High Country Times

Today, the Chairman of the Health, Employment, Labor, and Pensions Subcommittee, Rick Allen, led a hearing titled "Game Changer: The NLRB, Student-Athletes, and the Future of College Sports." In his prepared statement, Allen addressed concerns regarding the evolving landscape of college sports, notably shaped by recent policy changes allowing student-athletes to receive compensation for their name, image, and likeness (NIL).

Allen highlighted a recent development in a legal case involving the National Collegiate Athletic Association (NCAA), where a settlement agreement could allow schools opting in to directly share revenue with student-athletes.

A significant issue discussed was the ongoing debate over the classification of student-athletes as employees, a stance supported by some activists and the National Labor Relations Board (NLRB) under the Biden-Harris administration. Allen warned, "One threat that still looms large to the foundation of college athletics is efforts by activists and the National Labor Relations Board appointees under the Biden-Harris administration to deem student-athletes as employees." He suggested this shift could lead to increased costs, administrative burdens, and unintended consequences for student-athletes, including scholarship taxation.

Reflecting on these concerns, Allen praised the withdrawal of a memorandum by former NLRB general counsel Jennifer Abruzzo, which guided field offices to consider student-athletes as employees. Though this memo has been suspended, Allen emphasized the need for potential federal legislation to prevent future NLRB actions in this direction.

Allen noted a new legislative initiative by Congresswoman Lisa McClain, the Protecting Student Athletes’ Economic Freedom Act, to clarify that student-athletes should not be regarded as employees. "I look forward to discussing her legislation, which is critical to ensuring the viability of college sports long term," he stated.

Allen also mentioned his intent to draft legislation removing draft age restrictions in professional sports' Collective Bargaining Agreements, aiming to provide alternative compensation paths for student-athletes outside the collegiate framework.

The hearing sought to address the uncertainties ahead and aimed for collaborative solutions. Allen concluded, "The world of college sports is in a transformational period, and there is still uncertainty about the landscape moving forward."

The hearing featured a panel of witnesses providing their insights on these critical issues.