The Protecting Athletes, Schools, and Sports Act of 2023 establishes federal rules governing college athlete compensation, recruiting practices, and transfer rules. The bill requires third parties—including boosters and collectives that pay athletes—to register with the Federal Trade Commission and formally associate with schools through written contracts, while prohibiting compensation designed to recruit or retain athletes at specific institutions. It restricts name, image, and likeness (NIL) deals from certain industries like gambling, tobacco, and weapons, and requires written NIL contracts that comply with an FTC-developed template. The legislation creates transfer portal eligibility restrictions, generally requiring athletes who enter the portal to sit out one academic year, though the NCAA may waive this for certain circumstances like coaching changes or family hardships. The bill also mandates athlete protections including healthcare coverage, medical expense payments based on school athletic revenue levels, financial literacy programs, and family travel funds from a trust created from tournament revenues. Enforcement is primarily through the FTC, which can treat violations as unfair or deceptive practices, while the NCAA gains regulatory authority over third parties and must submit annual compliance reports to Congress.
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