Key Highlights
- Michael Baumgartner, R-Wash., filing the Protect College Sports from Private Equity and Foreign Influence Act, or PROTECT Act, in early October.
- But the news from the University of Utah last week appeared to reignite the conversation. AdvertisementAdvertisementAdvertisement“Congress will be taking a hard look at the tax exempt status of universities that enter into private equity deals,” Baumgartner said in a post on X directly responding to the announcement.
- “If you want to act like a non-public entity, you better be ready to be treated like one.”The PROTECT Act would amend the Title IV Program Participation Agreement that would prohibit agreements with private equity groups that own or share in athletics revenue, exercise control over athletics decisions, or hold any financial interest in the athletics facilities or property.
- This would apply to athletic conferences and affiliated groups, including media, name image and likeness approval decisions and marketing teams. The bill would carve out some exceptions such as gifts and endowments from donors, fee-for-service contracts that do not leverage sports programs, and traditional bank loans and bonds for operations. The proposal was referred to the House Education and Workforce Committee shortly after it was introduced, and the panel is “actively examining” the issue of private equity in college sports, according to a spokesperson.
- It’s not yet clear when the bill could be advanced. AdvertisementAdvertisementAdvertisementUtah Rep.