NIL: How Third-Party Businesses Exploit Collegiate Student-Athletes with Impunity

While there are numerous state NIL (name, image, and likeness) laws protecting student-athletes from economic exploitation, there is no federal law which offers universal protection, nationwide, to student-athletes. State NIL laws offer some protections for student-athletes from exploitation by colleges, universities, and boosters, but there is no protection for student-athletes who sign NIL deals with for-profit third-party businesses. These NIL deals, between the student-athlete and third-party businesses, make up the majority of NIL agreements. Section 6 of the proposed College Athlete Economic Freedom Act (“CAEFA”), titled “Enforcement Provisions,” aims to codify federal protection for student-athletes against colleges, universities, and boosters, yet leaves student-athletes unprotected from for-profit, third-party businesses. Student-athletes, primed to fall victim to deceptive business practices by these companies by signing away their present and future NIL rights, are without recourse while third-party businesses operate with impunity. Section 6 of CAEFA should apply to third-party businesses as well as colleges, universities, and boosters because student-athletes should have universal protection against exploitation and control over their NIL rights.