Michigan Rebels Against NCAA With New Bill To Block NIL Crackdown

The newly approved House settlement against the NCAA is already seeing an aftermath. Michigan has introduced a new bill to block NIL crackdown.

The newly approved NCAA vs. House settlement has created implications throughout college sports. Now, the state of Michigan is getting involved. Michigan has seen a bill introduced that could potentially target part of the agreement regarding NIL and reporting deals with the NCAA and investigate them.

Reps first introduced House Bill No. 4643. Tate, Herzberg, and Rheingans last week. This bill would completely ban reporting incoming deals to the NCAA. On top of that, it would also stop schools from assisting in any investigation and ban athletic associations from penalizing athletes or schools for non-compliance.

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Michigan Goes Back At NCAA With New Bill To Block NIL Crackdown

While the settlement between the NCAA and the House was known for allowing revenue sharing, there’s so much more to it than just that. Among other agreements to try and shape the future of college athletics was that NIL deals above $600 will need third-party approval.

To make this happen, the deals will be sent to a new clearinghouse called “NIL Go.” Deloitte is set to oversee the fair compensation ranges in that regard. From there, the House settlement will also establish a new enforcement agency called the College Sports Commission. It’s going to be their job to handle investigations into improper deals done outside the system that the settlement is seeking to establish.

For the state of Michigan, they fired back at the NCAA with a new bill. In their proposed bill, the third-party approval and the latest enforcement agency would be directly affected if this bill were to be signed into law.

Michigan has five FBS programs, including its two Big Ten schools, Michigan and Michigan State. The Wolverines have been a powerhouse in college football and won a national championship as recently as the 2023 season.

Earlier in the year, the ACC, Big 12, Big Ten, and SEC each presented their member institutions with affiliation agreements. These agreements would prevent universities from using state laws to violate new enforcement rules. The price for not signing on to these agreements could also be very steep.

In layman’s terms, a school risks losing conference membership and participation against other power league programs. Conference administrators have used this tactic to, hopefully, enforce the House settlement regardless of the laws in place.
KEEP READING: Analysts Expose Harsh Truth About House v. NCAA’s Effect On NIL Deals and College Football Bluebloods
This is similar to a bill passed in Tennessee back in May. This was considered to be a very athlete-friendly law and shares some unique similarities with the one being brought forward by representatives in Michigan.

Tennessee law states that Tennessee schools can receive dollars from collectives unless told otherwise by federal law, a valid court order, or antitrust laws. This law also prevents the NCAA from creating anticompetitive restrictions and seeks to protect Tennessee schools from any potential further legal disputes.

Like the bill in Michigan, it was a pushback to the House settlement. In particular, they both appear to seek to stop all of the House settlement’s limits on NIL payments. They are both creating protections for schools from outside investigators.

What will come next from this proposed bill in Michigan remains to be seen. It must be passed and signed into law before the fallout begins to be felt. It should also be interesting to see if any other states follow Tennessee and Michigan’s lead.

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