S. 2470 — College Athlete Economic Freedom Act

This section defines 14 terms for purposes of the Act, including "(1) 'athlete agent' (as defined in section 2 of the Sports Agent Responsibility and Trust Act, 15 U.S.C. 7801); (2) 'collective representative' (i.e., an individual or organization, including athlete agents and players' associations, that represents college athletes in negotiating name, image, or likeness contracts); (3) 'college athlete'; (4) 'compensation'; (5) 'grant-in-aid'; (6) 'image'; (7) 'institution of higher education' (as defined in the Higher Education Act of 1965); (8) 'institutional name, image, and likeness collective' (i.e., entities that accept contributions to fund or arrange name, image, or likeness agreements for college athletes at specific institutions of higher education); (9) 'intercollegiate athletic association'; (10) 'international college athlete'; (11) 'likeness'; (12) 'name'; (13) 'prospective college athlete'; and (14) 'third party'."

This section establishes rights for college athletes and prospective college athletes to market their name, image, or likeness (NIL). Specifically, it (1) prohibits institutions of higher education and intercollegiate athletic associations from preventing such marketing or enacting related restrictions; (2) bars collusion among institutions or with third parties to limit NIL payments unless negotiated with a collective representative; (3) prohibits interference with athletes' formation or recognition of collective representatives for NIL contracts, group licensing, or representation; (4) requires institutions and associations to obtain a group license before using athletes' NIL for promotions (including media rights) and to notify the group of usage details and associated revenues; and (5) specifies that NIL compensation does not affect eligibility, amount, duration, or renewal of grants-in-aid. The section further requires equitable NIL support for all athletes regardless of gender, race, or sport; deems institutional NIL collectives affiliated with supported institutions and mandates their registration with, and annual reporting to, the Federal Trade Commission on disaggregated NIL agreement data; and directs that such support be considered in Title IX sex discrimination determinations. Finally, it prohibits preventing athletes' participation in intercollegiate athletics due to retaining professional representation for NIL contracts or legal matters.

This section authorizes the Secretary of Commerce to award grants, contracts, or cooperative agreements at least annually to eligible entities (i.e., U.S. businesses, public or private education and research organizations, or consortia thereof) to conduct market analyses of name, image, likeness, and athletic reputation monetization by college athletes and prospective college athletes under this Act during the preceding one-year period. Entities receiving such awards must publicly release the analyses—including surveys, interviews, and compensation estimates disaggregated by gender, race, and sport—and provide recommendations to the Secretary to address disparities, which the Secretary must make publicly available. The section authorizes appropriations of such sums as necessary.

This section amends the Immigration and Nationality Act (INA) to establish a new nonimmigrant classification under F visas for international college athletes (i.e., bona fide college athletes, as defined in sec. 2 of the College Athlete Economic Freedom Act, qualified for a full course of study at an SEVP-certified institution while participating in intercollegiate athletics, with the institution required to report status terminations to DHS). It further (1) exempts such athletes from inadmissibility under INA sec. 212(a)(5)(A) for prior name, image, or likeness (NIL) activities and provides that such activities do not violate F visa status; (2) authorizes DHS to permit NIL employment incident to F status, with an employment-authorized endorsement on Form I-20 (or equivalent); (3) clarifies that if courts or agencies deem college athletes employees, athletic participation and related pay do not violate F status; and (4) designates an endorsed Form I-20 as evidence of NIL employment eligibility. (Thus, international student-athletes may engage in NIL marketing without separate work authorization or status risks, aligning their rights with domestic athletes.)

This section establishes Federal Trade Commission (FTC) enforcement authority over violations of section 3—including against nonprofit organizations notwithstanding certain jurisdictional limitations in the FTC Act (15 U.S.C. 44, 45(a)(2), 46)—by treating such violations as unfair or deceptive acts or practices under FTC Act section 18(a)(1)(B) (15 U.S.C. 57a(a)(1)(B)) and subjecting violators to the same penalties, privileges, immunities, powers, and duties as under the FTC Act (15 U.S.C. 41 et seq.). It further authorizes affected individuals to bring civil actions in federal district court for actual damages, costs, and reasonable attorney's fees; and deems violations of this Act per se violations of the Sherman Act (15 U.S.C. 1 et seq.), subject to all remedies available thereunder.

This section preempts state laws regulating college athletes' ability to enter into third-party contracts for the use of their names, images, or likenesses (NIL). It permits states to enforce laws or regulations on athlete agent certification under the Sports Agent Responsibility and Trust Act.