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House advances bill to shield university revenue‑sharing payouts from public disclosure
Summary
The South Carolina House gave House Bill 4902 a 111–2 second‑reading vote Jan. 15, advancing language that would treat NCAA‑mandated revenue‑sharing payments as private funds and limit public‑records access; supporters cited a pending lawsuit and safety/competitive concerns, opponents pressed FOIA and accountability questions.
The South Carolina House voted 111–2 on Jan. 15 to advance House Bill 4902 in a recorded second‑reading vote, moving the measure to a third reading scheduled for tomorrow. The bill’s sponsor, Representative Hyatt, told colleagues the bill clarifies that funds mandated by the NCAA for revenue sharing — a pot the NCAA set at up to $20,500,000 per institution — are private dollars, not state funds, and therefore should not be subject to public‑records disclosure.
Hyatt said the legislation is time‑sensitive because a lawsuit pending in state court could compel universities to disclose donors’ and athletes’ names and the amounts paid. "It is private dollars," Hyatt said, urging members to send a message to the courts that the legislature considers those records nonpublic. He also warned that detailed public disclosures of individual payouts could prompt bidding wars that would drive athletes out of state programs.
Opponents pressed for accountability and transparency. Representative Hart questioned the carve‑out from Freedom of Information Act (FOIA) rules, noting the University of South Carolina raised $260 million in private gifts in 2025 and asking why those private donations should be exempt from public scrutiny in the case of NIL or revenue sharing. "Why are we going to carve out this exception for NIL money?" Hart asked, saying the issue is more complicated than presented.
Members debated alternatives for verification, with some noting the NCAA clearinghouse requires an annual aggregated report of revenue‑sharing totals (not position‑level payouts). Representative Magnuson and others sought clarity on whether any accountability mechanism beyond FOIA would remain if the bill passed; Hyatt pointed members to people he had contacted and the NCAA reporting process as sources of verification.
Representative McGinnis suggested the House draft a resolution for Congress and the NCAA seeking uniform national rules. Representative Bamberg supported the confidentiality approach, saying public disclosure of individual payouts could expose players and their families to extortion or danger.
After debate the clerk reported a recorded vote of 111 to 2 on second reading. Representatives Hyatt and Newton requested unanimous consent to give the bill a third reading tomorrow; no objections were heard. The bill’s second‑reading passage will be followed by a third reading on the next calendar day.
The House’s action is procedural; the bill has not yet become law and may be further amended before final passage or implementation.
