Transcripts For CSPAN2 Hearing On College Athlete Compensati

Were honored to have the full Committee Chairman with us this morning and i expect senator blumenthal the Ranking Member to join us momentarily. As chairman of the subcommittee with jurisdiction over amateur athletics i welcome all of you to todays hearing, it is entitled name, image, likeness of athletic compensation. The expectation or hope that we might limit ourselves to the type of conversation but have no control over my colleagues or necessarily what the witnesses will say that may take us broader in scope. I absolutely look forward to hearing from her witnesses and im appreciative of all l of thm in the university of kansas, the president of Athletic Association and the big 12 and two former student athletes. In my home state we have a rich history of College Enter College Athletics, university of kansas one in the womens soccer team one the 12to title last in my hometown of manhattan, phil snyder revolutionized College Football at Kansas State University and the legacy continued by the current coach and athletic director. Who can forget Wichita State at the ncaa basketball tournament in 2013. In addition to kansas city, it was a National Headquarters for the ncaa for 45 years before moving to indianapolis. Senator young is not here but i would remind them we welcome them back to kansas city at any time. While division i schools often come to mind in my view, we cannot lucite over the 1000 colleges and universities across three divisions including ncaa. In kansas we have division ii who one for d2 titles most recently in 2011 newman and washburn. I hope in this conversation that those schools in their athletes are not forgotten. Altogether there are nearly 500,000 student athletes to compete in 24 different sports. The ncaa restrictions tied to amateur athletics eligible the high gain National Attention and heated debate in recent years. Specifically how student athletes are restricted from profiting from their name, image or likeness to supplement the currentt scholarship t and relad benefits that they receive. These debates resulted in state legislatures taken their own action in california, the fair pay to play act was signed into law last september and will prohibit california universities and college from preventing student athletes from compensation for the use of the name, image or likeness from thirdparty. Coming into effect 2023, the law will allow student athletes in california to hirell agents d other representation following suit, legislation has been introduced in 20 other states with more expected to follow raising concerns the ability of nationwide organizations and to function within a system of differing state laws and provisions. Last may the ncaa began to take steps to address the debate from profiting from the name image and likeness by appointing a working group for modification that allow a demarcation between a professional and amateur athletic and ensure they are still align with the general mastudent body. The working group is expected to issue recommendations early this year would new world scheduled to be of amended in 2021. Understanding how state and federal laws and regulation on name, image and likeness would affect the athletic system is critical in shaping Congress Efforts on this issue. Some of thehe complicity includg thirdparty agents, current definition of amateurism and incentives made available to the College Athletes. As we will hear today College Athletes excuse me College Athletics teaches young men and women skills the serpent brought their life. But the most important aspect is they are first a student at ncaa student athletes have higher Graduation Rates than nonathlete is significant because lesshlhl than 2 to oneo become professional athletes. It is important factor to convert the harm the wellbeing of joining usat today to provide different perspectives on this issue is the commissioner of the big 12 conference, doctor mark, president of the national athlec association, university of get this, executive director of the National College Players Association and former ucla athlete and chair of the ncaa Student Athlete Advisory Committee and former new mexico track student athlete. We are also honored to be joined by former ohio State University football student athlete and u. S. Congressman representing anthony gonzalez. The congressmans background for this issue is valued by the subcommittee and i think him for his willingness to date that Opening Statement. With the conclusion of my Opening Statement i turn to blumenthal for his. Thank you so much chairman i want to express my special appreciation to you and determine wicker as well as to Ranking Member cantwell for addressing an issue that will grow in importance already as preoccupy the minds and hearts of any enter many who are in the College Athletics in the future of the great individual who participate in college in sports. We are now holding the senate first overhearing on compensating College Athletes, thanks to you for advancing a number of promising ideas which i hope we will take into account in our work. We have a highly significant opportunity to understand how we can protect College Athletes, while promoting sports, are College Athletes fuel the 14 billiondollar industry that literally makes money for countless companies and agents and almost nothing for the athlete themselves. We should