Brett Guthrie Calls Out Unclear NIL Rules: ‘Some Student Athletes Are Being Misled By Bad Actors’

2 days ago

During a House Commerce Committee hearing prior to the congressional recess, Rep. Brett Guthrie (R-KY) discussed the need to establish a clear framework to protect college athletes.

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Transcript

00:00Chairman Guthrie for five minutes for his opening statement. Thank you, Mr. Chair. Thanks for

00:05yielding and I appreciate it. It's nice sitting next to my loyal Gamecock here and he's proud to

00:09have his team represented here at this hearing today and I really appreciate you being here

00:14and bringing an opportunity to be here. I know it can be a long trip and can sometimes be

00:19intimidating sitting at the witness stand and it means a lot that you're here to represent your

00:23sport your sports and because today college athletics is a multi-billion dollar industry

00:29fueled by the dedication of talent and dedication and talent of student athletes.

00:35So some of you here today know how hard you work to get where you are. For decades student athletes

00:40were prohibited from earning money from their own name image and likeness even as sports brought

00:44significant revenue to universities conferences in the NCAA. That changed in 2021 as the NCAA

00:51undergoing mounting pressure from state laws lawsuits and supreme court ruling lifted its

00:56restrictions. As a result student athletes could finally profit from their own name

01:01image and likeness and rightfully so. This was a long overdue step finally allowing student

01:06athletes the opportunity to benefit financially from their talent hard work and public personas

01:13but the rapid rollout of NIL has introduced new complexities and challenges. The absence of a

01:18uniform national framework has allowed a patchwork of state laws and institutional policies to grow

01:24creating disparities and confusion among student athletes and universities alike. So far 33 states

01:30in the District of Columbia pass NIL laws oftentimes focusing on creating a competitive

01:36advantage for their states and state universities instead of prioritizing good policy. As this

01:42competing subcommittee knows well a patchwork of state laws lead to uncertainty inconsistency and

01:48confusion. One of the more concerning developments is the rise of what we have now the pay-for-play

01:54system. Third-party groups have blurred and in some cases fully wiped away the lines between

01:59legitimate NIL opportunities and outright recruiting inducements. Without clear rules or

02:06transparent practices some student athletes are being misled by bad actors and are pressured into

02:12signing unfair contracts that may not serve their best interests. Adding to this transformation the

02:17preliminary NCAA settlement could permanently alter the financial model of college athletics.

02:24It finalized a 2.8 billion dollar deal and back damages that would be distributed to current and

02:30former student athletes while institutions beginning in the next school year would be

02:35allowed to share revenue directly with student athletes. A move that will fundamentally change

02:40the way college sports operate. While the NCAA settlement could bring much needed structure and

02:47stability to the current landscape it may not be sufficient to address the opportunities and

02:52challenges posed by NIL. As we examine this issue our goal is to consider the implications of the

02:58NCAA settlement, assess the current state of NIL policies, and explore legislative solutions that

03:05serve student athletes, educational institutions, and conferences they compete in. Like many of you

03:12my family and I have cherished memories of cheering our favorite teams on campus. Go Hilltoppers!

03:17Watching it we watch young athletes grow into leaders both on and off the field. I know my

03:24colleagues agree with me that we must preserve the spirit and virtue of collegiate athletics

03:29and ensure non-revenue generating programs are protected. I am grateful that our witnesses are

03:34willing to be here today. I know you volunteered to be here today to help us better understand

03:39the opportunities and the challenges that NIL presents. I look forward to an informative

03:45discussion on how our committee can help shape a sustainable and transparent NIL system. I appreciate

03:52y'all being here and I'll just say I talked with my friend end of last year the way you guys were

03:57playing at the end of the year. If y'all had gotten in the playoffs y'all might have gone a long way.

04:00You really put that team together in a in an impressive way and those of us who are from

04:05other SEC schools fans then it's always good to have everybody successful so I know my good

04:12friend here so I will yield back.

Brett Guthrie Calls Out Unclear NIL Rules: ‘Some Student Athletes Are Being Misled By Bad Actors’

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