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SEC and Big Ten agree to support college sports bill after negotiations

Created at 1 Aug · 2:06 AM1 source↑ Market-relevant
IN SHORT

The Senate Commerce Committee has altered language in a college sports bill to address concerns from the SEC and Big Ten conferences regarding revenue-sharing loopholes. This development could pave the way for the bill's consideration in the Senate.

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Key Numbers

60vote threshold for bill passage

Who's Involved

John Thune
Majority Leader, potentially teeing up bill for fall action
Ted Cruz
Commerce Chair, hoping for bill action before August recess
John Hickenlooper
Senator (D-Colo.), believes bill is closer to passage than perceived
SEC
Southeastern Conference, agreed to support bill after language changes
Big Ten
Athletic conference, agreed to support bill after language changes
Commerce Committee
Senate committee that agreed to alter bill language

↳ Why This Matters

This legislative development could significantly reshape the landscape of college sports by establishing new rules for revenue sharing, NIL opportunities, and athlete eligibility, impacting universities, conferences, and student-athletes nationwide.

Key facts

  • The Senate Commerce Committee has modified a college sports bill to address concerns from the SEC and Big Ten conferences.
  • The changes focus on closing a loophole that could allow schools to exceed revenue-sharing caps through associated entities.
  • The updated legislation aims to ensure a single revenue-share cap for all programs and protect third-party NIL opportunities for athletes.
  • The bill also includes provisions for stronger enforcement, expanded NIL disclosure requirements, and revised eligibility and transfer rules.
  • The Senate Commerce Committee has agreed to revise language in a college sports bill, a move that could potentially clear the path for its consideration in the Senate before the August recess. This development follows weeks of negotiations and an "about-face" by the SEC and Big Ten conferences, who had previously expressed concerns about a loophole allowing schools to exceed revenue-sharing caps through "associated entities" such as multimedia rights partners and corporate sponsors.

    Senator John Hickenlooper indicated that the bill is closer to passage than many believe, citing significant movement on key aspects. The committee acknowledged the conferences' concerns in an email, stating that the bill's current language aligns with their proposed provisions. The staffer emphasized that the legislation would not establish separate systems for different programs or deny student athletes opportunities for third-party commercial name, image, and likeness (NIL) deals.

    The Commerce Committee shared updated text with the conferences after the SEC and Big Ten missed a prior deadline. The latest version of the legislation reportedly strengthens enforcement mechanisms for "associated entities," tightens rules for athlete-agent contracts, expands NIL disclosure requirements, and includes carveouts for eligibility and transfer rules, all aimed at securing broader support.

    Frequently asked questions

    They were concerned about a loophole in the bill that could allow schools to exceed revenue-sharing caps by routing compensation through "associated entities" like multimedia rights partners and corporate sponsors.

    The language was altered to strengthen enforcement of rules around "associated entities," tighten rules for athlete-agent contracts, expand NIL disclosure requirements, and add carveouts to eligibility and transfer rules.

    This loophole could allow some programs to effectively bypass revenue-sharing caps by using external groups for compensation, creating an uneven playing field.

    It is unclear if the Senate floor calendar will allow quick action, and the bill will need to secure 60 votes to pass, though some senators believe it is closer to passage than perceived.

    What Happens Next

    01The bill may be teed up for action on the Senate floor.
    02Senate floor calendar will determine the speed of action.
    03The bill will need to clear the 60-vote threshold for passage.

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    Cadence

    How It Developed

    The Senate Commerce Committee agreed to alter language in a college sports bill.
    The changes address concerns about a loophole allowing schools to exceed revenue-share caps via associated entities.
    The SEC and Big Ten conferences previously stated the bill's language on this loophole was insufficient.
    A committee staffer confirmed the updated language aligns with proposals from the conferences.
    The committee shared updated text with conferences after the SEC and Big Ten missed a previous deadline.
    The latest version strengthens enforcement for associated entities and tightens rules for agents and NIL disclosures.
    The bill also includes carveouts for eligibility and transfer rules.

    Sources

    T1
    SEC and Big Ten agree to support college sports bill after weeks of negotiationsPolitico

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