ensure they receive equitable compensation for theis hard work and the value they create. Across the country College Athletes are being taken advantage ofkva by financial mol that is law the ncaa to profit on names, images and likenesses without allowing those athletes compensation in return. College athletes risk their health and safety to play these parts but in return their compensation is capped at attending their college or university. And theyre not even guaranteed to have sports related injuries covered by their schools. They can other scholarships revoked in the event of a college and career ending injury. Thishi system is deeply unfair, repugnant to the very idea that the college is still actively is found in inherently flawed as an economic matter as well as inconsistency. Only student athletes are far from compensation for others. Her able to monetize this growth in their free time student who teach musicians or mapmakers or High School Student for College Athletes receive no compensati compensation, no financial recognition at all. The hosta change has to change. We are hear from the expert and to begin this consideration. The egregious unfairness or multiple, we know well that College Coaches are paid multimillion dollar salaries outpacing the pay of many executives and almost all the teachers not their schools, many of the College Coaches ranked as the highestpaid Public Employee out of 41 out of 50 states, when universities are not turning their coaches into millionaires they put millions of dollars into new athletic facilities, in fact tens of millions of dollars upwards of 130 million. In short everyone is profiting off the same image, likeness and accomplishments of College Athletes except for the athletes themselves and during a period when the earning capacity may be at its height. Amateurism cannot be a means to monopolize College Athleticism for lucrative media deals. I hope the california fair play act will be part of her consideration amongfa other this the laws provide new opportunities for women athletes who have less professional sports options after college then men allowing them for their athletic achievements while in college. In. Look forward to reviewing ts work because we have a responsibility especially in the absence of leadership elsewhere but i hope there will be a leadership, i hope the ncaa will take advantage of what they hae to do right by hundreds of thousands of athletes across the country whose talents generate billions of dollars for the College Industry and im glad the ncaa is taken necessary steps to update the policy. I look forward to hearing from the ncaa as to new rules to compensate athletes for their names, image and likeness. Fairness is at stake. Thank you. Thank you, i look forward to working with you on this topic and we have a habit of responding to california legislation. [laughter] i think we can do it one more time. Maybe we can do it in both instances. I now recognize senator wicker, him and his staff have been instrumental and supportive of ourgn efforts. I appreciate his presence here. He is recognized. Thank you very much. Chairman moran and Ranking Member blumenthal for this important hearing, we see by the size of the crown in the attention that this hearing is receiving that we are onto something very important and timely. I dont know how i feel about this issue mr. Chairman. I dont know where its going to lead but let me say i do not disagree with anything that the chair or senator blumenthal had said during the Opening Statement. We have a situation where states are moving forward and we need to address the issue. Im as proud of my States History of Intercollegiate Athletics and senator moran pointed out in hisol Opening Statement and senator blumenthal had taken the time to do so he could appointed two great accomplishments in connecticut also. Many College Athletes come from middleclass families as i did who could scrape together the funds and pay for a College Education on their own if they had to. But for many collegiate athletes, male and female in football, basketball or some of the other sports that are not quite so popular, its a first opportunity for that family to get out of poverty, too go to college, to grab on the ladder of economic success. And certainly, the legislation in california in the legislation being proposed elsewhere recognizes that theres been a disparity that ought to be addressed. Perhaps main image and likeness is the answer. I wonder, senator blumenthal if it is the answer in all categories of intercollegiate sports and i wonder if we can come up with something as a nation with the help of the ncaa and the help of states to help us figure out the fairest way to make sure no one is left out in the athletes that do contribute to this 14 billiondollar per year economy are given their fair share to our universities. I agree with you, we could get into other issues and had another hearing just a few days ago. And we learned there is a problem with Intercollegiate Athletics developing. Im going to stay away from that today, i hope members up and down the dais will heed that we have a specific topic to talk about today, i dont know where this will lead but i think its an important step in the chair and the Ranking Member, kudos for getting us moving on that. With that i yield back. Thank you very much and thank you for your leadership on this issue in your full committee and your