California Passes Law to Allow College Athletes to Get Paid

Reviews
California's governor just set into motion what many say will be the end of college sports as we know it. He has signed a bill that will allow student-athletes to profit off of their image. The NCAA will push against this law, fearing unfair recruitment and of course, loss of their money. California looks to set a precedent for all other states to follow to make changes in the NCAA
Common Facts
Content (4)
CNB.
LA Dai.
Yah.
For.
[GOV] "…announced he signed [SB 206], which will allow athletes at California universities to profit from the use of their names, images and likenesses."
"The NCAA, the main regulator of American college sports, strictly prohibits student athletes players from making money in any way from the sports they play. "
"On September 11, the NCAA sent a letter to [GOV] charging that SB206 would upend the level playing field in college sports by giving California schools 'an unfair recruiting advantage,' which 'would result in them eventually being unable to compete in NCAA competitions.' "
[SB 206]"…will not go into effect until 2023."
Definitions (7)
NCAA: National Collegiate Athletic Association
GOV: Governor Gavin Newsom of California
NCAA: National Collegiate Athletic Association
NCAA: National Collegiate Athletic Association
NCAA: National Collegiate Athletic Association
GOV: Governor Gavin Newsom of California
SB 206: Senate Bill 206- Bill from California letting student-athletes get paid.
Review Info (3)
First Published: 10/01/2019 02:31:08 am
Last Updated: 11/30/-0001 12:00:00 am
Original Front Page Link
CNBC
Content (11)
"California Gov. Gavin Newsom signed a bill Monday allowing college athletes to get paid for endorsement deals."
"This bill defied collegiate athletic leaders who say the change could upend amateur sports."
"'Colleges and universities reap billions from these student-athletes’ sacrifices and success but block them from earning a single dollar,' the Governor said in a statement. 'That’s a bankrupt model — one that puts institutions ahead of the students they are supposed to serve.'"
[NCAA] "…said in a statement that it agrees changes are needed but that improvement needs to happen on a national level."
" 'Unfortunately, this new law already is creating confusion for current and future student-athletes, coaches, administrators and campuses, and not just in California,' the NCAA said in the statement."
The NCAA Also said," '…We will consider next steps in California while our members move forward with ongoing efforts to make adjustments to NCAA name, image and likeness rules that are both realistic in modern society and tied to higher education.' "
"The organization’s Board of Governors sent a letter to Newsom earlier this month saying that the bill 'would upend level playing field for all student-athletes.' "
"The NCAA appointed a working group earlier this year to consider changes to its policy."
"The bill gained attention from celebrity athletes such as basketball player LeBron James, who was with the governor on an episode of HBO’s “The Shop: Uninterrupted” when he signed the bill."
"I’m so incredibly proud to share this moment with all of you. @gavinnewsom came to The Shop to do something that will change the lives for countless athletes who deserve it! @uninterrupted hosted the formal signing for SB 206 allowing college athletes to responsibly get paid. -LeBron James on Twitter."
" 'While our student-athletes struggle to get by with basic necessities such as food and clothing, universities and the NCAA make millions off of their talent and labor,” Bradford said in a statement. “College coaches are now some of the highest paid employees in the country because of the talented young men and women who play for them.' "
Article Info (4)
Date Published: 09/30/2019 01:05:00 pm
Date Accessed: 10/02/2019 10:04:00 pm
Article Author: Mallika Mitra
Click here to see the article
LA Daily News
Content (13)
[GOV] "…tweeted a video of himself signing a bill into law on an episode of HBO’s “The Shop: Uninterrupted.' "
[GOV] "…was seated in a barber’s chair next to NBA superstar LeBron James, chatting with a group of star college athletes about how many college presidents called him and urged him to veto the bill. They all laughed at that."
"But the NCAA’s threat to ban California schools from national competitions wasn’t credible to [GOV]."
“ 'I don’t see them doing that,' [GOV] told reporters. 'They can’t afford to do that. They can’t afford to lose the state of California.' The governor asserted, 'This is a national state, California. This is not a small, isolated state. This is a game changer.' "
"There are 1,100 schools in the NCAA and only 58 of them are in California, so we’ll see."
