Thread: The College Athlete Economic Freedom Act (CAEFA) from @ChrisMurphyCT & @RepLoriTrahan is the best NIL - actually, NILAR - proposal out there - state or federal.

It empowers college athletes rather than treating them as people that need to be protected.

1/x https://twitter.com/RickyVolante13/status/1357393166622679041

In the context of NILAR, CAEFA recognizes College Athletes (and prospective CAs) as full-fledged citizens and empowers them to maximize their earnings without oversight from the NCAA, conferences, or a committee or "guardrails" to curtail their opportunities.

2/x

Universities, conferences, & the NCAA cannot create rules that interfere with CAEFA, nor can a state enact laws to limit (or expand) it - interesting 10th Amendment question to be raised given Murphy v NCAA, but I'll leave that to con law experts. [Sections 3(a)(1) & 6]

3/x

Universities and conferences cannot collude to restrain the value of the individual and group licensing rights recognized by CAEFA. An attempt to do so would be a PER SE violation of the Sherman Act. [Sections 3(a)(2) & 5(c)]

I know @andyhre loves PER SE.

4/x

CAEFA doesn't give College Athletes the ability to unionize - a legal issue complicated by public vs private schools - but it does create the right to collective representation through an association. [Section 3(a)(3)]

5/x

CAEFA allows for College Athletes to group license & gives them expansive powers in controlling those group licenses [Section 3(a)(4)]. This means an @EA game w/ actual players.

Athletes may even be able to require distributors to seek a license before airing live games.

6/x

That is HUGE! Obviously, it's up for legal interpretation & legislative intent would be key, but I think athletes would have enough there to scare distributors, likely resulting in athletes having a seat at the table of any such tv/digital discussions.

7/x

It's also worth noting that despite some claims on this here website, almost every other NIL proposal/law out there doesn't permit group licensing - federally & at the state level.

Meaning an @EA game with fake players, even with NIL legislation at the state level.

8/x

Under CAEFA, if an athlete receives compensation, it doesn't impact eligibility re scholarships (or the amount, duration, or renewal of the scholarships). [Section 3(a)(5)]

Also, equitable support needs to be provided by the institution to all athletes. [Section 3(a)(6)]

9/x

Athletes may seek individual agency, legal, & financial representation + schools/conferences can't regulate those reps. I love this b/c such regulation is generally left to unions/associations. [Sections 3(b)(1) & (2)]

Importantly, CAEFA can't be waived. [Section 3(c)]

10/x

Section 4 focuses on grants to analyze the NILAR market (comparatively less interesting but important).

I suspect such analysis will prove many "experts" wrong about the whole 1% will benefit from NILAR schtick. This proposal would benefit a large % of college athletes.

11/x

Section 5 loops in the FTC Act, gives the FTC enforcement power re CAEFA (including against nonprofits - important given the structure of the NCAA, conferences, & most institutions), & establishes a private right of action for athletes [!!!]

12/x

Again, HUGE! This means that athletes could bring civil actions against universities, conferences, etc. for violating their rights recognized by CAEFA. This + PER SE violations in Section 6 gives CAEFA real teeth to go after violators.

13/x

Section 7 ensures that scholarships tax-exempt status stays in effect under Section 117 of the IRC.

Compensation would obviously be subject to the IRC, but paying taxes is part of being a US citizen -- unless of course you're super rich or DT.

14/x

This proposal importantly plants a stake much further to the left on NILAR than Sens. Booker & Blumenthal did.

It also shows divergence amongst Democrats on the issue.

Compromises will be made, so it's important not to start too centrist or a pro-NCAA bill could result.

15/x

Given the convo that @D_West30, @ChrisMurphyCT, & I had on these issues, I'd guess this is but one move in a bigger game.

Sen. Murphy explained that college athletes should be employees, but this doesn't touch that. What else could be coming?

https://podcasts.apple.com/us/podcast/episode-22-senator-chris-murphy-malik-yoba/id1506872433?i=1000499611516

16/x

If you're scared of college sports w/o "guardrails," then you're not as pro-athlete as you think.

College sports were professionalized long ago & it's time the athletes are able to get paid above the table. @ChrisMurphyCT & @RepLoriTrahan's bill is a step towards that.

17/17