Bill > HR5693

This bill aims to protect college sports by prohibiting certain financial agreements between educational institutions and private equity firms or sovereign wealth funds involving intercollegiate athletics. Specifically, the bill would amend the Higher Education Act to prevent colleges from entering agreements that transfer ownership, profit interests, or control rights of athletic programs to private capital firms or foreign state-owned investment funds. The legislation defines these prohibited agreements as those that convey athletics-related revenues, grant control over athletic decisions, or establish joint ventures that provide financial interests in athletic programs. There are some exceptions for fee-for-service contracts, charitable contributions, tax-exempt bond financings, and standard sponsorship agreements. Institutions would be required to annually certify compliance and publicly disclose any agreements, with a transition period for existing contracts. The bill defines key terms such as "private capital firm" and "control rights" broadly, covering hedge funds, private equity funds, and investment advisers. The underlying rationale is to protect the educational mission of college athletics, prevent short-term financial exploitation, and maintain transparency in how publicly supported educational institutions manage their athletic programs and resources.

Education

https://www.congress.gov/bill/119th-congress/house-bill/5693/all-info