Moving the Goalposts: How NIL is Reshaping College Athletics

Education and Workforce MarkupsHouse Energy and Commerce Subcommittee on Commerce, Manufacturing, and Trade · 2025-03-04 · 119th Congress
The House Energy and Commerce Subcommittee on Commerce, Manufacturing, and Trade held this hearing (March 4, 2025) to examine how name, image, and likeness (NIL) compensation, the transfer portal, and the pending House v. Begins at 0:12:50
Transcript
Highlights

Title

Congress examines NIL, transfer portal, and college athlete employee status

Purpose

The House Energy and Commerce Subcommittee on Commerce, Manufacturing, and Trade held this hearing (March 4, 2025) to examine how name, image, and likeness (NIL) compensation, the transfer portal, and the pending House v. NCAA settlement are reshaping college athletics, and to consider a federal preemptive standard for NIL. Witnesses included an athletic director, a coach, and three current or former college athletes, who testified on NIL deals, health and safety, Title IX, and whether athletes should be classified as employees; several Democratic members used the hearing to press concerns about Trump administration cuts to NIH research funding at universities. Begins at0:12:50

Who spoke

Chair Gus Bilirakis (R-FL)0:12:50: Opened by describing NIL as a "wild west" that has enabled pay-for-play collectives and destabilizing transfer-portal churn0:13:52, and called for a preemptive federal standard protecting both athletes and non-revenue sports0:18:24; later questioned Beamer on the transfer portal and revenue sharing1:03:52 and Whitman on protecting Olympic sports1:08:56.

Ranking Member Jan Schakowski (D-IL)0:19:55: Argued the bigger crisis is Trump administration cuts to university research funding0:20:25; later questioned Falcinelli on how NIH cuts could strain athletic budgets1:10:57.

Rep. Robin Kelly (D-IL)0:21:56: Said a proposed NIH indirect-cost cap of 15% would create a "financial earthquake" for universities including HBCUs, MSIs, and HSIs0:22:57, and warned it would hurt sports-medicine and concussion research0:23:58; later pressed Whitman on independent medical care and CTE research2:31:15.

Chairman Brett Guthrie (R-KY)0:25:28: Noted 33 states plus D.C. have passed NIL laws creating a patchwork0:26:59 and that the preliminary NCAA settlement finalizes $2.8 billion in back damages0:27:59; later questioned whether NIH overhead should flow to athletics1:16:01.

Ranking Member Frank Pallone (D-NJ)0:30:01: Said Republicans are ignoring the "real crisis" of Trump NIH cuts in favor of college-sports hearings0:30:32.

Rep. Lori Trahan (D-MA)0:31:02: A former Georgetown volleyball player, said she wrote the Fair Play for Women Act and the College Athletic Economic Freedom Act0:32:34; later grilled Whitman on the House settlement's 75/15/5/5 damages split and cited a Title IX filing by expert Barbara Osborne, entering it into the record1:47:191:48:20.

Rep. Debbie Dingell (D-MI)0:33:35: Echoed NIH funding concerns0:33:35 and later cited a GAO finding that 93% of institutions fail Title IX participation standards and that new revenue-sharing plans give men's football/basketball 90% of payouts2:09:31.

Rep. Russell Fry (R-SC)0:37:38: Introduced witness Shane Beamer0:37:38; in his own round argued for federal preemption paired with industry-led rulemaking2:15:34 and asked about recruiting and Olympic-sport impacts2:16:35.

Emily Cole, All-American track athlete, Duke University0:39:39: Described becoming the first NCAA athlete to profit from a book under new NIL rules0:41:10 and now holds deals with brands like Dick's Sporting Goods and Gatorade0:42:41; opposed classifying athletes as employees, warning it could hurt non-revenue and women's sports0:43:42.

Justin Falcinelli, CFBPA Vice President / former Clemson player0:45:37: Advocated collective bargaining to address health and safety0:47:13, citing that roughly two NCAA football players die per year this century, mostly in offseason practices0:47:43; cited a $5 million jury verdict for Dr. Scott Lynch after being fired as Penn State's team doctor amid alleged coach interference0:49:14, and noted EA Sports paid athletes a flat $600 fee with no share of over $700 million in game revenue1:36:42.

Anthony Egbo, Abilene Christian University football player0:50:45: Described NIL deals including a sandwich named after him and a First Financial Bank ambassadorship0:52:15; said student athletes overwhelmingly want uniform NIL rules but do not want to be classified as employees0:53:15.

Josh Whitman, Athletic Director, University of Illinois0:55:47: Outlined five legislative requests: codifying athlete protections, a national NIL/revenue-sharing framework, state-law preemption, a limited antitrust safe harbor, and clarity that athletes are not employees0:59:20; later acknowledged Title IX's application to new revenue-sharing payments remains unclear1:49:20.

Shane Beamer, Head Football Coach, University of South Carolina1:00:51: Called the current system unsustainable and urged a national bipartisan law1:01:51, noting fewer than 2% of college athletes turn pro1:02:22; said 80 of his players have graduated since he became head coach in 20211:05:24.

Rep. Kathy Castor (D-FL)1:22:05: Noted college sports generate over $18 billion and cited harm to Florida universities from federal research-funding shutdowns1:23:35; pressed Cole on Title IX equity in NIL1:26:06.

Rep. Russ Fulcher (R-ID)1:27:37: Noted the House settlement's $2.5 million revenue-sharing cap exceeds the entire athletic budgets of Boise State, Idaho, and Idaho State, and asked whether smaller schools can stay competitive1:28:07.

Rep. Darren Soto (D-FL)1:33:11: Highlighted EA Sports being based in his district and asked Falcinelli about next steps for player empowerment1:35:42; raised NIH-funded dehydration/kidney research tied to student-athlete safety1:37:37.

