Sen. Ted Cruz Is Looking To Pass Federal Law That Would Standardize NIL Rules

The current state of the name, image and likeness (NIL) industry in collegiate sports is chaotic, to say the least. But Sen. Ted Cruz (R-Texas) is looking to change that.

In 2021, the NCAA passed a policy that gave NIL rights to college athletes. While the NCAA prohibits the schools themselves from paying student-athletes, these athletes can now earn money through outside sources, such as sponsorship, brand deals and NIL collectives.

The industry has taken off, with some of the NCAA's biggest stars reportedly earning millions per year.

Currently, some states have their own laws with regard to NIL. In states without NIL laws, though, colleges create their own policies, which can lead to some big differences in how athletes cash in. Thus, to combat potential inequities, Sen. Cruz wants to standardize NIL rules across the board.

He has plans to hold an early hearing as he seeks to pass a federal law that would do just that.

"Right now, the current world of college sports is the wild West — name image and likeness, open transfer portals," Cruz said on his podcast in November, adding that "we are going to address it."

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The proposed legislation, which has bipartisan support, would also protect the NCAA from player antitrust lawsuits. College sports officials have expressed fear that, without federal intervention, the industry's richest schools would have an unsustainable competitive advantage. That's because antitrust lawsuits could prevent the NCAA from enforcing regulations (like spending caps) that create an equal playing field when it comes to recruiting.

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"Nobody wants to see a handful of super schools with unlimited cash, all the best athletes and nobody else even able to survive," Cruz said, per ESPN.

Cruz previously introduced a draft bill in 2023 that sought to codify NIL rights for athletes while also providing clarity around whether student-athletes could be considered employees of their universities. At the time, the bill had support from both sides of the aisle. But now, as the new Senate Commerce Committee chair, Cruz is ready to bring a bill on college sports to a vote.

Cruz's office confirmed the Senator's plans to OutKick but noted that a date for the hearing has not yet been set. Check back for updates, as OutKick will be following this story closely.