Sponsors (4)
The bill increases protections, transparency, and court access for student-athletes and clarifies tax treatment for NIL income, but it also raises compliance costs, litigation exposure, and the risk that fee caps and new registration rules will reduce agent availability and impose costs on institutions and taxpayers.
Taxpayers and student-athletes gain a clear, statutory tax framework for NIL "investment accounts" beginning in the 2026 tax year, reducing uncertainty about how NIL income is reported and taxed.
Student-athletes gain stronger consumer protections and transparency: agents must use written agency contracts, register with the State, certify registration to athletic associations, and athletic associations must maintain searchable public agent registries linked to the FTC; deceptive recruiting is prohibited.
Student-athletes pay lower negotiated agent fees on endorsement deals due to a 5% fee cap, which can increase the net value of endorsement contracts for athletes.
Taxpayers and student-athletes face increased compliance and recordkeeping burdens from new NIL account rules and the added statutory tax provisions, raising time and administrative costs for recipients of NIL income.
If NIL accounts include tax preferences or deferrals, taxpayers and the federal Treasury could face revenue losses or distributional effects depending on the account design.
The 5% fee cap and new registration requirements may reduce agent availability—especially for smaller or out-of-state agents—and discourage representation for lower-value deals, limiting opportunities for lower-profile athletes.
Based on analysis of 4 sections of legislative text.
Creates tax-favored NIL investment accounts, tightens athlete-agent rules with new prohibited acts, and lets student-athletes sue agents in court while banning pre-dispute arbitration/joint-action waivers.
Introduced December 4, 2025 by Marsha Blackburn · Last progress December 4, 2025
Creates tax-preferred ‘‘NIL investment accounts’’ for college athletes and changes federal law regulating athlete agents. The bill narrows the definition of agency contracts, adds institutional definitions (athletic association, athletic department, conference, varsity intercollegiate sport), expands prohibited conduct for agents (including rules about endorsements, registration, and certifications), and gives current and former student‑athletes a new federal private right of action to sue agents in court. It also makes pre-dispute arbitration agreements and pre-dispute joint-action waivers unenforceable for student‑athlete claims under the Act.