Here's how the Protect College Sports Act could impact the economics of college sports

The Protect College Sports Act may soon come up for a vote in the Senate. Here's what to know.

The U.S. Senate may soon vote on a bill that aims to "save" college sports.

Senate Majority Leader John Thune said the Senate expects to vote on the Protect College Sports Act when the chamber reconvenes in a month, following its recess.

"College sports is something that needs to be fixed. They have a good solution," Thune said. "We got it teed up for next month."

The bipartisan bill was introduced in the Senate in May by Republican Ted Cruz of Texas, Democrat Maria Cantwell of Washington state and Republican Eric Schmitt of Missouri with the aim of regulating college sports in the name, image and likeness era. Since 2021, college athletes have been able to earn money through NIL - sometimes getting paid huge sums with little oversight, a situation that's been likened to the "Wild West."

Cruz gave an extended presentation on the proposed bill at a Senate GOP lunch two weeks ago and called the conversations around the bill "very good."

But a spokesperson for the Senate Committee on Commerce, Science, & Transportation said at the time that the committee was "not sure" about the bill's timeline.

Here's what you need to know about the Protect College Sports Act, and what could come next.

What's the controversy around NIL?

In 2021, the U.S. Supreme Court ruled that the National Collegiate Athletic Association's amateurism rules violated federal law, ending the NCAA's longstanding immunity from corporate regulation. The ruling paved the way for college athletes to receive NIL compensation, and five years later, in 2026, the NIL economy is estimated to be worth $2.7 billion, per Opendorse.

But critics say that ruling has led to a highly commercialized athlete economy that the NCAA has had difficulty regulating. It has also blurred the line between college and professional sports. NIL earnings from top players in college football and basketball, in particular, are now comparable to what some professional athletes earn. Some of the highest earners in college sports last season were University of Texas quarterback Arch Manning ($5.4 million) and Brigham Young University basketball forward AJ Dybantsa ($4.2 million). This has led to some athletes delaying graduation in order to extend their college careers.

What would the Protect College Sports Act do?

The Protect College Sports Act aims to create a more standardized college sports economy.

The proposed bill would give the NCAA an antitrust exemption and enact the following for its member schools:

-- Limit athletes to a one-time school transfer without penalty

-- Create a national registry for agents wishing to represent athletes

-- Establish new spending and revenue-sharing frameworks

-- Set a five-year limit on athletes' participation in college sports

-- Bar former professional athletes from playing college sports

-- Set a new spending cap on how much each college can pay its athletes

-- Restrict colleges from signing a head coach from another school during a given sport's current season

-- Put limits on conference expansion and a possible Super League

Limiting the amount colleges spend on players is seen as a critical issue.

The NCAA and its conferences agreed in 2024 to a spending cap of roughly $20 million per college for all sports programs. But some of the richest teams in college football have attempted to legally circumvent that cap by using their business partners to make NIL payments to athletes, elevating the cost of some football rosters to nearly $40 million. The Protect College Sports Act would grant authority to the College Sports Commission to close such loopholes, potentially reducing the amount of money flowing to athletes.

The new bill would cap spending at $48.8 million, consisting of $21.3 million from the settlement of the House v. NCAA antitrust class-action lawsuit; a $22.5 million retention pool; and $5 million for nonrevenue sports.

"We need to stabilize the arms race," Cantwell said in a statement about the bill.

Top-performing players could see their earnings take a hit. A spending cap, or salary cap, could limit the earnings potential of top athletes because it would prevent an open bidding process. A potential cap could trap elite players inside a single fixed school budget that has to be split among dozens of teammates, forcing superstars to take a discount so the college can afford to fill out the rest of the roster.

"I believe the pseudo salary cap embedded in the PCSA has the potential to materially harm the earnings potential of top college athletes," Darren Heitner, a lawyer who brokers NIL deals for student athletes, said when the bill debuted in May.

Will it 'save' college sports?

Many in the industry have touted federal intervention as a way to "save" college sports by standardizing how recruitment and payment of athletes work. But the idea that college sports actually need saving is up for debate.

Heitner told MarketWatch he doesn't think this bill will save college sports, for a few reasons. One is the new spending cap, but another is the fact that the new college sports economy set out in this bill is unfolding without the players' participation.

"Unlike professional leagues, where players' unions negotiate salary caps as part of a comprehensive collective bargaining agreement that includes minimum salaries, revenue floors and other protections, college athletes have no seat at the table," Heitner said.

Athletes.org, a nonprofit organization that advocates for college athletes' rights, opposes the bill and continues to push for athletes to be allowed to unionize.

But the bill has plenty of supporters. The NCAA is one, with its president, Charlie Baker, saying in a letter to lawmakers that college sports needs the backing of Congress to "set nationwide rules everyone can play by."

"Without Congress, failed professionals will continue to use college sports as a fallback option - robbing the next class of young athletes of college scholarships," he said. He called on lawmakers to "pass this vital legislation without delay," saying that student athletes returning to campus this fall deserve clarity.

"The assault on the integrity of college athletics continues, with new lawsuits further threatening the stability of the upcoming college football season," Baker added. "Student-athletes cannot afford to start another school year under a cloud of regulatory instability and legal confusion."

The NCAA's major conferences have all publicly supported passage of the bill, as well. The Big Ten and SEC did not support it initially but have since announced their backing of the bill "as currently drafted." Part of the reason for their reversal was due to a higher cap and stronger language on third-party NIL transactions, according to the Associated Press.

Former Alabama head football coach Nick Saban, who is now a member of the College Sports Commission, said the bill is "not perfect, but it certainly addresses 80% of the needs."

What's next?

Thune said the bill is expected to be considered after the Senate reconvenes on Sept. 14.

But while the bill is on the agenda, that doesn't guarantee Thune will bring it to the floor for a vote. The bill's sponsors will have to convince him they have enough votes to pass it.

"This bipartisan bill is how we protect women's and Olympic sports," Cantwell said in a statement. "I look forward to its passage in September."

If the bill passes in the Senate, it would then move to the House of Representatives and, if it passes there, would then go to President Donald Trump to be signed. Trump has already signaled his support for the legislation, saying that college sports "is in turmoil right now."

If Congress doesn't pass the bill in September, that could make its passage later in the year, as midterm elections approach, more difficult.

-Weston Blasi