"Without any doubt, something needs to change in college sports. The NCAA had more than $1 billion in revenue in 2017, and that’s only the beginning. "
"From schools to TV networks to casinos to companies that make athletic gear, people are making mega-money off college athletics, while the athletes themselves get only scholarships and injuries."
"[GOV] said New York, South Carolina, Washington, and Colorado will likely follow California’s lead, but the NCAA warned that 'a patchwork of different laws from different states' will make it impossible to have a 'fair and level playing field for 1,100 campuses and nearly half a million student athletes nationwide.' "
"There could be federal legislation, which would solve the patchwork problem. One proposed bill from Rep. Matt Walker, R-North Carolina, would strip the NCAA’s tax-exempt status if it doesn’t allow players the right to profit from the use of their name, image and likeness."
"In May, the NCAA formed a working group to examine that issue."
"The board of the NCAA says the working group will not consider any type of payment for participation in college sports, but a change in the rules involving publicity rights could be recommended in the group’s report, which is due out this month."
"You’re paying the bill for this pseudo-secession in legal costs. California now has 60 lawsuits against the federal government, and just wait until the NCAA and the state’s universities and colleges start suing each other. We may have to import lawyers to handle the workload."
"So the NCAA might very well ban California schools from national competitions."
Opinion (5)
"The question is whether California is right to pass a law and try to dictate a new policy to the rest of the country."
"California didn’t have to pass a law in order to throw its weight around in this argument and lead the fight for amateur athletes to control and profit from their publicity rights. "
"Unfortunately, the state is so drunk on its own publicity that 'This is a national state' has become its mantra in everything from auto emissions standards to immigration policy, and now to the right to endorse shoes."
"The NCAA does have a point when it expresses concern about the new law’s effect on competition. Star athletes add to the excitement of the games, but if the competition itself isn’t exciting, then the sport will gradually decline in popularity and everybody loses."
"We’ll have to wait to see if California’s declaration of independence ends up hurting the very student athletes that it’s trying to protect. The issue is complicated, and it isn’t made easier when one state declares that it is a law unto itself."
Article Info (4)
Date Published: 10/01/2019 11:43:00 pm
Date Accessed: 10/03/2019 11:00:00 pm
Article Author: Susan Shelly
Click here to see the article
Yahoo
Content (23)
"California [is] becoming the first state to enact a legal right for college athletes to gain compensation for the commercial use of their identities."
"Legislators in other states—including New York, Florida, and Illinois—have already proposed similar legislation while legislators in a half-dozen other states plan to do so as well."
"Meanwhile, members of Congress eye a federal statute as the more appropriate vehicle to address the commercial use of college players’ names, images, and likenesses."
"The sequence in which these complementary, yet also complicating, developments play out will have a significant impact on whether, and when, college athletes reap financial gains."
"As a starting point, California’s Fair Pay to Play Act is now law—and, to date (10/4/2019), the only law on this subject matter."
"The Act is closely inspired by the successful litigation of Ed O’Bannon, a former NBA player and UCLA basketball star. "
"O’Bannon proved that by denying DI men’s basketball and football players the commercial value of their identities, the NCAA violated federal antitrust law."
"For its part, the NCAA adamantly opposes the Act."
This new law effectively obligates California colleges to defy NCAA rules and puts those colleges at risk of expulsion from the NCAA.
"There are also important limitations to the Act, including that athletes lose the Act’s protections should they sign endorsement deals which conflict with school sponsorships or if they hire agents who aren’t licensed by the state."
"Also, the Act shouldn’t be confused or conflated with legal efforts to require colleges to pay their athletes—the Act is about contractual relationships between college athletes and companies that wish to use the players’ names, images, and likenesses."
"Big picture: college athletes in California will soon be able to be paid to sponsor summer camps, endorse local and national businesses and license their personas for the creation of “life-like” avatars in college sports video games."
"Recruiting advantages and other rationales for states to pursue Ed O’Bannon laws."
