Ted Cruz plots major NIL push with new Senate committee power
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Ted Cruz speaks during a Senate Judiciary Committee hearing in 2020. Photo: Andrew Caballero-Reynolds/AFP via Getty Images
Sen. Ted Cruz (R-Texas) is planning to hold an early hearing on the booming name, image, and likeness (NIL) industry as he seeks to pass a federal law to standardize NIL rules, sources told Axios.
Why it matters: Federal regulations have a better chance of moving in Congress now that Cruz, their top proponent, chairs the powerful Senate Commerce Committee.
- NIL laws currently vary by state, which lawmakers fear could drive inequities for athletes and universities, and a bad fan experience.
- "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."
Zoom in: The NIL issue is expected to be one of the committee's earliest hearings, though the details and timing is not yet set.
- Senate committees have been most focused on confirming President Trump's nominees in these early weeks.
Catch up quick: The NCAA implemented an interim NIL policy in June 2021 that allowed student-athletes to monetize their brands.
- States have since passed their own NIL laws and athletes who attend schools in a state with its own NIL laws are beholden to their state's rules.
- Proponents of a federal law argue that college sports will become corrupted if a new rule isn't passed to protect the NCAA from player antitrust lawsuits.
- Cruz's goal isn't necessarily to protect the NCAA, but rather ensure it has the necessary legal protections to enforce its own rules around things like spending caps, which make recruiting more equitable.
The big picture: NIL has bipartisan support for reform, but it hadn't been a top priority for congressional leaders.
- Cruz introduced a draft bill in 2023 that sought to codify NIL rights for athletes while also providing clarity to the NCAA and universities around whether student-athletes can be considered employees of their universities.
- Cruz received some bipartisan support at the time. Now he's redoubling his efforts to get colleagues on both sides of the aisle on board, hoping for more movement with GOP control of the government.
- The NCAA has lobbied aggressively in favor of a federal law that would standardize student compensation. Its efforts are being aided by former Gov. Charlie Baker (R-Mass.), who became president of the organization in 2023.
