No Elite Athletes Using X-pro status to ensure Prioritizing Recruitment Of Student-athletes (NEAUX PROS) Act

In this Act:

(1) Covered institution. The term covered institution means an institution of higher education (as defined in section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002)) that has entered into a program participation agreement under section 487 of that Act (20 U.S.C. 1094).

(2) Covered sport. The term covered sport means a sport in which a covered institution sponsors a varsity intercollegiate athletics team.

(3) Intercollegiate athletics competition. The term intercollegiate athletics competition means participation, as a member of a varsity team representing a covered institution in a covered sport, in organized practice or competition against another institution of higher education, whether or not the individual receives athletically related student financial assistance.

(4) Professional sports contract

(A) In general. The term professional sports contract means a binding contract, express or implied, between an individual and a professional sports team, league, club, or other organization that organizes or sanctions professional-level competition in a sport, under which the individual is entitled to receive a salary, signing bonus, or other compensation in exchange for the individual’s athletic services in that sport.

(B) Exclusions. The term does not include—

(i) an agreement relating solely to the use of an individual’s name, image, or likeness that does not obligate the individual to render athletic services to a professional sports team, league, club, or organization; or

(ii) compensation paid to the individual directly by a covered institution, including compensation paid under a revenue-sharing arrangement permitted under the settlement approved in In re College Athlete NIL Litigation (N.D. Cal.) or successor authority, or under any Federal statute enacted after the date of enactment of this Act that expressly authorizes such compensation without loss of intercollegiate athletics eligibility.

(5) Professional athlete. The term professional athlete means, with respect to a covered sport, an individual who is a party to a professional sports contract for that covered sport and who has not rescinded that contract in accordance with section 5(a).

(6) Covered athletics official. The term covered athletics official means, with respect to a covered institution, an individual who, as an employee or agent of the covered institution (including a head coach, assistant coach, athletic director, general manager, or other athletics department staff member), has authority to recruit prospective student-athletes, extend an offer of athletically related student financial assistance, sign a prospective student-athlete to a National Letter of Intent or substantially equivalent instrument, or certify the eligibility of a student-athlete to compete in intercollegiate athletics competition, or who knowingly directs or authorizes another person to take any such action.

(7) Secretary. The term Secretary means the Secretary of Education.