U.S. Representative Michael Baumgarten (R-Wash.) has introduced an amendment to the Higher Education Act of 1965 that would cap the amount colleges can pay coaches.
The "Correcting Opportunity and Accountability in Collegiate Hiring (COACH) Act" would make it so that Athletic department employees would not be able to receive total compensation — including annual salaries and buyouta — worth more than 10 times a school’s tuition and fees for undergraduate students in the most recent academic year.
According to On3, the bull would also create an antitrust safe harbor to allow such a cap.
The bill has no been referred to the Committee on Education and Workforce.
“Institutions participating in programs under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.) receive substantial Federal support and tax advantages, creating a heightened obligation to manage athletics in service of educational priorities and equal opportunity,” the bill reads.
“Escalating compensation and buyouts for athletics personnel can divert resources from academic priorities and broad-based opportunities, including women’s and Olympic sports, and warrant reasonable, uniform guard rails as a condition of title IV participation.”
Under the bill, employment contracts executed before the bill's execution would be allowed to continue for their remaining original term (excluding extensions or renewals), provided that the agreement and scheduled payments are disclose and do not exceed the amounts stated in the agreement.
