SC Senate weighs bill to shield revenue-sharing contracts from public records

COLUMBIA, S.C. (WCSC) — South Carolina college athletic directors faced questions Wednesday from state lawmakers over whether public money is funding multimillion-dollar revenue-sharing deals between universities and athletes.

The two-hour hearing at the State House came after a bill that would remove those deals from public records requests stalled last week.

Colleges can now pay athletes up to $20.5M per year

Colleges can now pay student-athletes up to a total of $20.5 million dollars a year through revenue sharing from sources such as media deals and ticket sales.

“It is safe to say we have officially entered into the era of student athlete and player compensation,” Jeremiah Donati, the University of South Carolina’s athletic director, said.

Athletic directors deny use of state funds

University officials repeatedly denied using public funds in the revenue-sharing deals. Clemson University Athletic Director Graham Neff addressed the question directly.

“I want to state this plainly — no appropriated state funds have been used to make NIL payments or revenue sharing payments to Clemson student athletes,” Neff said.

Donati warned that making the deals public could affect recruiting.

“It would allow competing institutions to identify, target, and potentially outbid our institutions for athletes, as we would be the only schools cross-country required to disclose such,” Donati said.

Senate majority leader pushes back

Senate Majority Leader Shane Massey, (R) Edgefield, questioned whether the money involved is truly private.

“What we’re talking about is not private money — and I understand why you would argue that it is, but it’s not private money, it’s not private contracts — because if they were private contracts or private money, we wouldn’t have a need for the bill,” Massey said.

Sen. Richard Cash, (R) Anderson, said he remained unconvinced by the denials.

“I don’t know that I can be won over on the argument that there’s no state money that’s been appropriated being involved when money is just being put into various accounts to satisfy technicalities,” Cash said.

Sen. Ross Turner, (R) Greenville, acknowledged the officials’ responses on the core question of taxpayer funding.

“Are taxpayer dollars being spent to pay athletes? I think y’all have answered that question clearly — they’re not, to me,” Turner said.

What comes next

The Senate is expected to hold a full floor vote on the bill at some point this week. If passed, it will head to Gov. Henry McMaster’s desk, where it faces an uncertain future. McMaster does not support paying student-athletes as a concept, but also doesn’t want to create a competitive disadvantage for in-state college athletic programs.

Reason for the bill

A judge put a pause on a FOIA lawsuit decision after a South Carolina resident filed one looking to see what athletes are making through revenue sharing.

The House already passed the bill.