"If the NCAA permits California colleges to remain in the NCAA in 2023, those colleges would obtain a decisive advantage in recruiting. "
"Another reason is that legislators genuinely believe that college athletes should have some control over the use of their identities."
"Still another reason, as O’Bannon articulated in a recent Sports Illustrated commentary, is that African American college athletes are disproportionately represented in basketball and football, the two sports that generate most of the revenue in college sports."
"In New York, State Senator Kevin Parker (D) has introduced SB 6722A. This legislation, which is currently before the Senate Rules Committee, would take effect immediately if passed by the legislature and signed by Governor Anthony Cuomo (D) into law."
"Similar to California’s Act, Senator Parker’s bill proposes that New York college athletes be able to hire agents and gain compensation for their identity."
"Unlike the Act, the bill would also compel New York colleges to create and fund 'injured athlete' accounts that would provide financial benefits to athletes who suffer career-ending or long-term injuries."
"The legislation further mandates that these colleges set aside 15% of revenue from athletics ticket sales and divides that revenue among college athletes."
"In Florida, State Representative Kionne McGhee (D) has introduced HB 251."
" If the legislative branch passes HB 251 and if Governor Ron DeSantis (R) signs it into law, key provisions would go into effect on January 1, 2023."
"Representative McGhee’s bill is very similar to California’s Act. It instructs that a college athlete must be permitted to earn compensation from the use of their name, image or likeness without any impact on his or her scholarship eligibility. "
Opinion (4)
"The college sports industry is about to enter a volatile and transformative era."
"Their likely pitch to high school athletes: not only would you receive an athletic scholarship at our school, but, unlike at schools in other states, here you could be paid by companies with whom you sign identity-rights deals."
"That competitive advantage is likely one reason why legislators in other states are pursuing their own versions of the Act."
"Although California is first to pass an 'Ed O’Bannon law', it might not be the first to see such a law go into effect."
Article Info (4)
Date Published: 10/04/2019 02:29:00 pm
Date Accessed: 10/04/2019 08:01:00 pm
Article Author: Michael McCann
Click here to see the article
Forbes
Content (12)
"California will let college athletes profit from endorsement deals and hire agents in a plan that could upend the business model of college sports and likely spur legal action. "
[GOV] "himself played baseball at a California university, and said he has 'strong opinions' on the subject."
"The [SB 206] would specifically keep the NCAA from barring a school or student athlete from sports competitions if the athletes are being paid from their names, images or likenesses."
"S[B 206] still prohibits universities from directly paying student-athletes."
" [SB 206] would allow players to not only sign major endorsement deals, but also earn money on the side from part-time jobs like coaching youth sports."
“This is a game changer for student athletes and for equity in sports,” said NBA star Lebron James, a long-time supporter of [SB 206].
"The NCAA has long defended their controversial policy of barring student athletes from being paid despite the big money stakes in college sports."
"In September (2019), the group’s board asked [GOV] to veto [SB 206], calling it unconstitutional."
[SB 206]"…would give California universities an unfair advantage in recruiting athletes, reps said, and could prompt the sports association to bar them from competing altogether."
"According to Forbes, American football’s 25 most valuable university programs earned an average of $1.5 billion in profit over the last three years. In 2017, the NCAA reported revenue of $1.1 billion."
"Democrat State Senator Nancy Skinner, who wrote the [SB 206], said she hopes more states follow California’s lead."
"A New York state senator has already introduced a similar bill, with a stipulation that athletic departments at universities must share 15% of ticket sale revenue with student athletes. "
Opinion (2)
“ 'Every single student in the university can market their name, image, and likeness; they can go and get a YouTube channel, and they can monetize that. The only group that can’t are athletes,' [GOV] said."
“Athletes at every level deserve to be empowered and to be fairly compensated for their work, especially in a system where so many are profiting off of their talents. Part of the reason I went to the NBA was to get my mom out of the situation she was in. I couldn’t have done that in college with the current rules in place.” -Lebron James.
Article Info (4)
Date Published: 09/30/2019 12:17:00 pm
Date Accessed: 10/04/2019 10:30:00 pm
Article Author: Carlie Porterfield
Click here to see the article