and students would be entitled to scholarships regardless of injury or NIL activity.
Why do lawmakers oppose these changes?
While the initial bill had some bipartisan support, top congressional Democratic leaders this week urged rank-and-file lawmakers to oppose the bill over concerns it still gave the NCAA too much power.
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With the NCAA and universities gaining some protections that allow conferences to control salaries, rules and athlete eligibility without legal challenge, some opponents believe it could create a monopoly structure that allows the largest sports programs to sway decision-making.
Opponents also worry that national standards would give the NCAA too much control, rather than allowing individual states to handle NIL contract issues. Doing so, they argue, could deprive athletes of stronger protections.
But some lawmakers objected to the framework simply because they believed it was hastily drafted and that Congress should be focusing on more pressing legislation before the end of the year.
Rep. Anna Paulina Luna, R-Fla., said she had not yet decided on the bill, telling The Associated Press it was not “our top issue right now.”
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What happens next?
Congress is only scheduled to meet for two more weeks before recessing for the holidays, making it likely that the SCORE Act will be delayed until the new year.
That’s increasingly likely as Congress needs to focus on passing some kind of health care bill to prevent some of the enhanced Obamacare subsidies from expiring at the end of the year. If these measures fail, millions of Americans could see their health insurance premiums rise.
Appropriators are also scrambling to strike a spending deal before the end of the year to get a head start on completing the annual budget before next month’s January 30 deadline.
Meanwhile, the House has a lengthy to-do list filled with bills that have been shelved after a seven-week recess during the government shutdown.
