In this week’s Film Room, we unpack the potential impact of DC activity, including:
- a proposed federal law prohibiting student-athletes from being employees
- a potential executive order regarding NIL
House—Quick Update
Two weeks ago, on April 23, Judge Wilken ordered the parties to confer with a mediator within 14 days, in an effort to address the Court’s concerns regarding roster limits. All are on the lookout for party submissions and, of course, the Court’s reaction. As we await determinative action in House, we’ll unpack impactful activity from DC.
Proposed Federal Law Prohibiting Student-Athletes as Institutional Employees
Last month, Rep. Lisa McClain introduced the “Protecting Student Athletes’ Economic Freedom Act of 2025.” The bill would prohibit student-athletes from being considered an employee of an institution, conference, or association “under any Federal or State law or regulation based on participation of the student athlete (or former student athlete) in a varsity intercollegiate athletics program.”
The bill is narrow—it addresses just student-athlete employment and not other college athletics-related issues that seem to enjoy less bipartisan support. As such, perhaps this bill has a higher likelihood of becoming law than other proposed bills that have failed to advance. A definitive federal law on the employment question would simplify one aspect of the challenging set of athletics-related legal questions faced by institutions.
Potential Executive Order on NIL
Late last week, news broke that President Trump is considering issuing an executive order regarding NIL activity, following a reported meeting between President Trump and Nick Saban that was coordinated by Sen. Tuberville.
Based on prior comments regarding NIL from Coach Saban and Sen. Tuberville, one might expect an executive order in line with those comments to offer restrictions on third-party NIL. Of course, the proposed House settlement contemplates a clearinghouse and enforcement mechanism for most third-party NIL that would funnel applicable deals through an FMV analysis. An executive order could add some heft to those procedures. It might also conflict with various state NIL laws or motivate federal legislative activity to further buttress third-party NIL enforcement. Much is still to be determined. What’s for certain is that third-party NIL regulation will be layered, complicated, and a key area for institutions to get right when competing at the highest level.
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