ROSEMONT, Ill. (AP) — Big Ten Conference chancellors and presidents approved a rule Wednesday limiting member schools' involvement in arranging third-party NIL agreements in anticipation of the passage of a bill in Congress that would regulate college sports.

The Senate passed the bipartisan Protect College Sports Act by a wide margin Sept. 28 and it now awaits a vote in the House of Representatives, which is scheduled to reconvene Nov. 9. The bill would regulate college sports at a time of skyrocketing athlete payments and near-unrestricted transfers between schools.

The Big Ten rule limits its 18 schools to no more than $27.5 million worth of arranged third-party name, image and likeness agreements for its athletes and another $22 milion in direct revenue sharing for a total capped at approximately $49 million, reflecting the economic framework outlined in the PCSA legislation.

The rule takes effect immediately. The conference said escalating financial penalties and other disciplinary measures will be imposed for any violations.

“While we await the passage of the Protect College Sports Act, which has our full support, it is imperative our member institutions can begin to plan, budget and build their rosters approximating the act’s economic structure," said Indiana University president Pamela Whitten, chair of the Big Ten Council of Chancellors/Presidents. "Our institutions remain in full support of the Protect College Sports Act and this rule not only allows for a much smoother transition into the policies put in place by the act once it passes, but demonstrates our commitment to it.”

The Big Ten said the timing of the rule is intended to guide schools and alert the public about Big Ten institutional constraints in upcoming NIL discussions with athletes. The rule effectively requires Big Ten schools to initiate the financial and operational mechanisms necessary to comply with PCSA limits in advance of upcoming signing and transfer portal windows.

This policy applies to school involvement only. Athletes are allowed to pursue NIL opportunities with any entity on their own.

The Big Ten rule does not replace any existing rules or policies. Big Ten institutions remain subject to all current NCAA rules and College Sports Commission policies, including those regarding valid business purpose, permissible range of compensation and submission and review of third-party NIL agreements.