AB 1034 provides clarity around NIL policies, offers limited financial flexibility tied to existing athletic facility obligations, and ensures that Wisconsin Athletics can compete on equal footing.
Tim Sheehy
| Special to Milwaukee Journal Sentinel
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- Wisconsin’s Assembly Bill 1034 aims to modernize state law to reflect new NCAA rules on athlete compensation.
- The bill would relieve several state universities of $15 million in athletic facility debt to reinvest in athletic programs.
- Proponents argue the legislation is necessary for Wisconsin universities to compete with peer institutions in other states.
- Wisconsin athletics reportedly generate over $750 million in statewide economic impact annually.
Let me put my bias, or experience up front. I was a student athlete at the University of Wisconsin-Madison, and was fortunate to have one of my sons graduate as a far better student athlete.
I am writing in support of Assembly Bill 1034, which modernizes Wisconsin law to reflect the realities of today’s college athletic landscape, not because of those past “glory days,” but because college athletics has changed more in the past three years than in the previous three decades.
New national rules now see universities sharing millions of dollars annually with student-athletes through revenue sharing and name, image, and likeness (NIL) opportunities. Other states have responded quickly, updating their laws to ensure they can compete in this new environment.
Making sure Wisconsin doesn’t fall behind
The State Assembly, with overwhelming bipartisan support, passed AB 1034, now it’s up to the Wisconsin State Senate to pass this legislation and send it quickly to Gov. Tony Evers to ensure Wisconsin doesn’t fall behind.
AB 1034 provides clarity around NIL policies, offers limited financial flexibility tied to existing athletic facility obligations, and ensures that Wisconsin Athletics can compete on equal footing with peer institutions across the country. In a measured way, the bill would relieve UW-Madison, UW-Milwaukee, and UW-Green Bay of $15 million of debt related to athletic facilities with the expressed purpose that those dollars would instead be used to invest in athletic programs.
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This legislation is critical for two inter-connected reasons, competition and economic impact.
At a recent capitol hearing, UW-Madison Director of Athletics Chris McIntosh explained that 80 percent of the entire athletic department budget is generated by the football program. That revenue underwrites the competitive commitment to the other 11 men’s and 12 women’s varsity teams, supporting some 600 student athletes.
The capacity for this to continue is threatened by $20 million in new annual name and likeness costs that impact all NCAA schools. An expense that will continue to rise. In addition, peer institutions in the Big Ten and across the country are committing substantial additional resources to these NIL efforts. In short, without this debt support, the university and its athletes will not only lose an even playing field, they may lose the ability to get on the field.
This threat from the changing nature of NCAA athletics also poses a threat to the economic impact from college athletics. A recent study found that nearly 2 million visitors came to campus events annually, generating more than $750M in statewide economic impact from Wisconsin athletics. Case in point, each home football game produces a $19M economic impact, with 5,600 jobs in the state tied directly or indirectly to the department’s activities.
This bipartisan legislation is not about propping up a single sport. It’s about protecting broad based opportunities for all our student-athletes, some of whom we just watched win a gold medal for the U.S. women’s’ hockey team.
Athletics are often noted as the front door to the university, but I would broaden that opening to the State of Wisconsin. Our public university system success strengthens enrollment, attracts the talent that drives our prosperity, and serves as a sustaining way forward for our economy.
Bill provides measured and responsible investment
As the former head of one of our state’s largest business groups, I have spent much of my career engaged in economic development. I know what generates “return on investment.” AB 1034 provides a measured and responsible investment that will generate a positive impact for Wisconsin taxpayers, citizens, and employers.
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NCAA athletics has changed, and Wisconsin must change with it, or sit on the sidelines. So let’s encourage the Wisconsin State Senate to pass AB 1034 and put Wisconsin in position to compete on the field which provides a win for our student athletes and all of us who benefit from a world class university system.
Tim Sheehy is a UW-Madison graduate and former student athlete. Sheehy served as the president of the Metropolitan Milwaukee Association of Commerce for more than 30 years where he oversaw economic development and business attraction for the region.