Rep. Diana Harshbarger (R-TN)1:39:44: Asked Egbo how many transfers is too many for academic progress1:40:44 and Beamer how a national NIL standard would affect competitive balance1:42:15.

Rep. Yvette Clarke (D-NY)1:58:26: Argued ending "amateurism" was overdue and questioned framing NIL payouts as a "crisis," calling instead for hearings with the NCAA, conference commissioners, and collectives2:01:27.

Rep. Erin Houchin (R-IN)2:02:58: Described killing her own state data-privacy bill to avoid a 50-state patchwork, drawing a parallel to NIL law fragmentation2:03:59; asked Whitman and Beamer how the lack of a national standard affects recruiting2:04:29.

Rep. Marc Veasey (D-TX)2:19:37: Raised concerns about SEC campus climate under "DEI" rhetoric affecting Black athletes2:20:38 and pressed Whitman on UCLA-scale travel burdens in the expanded Big Ten2:22:39.

Rep. Laurel Lee (R-FL)2:35:17: Asked Whitman how codifying the settlement would affect NIL collectives2:35:48 and about antitrust safe harbor versus blanket exemption2:36:18.

A Texas committee member2:25:41: Raised concerns about disparities between "haves and have-nots" among revenue and non-revenue programs, citing Illinois golfers earning NIL money while their sport runs at a loss2:26:12.

Rep. Kim Schrier (D-WA)2:40:53: A pediatrician, said NIH cuts of 15% indirect-cost caps could cost Fred Hutchinson Cancer Center $125 million annually and disrupt ongoing pediatric cancer trials2:42:55.

Rep. Tom Kean Jr. (R-NJ)2:45:26: Asked Whitman how reclassifying athletes as employees would affect smaller schools, citing the Dartmouth men's basketball NLRB case2:46:272:46:57.

A California committee member (self-described former Caltech football player and 1998–99 EA Sports NCAA football developer)2:52:22: Argued for a "win-win-win" framework and asked Cole and Whitman why employee status is opposed by athletes themselves2:54:53.

Rep. Gabe Evans (R-CO)2:50:00: Asked Cole how athletes can be educated to avoid exploitation in NIL deals2:51:31 and Whitman about state tax exemptions on NIL income creating competitive advantages2:53:32.

Rep. John Joyce (R-PA)2:56:03: Cited Penn State's "Roar Solutions" NIL program2:57:04 and asked Whitman about states amending tax law for recruiting advantage2:59:05.

Rep. Buddy Carter (R-GA)3:02:08: Asked how revenue is shared across non-revenue sports at South Carolina and Illinois, and praised the value of Olympic and women's programs3:04:09.

Rep. August Pfluger (R-TX)3:08:12: An Air Force Academy alumnus, asked about conference realignment's effect on non-revenue and women's sports and entered an RG3 tweet on "the soul of college football" into the record3:10:13.

Key moments

Falcinelli cited a Pennsylvania jury's $5 million award to Dr. Scott Lynch after he was fired as Penn State's head team doctor, allegedly in retaliation for opposing coach James Franklin's interference in return-to-play decisions0:49:14.

Guthrie noted the preliminary NCAA settlement finalizes $2.8 billion in back damages plus a framework letting schools share revenue directly with athletes starting next year0:27:59.

Whitman outlined a five-point legislative ask: codified athlete protections, a national NIL/revenue-sharing framework, preemption of state laws, a limited antitrust safe harbor, and clarity that athletes are not employees0:59:20.

Trahan highlighted that the House settlement allocates 75% of damages to football players, 15% to men's basketball, and just 5% each to women's basketball and all other athletes, and entered a Title IX analysis by expert Barbara Osborne into the record1:47:191:48:20.

Whitman acknowledged there is "a lack of consensus" on how a 50-year-old Title IX law applies to new NIL/revenue-sharing payments, creating what he called a "really challenging" balancing act1:49:20.

Fulcher noted the settlement's roughly $2.5 million per-school revenue-sharing cap exceeds the entire athletic budgets of Boise State, Idaho, and Idaho State1:28:07.

Falcinelli said the EA Sports college football video game paid athletes a flat one-time $600 licensing fee while the game generated over $700 million in revenue, with no royalty share for players1:36:42.

Multiple members and witnesses (Whitman, Beamer, Cole, Egbo) opposed classifying college athletes as employees, citing risks to non-revenue sports, roster cuts, and tax/eligibility complications, while emphasizing athletes themselves don't want employee status0:43:420:53:151:56:24.

Clarke questioned holding an NIL hearing framed as a "crisis" while research-funding cuts loom, calling instead for hearings that include the NCAA, conference commissioners, and collectives2:01:27.

Whitman said states such as Missouri and Arkansas now permit NIL payments to high-school recruits with signed letters of intent, and some states cap agent fees or offer NIL tax breaks, calling this a "race" for competitive advantage that only federal preemption can resolve2:32:10.

Metadata

CommitteeHouse Energy and Commerce Subcommittee on Commerce, Manufacturing, and Trade
Chamber / CongressHouse · 119th Congress
Date2025-03-04
TypeHearing
Witnesses
Mr. Josh Whitman — Director of Athletics, University of Illinois
Ms. Emily Cole — All-American Track Athlete, Duke University
Shane Beamer — Head Football Coach, University of South Carolina
Mr. Justin Falcinelli — Former College Athlete; Vice President, Clemson Football; College Football Players Association
Mr. Anthony Egbo — Football Athlete, Abilene Christian University
Videoyoutube
Transcript364 caption blocks · 30,477 words · 3:15:18 runtime
EventCongress.gov 117989