California could become the first state to allow its NCAA athletes to hire agents and profit from their likeness with endorsement deals. They’d be allowed to do so as long as they do not conflict with their school’s current endorsement deals, and the bill would stop colleges and the NCAA from banning athletes who do profit from their own endorsements.
The Fair Pay to Play Act recently passed unanimously in both chambers of the California state legislature, according to the Associated Press. It even received an endorsement from NBA superstar LeBron James and now, it is up to Gov. Gavin Newsom to take action on the legislation. Newsom has not indicated what he plans to do, but it would be cowardly for him to not sign the legislation, and for state governments around the country to not follow California’s lead.
This is one of those (very) rare instances where California politicians are correct. College athletes ought to be able to profit from their own likenesses, especially given how much money other people are making off of their careers.
Such a system would give universities in California a competitive edge when it comes to recruiting for sports such as football and basketball, likely leading to more revenue. It could also generate interest and revenue for other sports, including many on the women’s side, where there are numerous Olympic athletes who are also college athletes.
Although most NCAA athletic departments are subsidized, such a system would allow popular athletes on teams to receive something for their contributions.
As it stands, NBA prospects must be one year removed from high school, and NFL prospects must be three years removed before they are eligible for their league’s respective drafts in most cases. Since the options are limited as to where they can play in that time frame, they might as well try to make as much money as possible playing the sport while they create revenue for their schools. Currently, the NCAA’s Olympic athletes are allowed to accept their earnings from that competition and tennis players are able to take up to $10,000 in prize money if they compete in a tournament.
As the AP points out, the NCAA has expressed openness in allowing athletes to take endorsement deals. However, the organization sent California a letter threatening to eventually kick every school in the state out of the NCAA if they enact their proposed law. It argues the bill is unconstitutional and violates the Commerce Clause. Democratic State Sen. Nancy Skinner countered by telling the AP it was a, “hollow threat,” adding, “this is meant to scare us.”
Plus, if every state were to pass such a law then surely, the NCAA could not ban every school. If a legal fight ensues because of this action, so be it. North Carolina Republican Rep. Mark Walker introduced the Student-Athlete Equity Act earlier this year with similar intentions at the federal level, so perhaps that could pass if the courts decide California cannot make the rule themselves.
The president of the NCAA makes $2.9 million annually and student fees subsidize athletic departments, so its stranglehold on its players earning potential while is a serious injustice. Thankfully, California legislators are working to right it.
Tom Joyce (@TomJoyceSports) is a freelance sports writer and a contributor to the Washington Examiner’s Beltway Confidential blog.
