Not for Sale: Baumgartner Introduces Bill to Stop Hedge Funds from Carving Up College Sports
WASHINGTON- Congressman Michael Baumgartner (WA-05), chair of the bipartisan College Sports Caucus and Vice Chair of the Higher Education Subcommittee of the Education and the Workforce Committee, introduced H.R.5693, the PROTECT Act, to prevent private equity from taking control of college sports or leveraging future athletics revenues and other assets as collateral for private and foreign investors.
The announcement follows reports that a major conference is considering a multi-billion-dollar private equity deal tied to a new commercial arm and extended grant-of-rights.
“College sports serve an educational mission—and they’re sustained by billions in annual public subsidies and tax advantages,” said Congressman Baumgartner. “Assets under the control of universities should be managed in service of that public, educational mission—not carved up as a new asset class for private equity, hedge funds, or foreign sovereign wealth funds. My bill draws a bright line: schools and conferences shouldn’t sell, pledge, or outsource control of their core athletics revenues or operations to outside financiers. If we want to keep opportunities broad for student-athletes—especially women’s and Olympic sports—we can’t mortgage their future to the highest bidder.”
“Colleges aren’t pro franchises,” Baumgartner added. “They’re stewards of a public trust. The money always comes with strings—and the cuts hit the sports and opportunities that matter most in our communities.”
Key Provisions of the PROTECT Act:
Amends the Title IV Program Participation Agreement (PPA) under the Higher Education Act to prohibit agreements with private equity, hedge funds, or foreign sovereign wealth funds that:
Share or pledge core athletics revenues or media rights;
Grant governance or control over athletics operations;
“Park” rights in joint ventures or real estate vehicles that dilute institutional control;
Or otherwise allow financiers to direct or operate college sports programs.
Applies to conferences and affiliated entities, including media and marketing arms and NIL clearinghouses, when they function as athletics affiliates.
Closes loopholes that could allow off-balance-sheet maneuvers designed to circumvent these restrictions.
Exemptions Include:
Gifts and endowments from donors;
Ordinary fee-for-service vendor contracts (ticketing, security, travel, production) that do not leverage the assets of college sports programs;
Routine marketing sponsorships and advertising arrangements;
Traditional bank loans and public bonds for facilities or operations, provided they do not pledge core media rights or grant control to prohibited entities.
Media-driven realignment, rising costs, and the transition to athlete revenue-sharing are pressuring budgets across Division I. Short-term cash infusions tied to outside equity stakes and revenue pledges risk core athletics assets and narrows opportunities for non-revenue sports.
You can find the bill text here.