hearing last week. Now let me recognize anthony gonzalez, a member of the house representative of ohio with a history regarding being a studentad y athlete and we welce your statement. Thank you. Chairman worker, chairman moran, Ranking Member blumenthal and subcommittee. Thank you for inviting me too speak on this topic. The former student athlete, i know firsthand the Impact College foretells honor students, athletes and communities across the country. For me and my template for ohio state shape my life, the appreciation for the life until lessons i learned grows everyday. College athletics has a way of doing that. Many of my teammates, College Sports provided the best and only opportunity to attend college and earn a degree. That said, College Sports has now been a multibillion dollar enterprise as few can imagine when it formed in 1906. College athletics generate more than 10 billion of revenue in 2018 and student athletes are barred by capitalizing their name and likeness. This is ave regulation and colle campuses. An awardwinning full scholarship chemist can accept any financial award that may come her way but the fastest runner on the track team cannot. The reality, the majority of student athletes are facingg the same pressures of the general student body including student loan debt. Outside of the high revenue sports the majority does not receive full tuition scholarships, division iii receive no scholarship at all. It would empower these athletes to make a few extra dollars to alleviate financialla pressure. In this disparity that spurred california fair pay to play act. The law grants the rights to student athletes to compete in california. While i agree with idea principal, California Law captured to get this right. First, a statebystate approach through the collegiate athletic system is a chaos. It would undermine competition from schools from different states even if they compete in the same conference. As it stands, ucla and arizona state, both 12 members, under the California Law, students considering athletic scholarship offers have f an added incentive to pick ucla the ability to profit often name and likeness. This will onlyin get worse when the laws become the norm. Secondly, the California Law created a system that failed to understand the reality of the hypercompetitive recruiting process. Guardrails are crucial to protect the game and student athletes from overzealous boosters who may want to buy their way through schools championship. Nevertheless the California Law did one thing right. It forces discussion of an il into the National Conversation and compelled into w, universities to confront the reality had on. Over the past several months i athletes,student linseed aa and the University Human strangers including those testifying here today, despite uncertainty on the right path forward there is consensus that something must be done in federal action is needed, over 20 additional states are in the process of passing the laws, the question is not, should student at the table to process off of nil. The question before today, how can we preventn statebystate chaos and protect the athletic system that is beloved across the nation. It must prevent to capitalize on the right regardless if they participate in football or the supple team. Also athletes who want to earn a little money using their talent to pay off Student Loans or take their significant other on a date. Second, federal legislation must protect student athletes in the recruitment process and bad actors. By expanding upon existing protection in the federal law forbade actors to encourage oversight and promote transparency to universities ara aware of the contract the students are entering into. Any legislation must also guarantee the student athletes are considered students, not employees of angu institution. Using nil to create an employment framework would destroy College Sports as we know it. Import protection for student athletes would be completely eradicated. For one, the student athlete can be hired here she can be fire. From personal experience i can tell you Incoming Freshman recruits do not live up to expectations in the first few seasons, firing the students instead of investing would eliminate countless opportunities in many instances the onlyst opportunity. The reality the train has left the station on nil no longer a question of if but when and how. Congress must act to preserve the sports system we all know and love. For those reasons i began to draft federal legislation in the house to allow student athletes to profit from nil and create one standard. I look forward to hearing from the witnesses on the issue and working with my colleagues too find a bipartisan solution to the challenge before today. Thank you for the opportunity. Thank you very much for your statement and we appreciate your interest and you bring up expertise both on the field and now in congress, we look forward to the bipartisan effort to get this right. Thank you. I will now call the panel of witnesses to the table. Mr. Bob, commissioner of big 12 conference, mark, the Athletic Association, doctor douglas, Chapter University of kansas, executive director of Players Association and mr. Kendall spencer, o the national collegie Athletic Association. Welcome to all of you and we will begin when he is ready. Good morning. Chairman moran, Ranking Member blumenthal, chairman wicker, distinguished members of the su