Press Releases

Today, Health, Employment, Labor, and Pensions Subcommittee Chairman Rick Allen (R-GA) delivered the following statement, as prepared for delivery, at a hearing titled "Game Changer: The NLRB, Student-Athletes, and the Future of College Sports."

"We are here this morning to discuss a topic that is very important to me and many of the constituents I represent, which is the future of college sports. 

"As you know, there have been significant changes to the landscape of intercollegiate athletics over the last few years following the NCAA’s updated policy to allow student-athletes to receive compensation for their name, image, and likeness, or NIL.

"And just yesterday, a judge held a hearing for final approval of the historic potential settlement agreement in the House versus NCAA case, which would allow schools that opt in to the agreement to directly share revenue with their student-athletes.  

"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.

"Because of this, there are many unresolved questions regarding how college sports will look in the future. Despite more money than ever flowing into college athletics, universities are supporting fewer sports teams due to a range of challenges. This reality results in fewer scholarship opportunities for young American athletes, many of whom will not become professional athletes but rather play sports as part of their educational pursuits. 

"At its core, college sports are about enhancing student-athletes’ academic experience as well as enhancing their careers after graduation. 

"Unfortunately, that mission was threatened by President Biden’s radical NLRB, stemming from former general counsel Jennifer Abruzzo’s memo providing guidance to all NLRB field offices that certain student-athletes are employees under the National Labor Relations Act.

"The mandate to reclassify student athletes as employees would have had devastating consequences.

"The increased costs of unionization and administrative headaches would have threatened the viability of many college athletic programs, including many women’s sports and small-school athletic programs, resulting in fewer teams, fewer scholarships, and fewer opportunities for young people.

"Additionally, employee status would have triggered unintended consequences for student-athletes, and could have led to them receiving fewer benefits, having scholarships revoked for poor performance, and having scholarships taxed by the IRS.

"While the Trump NLRB acting general counsel rightfully withdrew the Abruzzo (add pronunciation) memo, and the relevant cases before the NLRB have been withdrawn, it is still incumbent on the Committee to consider whether federal legislation is needed to ensure a future Board does not attempt to impose the same wrong-headed policy.

"Yesterday, our Committee colleague, Congresswoman Lisa McClain, introduced the Protecting Student Athletes’ Economic Freedom Act. This bill clarifies that student athletes are not to be considered an employee of a collegiate institution, conference, or association under federal or state law.

"I look forward to discussing her legislation, which is critical to ensuring the viability of college sports long term, especially in protecting non-revenue, women’s, and Olympic sports.

"Additionally, I’m drafting legislation to eliminate draft age eligibility restrictions in Collective Bargaining Agreements between professional sports leagues and players’ unions. It is my hope that this legislation would provide clarity that student-athletes are not employees of their universities by providing them an alternative path to compensation outside the collegiate system. 

"The world of college sports is in a transformational period, and there is still uncertainty about the landscape moving forward. But it is my hope that my colleagues on this Committee, working with our colleagues on other committees, can work together to find solutions that ensure the future of college sports.

"We have an excellent witness panel assembled to give us perspective on all these questions, and I am looking forward to hearing from them."

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