Sec. 5. Revenue sharing
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The term athletic grant-in-aid limit means, with respect to a particular sport, the maximum number of athletic grant-in-aid scholarships an institution of higher education can award to college athletes in the sport, as prescribed by an intercollegiate athletic association. The term commercial sports NIL revenue , when used in reference to an athletic program, means the amount of total annual revenue generated from the athletic program at an institution of higher education. For purposes of subparagraph (A), an institution of higher education required to submit an annual report under section 485(g) of the Higher Education Act of 1965 ( 20 U.S.C. 1092(g) ) shall use the amounts described in paragraph (1)(F) of such section from the most recent report to determine the commercial sports NIL revenue for each athletic program.
The term covered sports team means an athletic program that participates in a division or subdivision for which 50 percent of the total commercial sports NIL revenue of every institution of higher education that participates in the division or subdivision is greater than the total amount of grant-in-aid provided by those institutions of higher education to eligible college athletes that participate in athletic programs in that division or subdivision. The term division or subdivision means a division or subdivision, such as the Football Championship Subdivision or the Football Bowl Subdivision, of a particular type of athletic program.
The term eligible college athlete means a college athlete that receives grant-in-aid from the institution of higher education attended by the college athlete. Not later than the first July 15 occurring after the date that is 1 year after the date of enactment of this Act, and annually thereafter, if an intercollegiate athletic association that has governing authority over a covered sports team is required to distribute commercial sports revenue royalties to eligible college athletes that participate in the division or subdivision of the covered sports team under paragraph (2), the institution of higher education associated with the covered sports team shall transfer to the intercollegiate athletic association— regardless of whether the institution of higher education awards any grant-in-aid to college athletes that participate on the covered sports team— 50 percent of such commercial sports NIL revenue; minus the amount of grant-in-aid the institution of higher education awards to eligible college athletes that participate on the covered sports team; if the amount of grant-in-aid that the institution of higher education awards to eligible college athletes that participate on the covered sports team is more than 50 percent of the commercial sports NIL revenue generated by the covered sports team, the institution of higher education shall transfer a percentage of such commercial sports NIL revenue determined by the Commission after calculating average contributions made by institutions of higher education of a similar size; and a list of the eligible college athletes that participate on the covered sports team.
Not later than the first August 15 occurring after the date that is 1 year after the date of enactment of this Act, and annually thereafter, an intercollegiate athletic association that has governing authority over a covered sports team shall, if practicable, distribute among every eligible college athlete that participates in the division or subdivision in which the covered sports team participates— the total commercial sports NIL revenue received from institutions of higher education under paragraph
(1)on account of a covered sports team that participates in the division or subdivision; divided by the number of eligible college athletes that participate in the division during the applicable reporting year. An intercollegiate athletic association may distribute a commercial sports revenue royalty to an eligible college athlete under this subsection— directly; or upon the request of the eligible college athlete, through the licensing group of the eligible college athlete. Not later than the first July 31 occurring after the date that is 1 year after the date of enactment of this Act, and annually thereafter, an institution of higher education shall make public and disclose to the college athletes of the institution of higher education— the commercial sports NIL revenue generated by each athletic program of the institution of higher education; and if the institution of higher education has one or more covered sports teams, the amount of the commercial sports revenue royalties distributed to each eligible college athlete on each covered sports team. Not later than the first July 31 occurring after the date that is 1 year after the date of enactment of this Act, and annually thereafter, an intercollegiate athletic association that distributes commercial sports revenue royalties shall make public the amount of the commercial sports revenue royalties distributed by the intercollegiate athletic association, organized by institution of higher education and sport. Section 485(g)(1)(F) of the Higher Education Act of 1965 ( 20 U.S.C. 1092(g)(1)(F) ) is amended by striking except that an institution may also report such revenues by individual team and inserting , in the aggregate and disaggregated by individual team .
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