Senate hears bill to bar some private‑equity deals in public college athletics amid competing views on oversight

Senate Bill 6,235 drew a staff briefing and debate over balancing institutional flexibility and legislative oversight. Kelly Gunn summarized the bill as a prohibition on agreements with private capital firms or sovereign wealth funds that transfer ownership or revenue from intercollegiate athletics or grant investors rights over branding, scheduling, personnel, student participation, licensing, merchandising, facilities, or related real property.

"The bill before you prohibits public baccalaureate institutions and the community and technical colleges with intercollegiate athletic programs from entering into an agreement with a private capital firm or sovereign wealth fund that transfers ownership or revenue," Kelly Gunn said during the staff briefing.

Sponsor Senator Jeff Holy (6th District) told the committee that deals like the one recently reported in another state could create new entities with control over sponsorships, ticketing and university trademarks and argued that legislative oversight is appropriate for state agencies. "With that equity interest comes control," Holy said, warning that private interests could reduce student seating or shift athletic priorities.

University witnesses who testified later in the hearing urged caution. Chris Mulick (WSU) and Morgan Hickel (University of Washington) said their institutions do not currently have such private‑equity agreements but argued the bill could put Washington institutions at a competitive disadvantage and constrain nationally negotiated conference arrangements. "We ask that decisions on financial agreements be made at the national level to ensure consistency and parity," Hickel said.

The bill includes exceptions listed in the bill report and a fiscal note was requested. Committee members discussed the scope of prohibited transactions and the prospect of committee amendments to allow legislative review without unduly restricting institutions. No vote was taken during the hearing.