Republican lawmakers in the Florida Legislature have introduced two bills this session seeking to further regulate the sports agency industry. The bills also aim to ease restrictions on certain criteria for student athletes at the high school level while also regulating other areas.
Rep. Yvette Benarroch (R-Collier) filed HB 981, titled “Athlete Representation and Compensation,” in February. The bill seeks primarily to restrict athlete agents from receiving more than 5% of a student athlete’s compensation derived from the use of the student’s name, image or likeness through contracts.
In a statement, Benarroch explained that she filed the bill in reflection of her conservative views on the economy and free markets.
“I believe in personal responsibility, free markets, and ensuring fair play in all aspects of business- including college athletics,” Benarroch said. “Unfortunately, some agents have taken advantage of these young athletes, charging outrageous fees — sometimes up to 30% of their earnings — which strips them of the rewards they’ve rightfully earned through their talent and hard work.”
HB 981 prohibits the Florida High School Athletic Association from requiring that high school athletes register their compensation with them or any of its member schools or other entities.
The bill also enables high school student athletes to earn compensation from the use of their name, image or likeness. Those under 18 would need parental approval. However, the bill will also prohibit student athletes from engaging in deals or contracts connected to certain types of products and services, including adult entertainment, alcohol, tobacco, controlled substances and gambling.
The bill also defines restrictions on the involvement of a “name, image, and likeness collective” in various activities while emphasizing compliance with all applicable laws.
The bill requires that student athletes consult with registered advisers overseen by school authorities while requiring the necessary parental consent for advising minors. Public high schools would also have to maintain a list of registered advisers under the law and recommend educational resources to student athletes on financial literacy and contractual issues.
HB 981 is favored well within the House subcommittees it has been introduced in. Members in the Industries and Professional Activities subcommittee voted 15-1 in favor of the bill on Wednesday.
Most members of the committee saw the bill as a win for not only athletes but for coaches and athletic directors. Rep. Judson Sapp (R-Clay, Marion, Putnam, St. Johns) said that the bill provided answers and would better help student athletes and coaches navigate NIL.
The one dissenter, Rep. Fiona McFarland (R-Sarasota), believed that capping the agent fees at five percent would hurt Florida’s competitiveness in the market.
“I don’t want Florida athletes to suffer … if we stifle the marketplace in Florida,” McFarland said during the committee meeting.
HB 981 then moved to the Education and Employment committee where all members voted in favor of the bill.
A similar bill, SB 1584, titled “Agents of Student Athletes,” was filed by Sen. Corey Simon (R-Tallahassee) in February.
In addition to capping agents’ compensation at 5%, the bill also requires agents representing high school student athletes to be licensed through the Department of Business and Professional Regulation and instructs them to incorporate licensed agents into its existing licensing portal.
SB 1584 has been referred to the Appropriations Committee on Agriculture, Environment, and General Government; Fiscal Policy.