The NCAA model is facing a serious problem with its business model after California governor Gavin Newsom signed into law the Fair Pay to Play Act, which says colleges in California cannot punish their athletes for collecting endorsement money.
The law in in direct opposition to the NCAA’s model of restricting athletes’ ability to profit off their own likeness, and college sports’ organizing committee campaigned hard against the bill.
“Colleges reap billions from student athletes but block them from earning a single dollar,’’ Newsom said. “That’s a bankrupt model.
“I just signed the Fair Play to Pay Act—making California the first state to allow student athletes to profit off their name, image, and likeness.’’
The signing was hosted Monday morning by NBA legend LeBron James and his multi-media platform, The Uninterrupted. James tweeted the bill will “change the lives of countless athletes who deserve it!’’
The NCAA, in response of Newsome’s signing of the bill, said it would continue its efforts to make adjustments to rules that are both “realistic in modern society and tied to higher education.
“As more states consider their own specific legislation related to this topic, it is clear that a patchwork of different laws from different states will make unattainable the goal of providing fair and level playing field for 1,100 campuses and nearly a half million student-athletes nationwide.”
Advocates of the new law say Newsom’s approval marks the most significant step in the decades-long battle to create new compensation options for NCAA student-athletes. The law, which is scheduled to go into effect in Jan. 2023, does not require schools to pay athletes directly as employees. Instead it makes it illegal for schools to prevent an athlete from making money by selling the rights to his or her names, image or likeness to outside bidders.
The law also allows for college athletes to hire a licensed agent to represent them. The bill was amended several times, including a recent provision that prevents athletes from signing endorsement deals that conflict with their team’s sponsors, meaning a player could not wear Nike products during team events if he plays for a school sponsored by Under Armour.
Outspoken professional athletes in California like Draymond Green of the NBA Warriors and Richard Sherman of the NFL San Francisco 49ers were adamant in their support of this new world.
“Someone needs to force this dictatorship to change because that’s exactly what it is,’’ Green said. “It’s no different than any country run by dictators. The NCAA is a dictatorship.’’
“I really hope it destroys the NCAA in general because I think it’s corrupt and it’s a bunch of people taking advantage of kids, and doing it under the mask of fair play,’’ Sherman said. “Even the things they’re suspending these kids are ridiculous. You’re suspending kids for YouTube channels and they’re saying, ‘Oh, it’s because other kids can’t do it.’’
