Student-athletes are increasingly exploring name, image and likeness contracts to benefit from their emerging stardoms. But lawmakers want to make sure those deals don’t provide loopholes for foreign adversaries to exert their influence in the United States.
Utah Rep. Blake Moore introduced the No Foreign NIL Funds Act on Tuesday that would implement a number of restrictions banning foreign governments and adversarial entities from investing in U.S. college sports. The bill would mostly apply to NIL contracts, but it would also extend to sponsorships, media rights deals, hosting amateur athletic conferences, and other joint ventures.
“College sports are woven into American campus life, local communities, and family traditions. But allowing foreign entities to funnel money and sponsorships into college athletics through NIL deals risks undermining the integrity of the game and exposing universities to unintended foreign influence or national security concerns,” Moore, a former student-athlete himself, said in a statement. “NIL should be used to support college athletes, not as a backdoor for moving foreign money into American institutions.”
Since NIL contracts have been accepted in recent years, lawmakers have struggled to adopt comprehensive laws regulating those deals. As a result, there are no federal restrictions banning foreign governments from funding those contracts so long as the agreements are cleared through a list of requirements settled in the House vs. NCAA lawsuit in 2024.
That settlement now allows each school to pay its athletes up to $20.5 million per year, which works out to about 22% of the average athletic department revenue at Power Four schools.
However, many of the organizations that coordinate NIL contracts operate as limited liability companies, or LLCs, that do not require donor lists to be made public. That has raised national security concerns among some lawmakers who said adversarial countries could quietly pour money into a university’s sports program and try to build political influence or gain leverage.
The bill would go beyond those NIL contracts to also block foreign countries from investing in collegiate athletic streams, and it would prohibit entering into contracts with individual universities, media rights distributors, bowl games or postseason football organizations.
Bill would have exceptions for foreign NIL donations
The legislation would carve out some exceptions to allow members of NATO, Australia, New Zealand and Ireland to still participate in those contracts.
Moore pointed to recent incidents in which college football coaches have engaged in foreign trips for lobbying or fundraising as well as some athletic conferences who are finalizing plans to organize tournaments in foreign countries.
The bill has garnered the support of bipartisan lawmakers, and even has the backing of Utah State University’s athletic director, who said it’s crucial “to create a safe and sustainable future.”
“Utah State Athletics firmly supports our student-athletes and their ability to seek name, image, and likeness (NIL) opportunities through the appropriate channels,” USU athletic director Cameron Walker said. “However, the origin of these sources is critical for NIL to function effectively and operate in the best interest of our university, state, and student-athletes. We are thankful for Congressman Moore’s work in this area and support his efforts to create a safe and sustainable future.”