California Signs Bill Allowing College Athletes to Profit

California allows college athletes to make money from their image or name. (Wikipedia)

Governor Gavin Newsom (D-CA) signed a bill on September 30 creating a path for college athletes to profit from their “name, image, or likeness.” The bill bars California schools from removing student-athletes’ scholarships or eligibility for accepting endorsements or signing agents. This law will take effect in 2023.

California is the first state to introduce legislation on this matter, setting up a potentially contentious legal battle with the National Collegiate Athletic Association (NCAA). 

The NCAA has endured harsh criticism over the past years because of its policy of not compensating student-athletes despite its growing economic success. Last year alone, the NCAA reported over $1 billion dollars in revenue, 80 percent of which came from television and marketing rights fees. 

After signing the bill, Newsom said, “Colleges and universities reap billions from these student-athletes’ sacrifices and success but block them from earning a single dollar.” 

The NCAA holds firm on its position that compensation of college athletes would blur the difference between professional and amateur athletes. The organization has also noted fear that California schools will have a distinct recruiting advantage over the rest of the country.

The NCAA released a statement saying that “changes are needed to continue to support student-athletes, but improvement needs to happen on a national level through the NCAA’s rules-making process.” 

Numerous star athletes and sports journalists voiced their concerns about the NCAA in light of the new bill. Outspoken football player Richard Sherman criticized the NCAA, saying, “I hope [the bill] 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 a mask of ‘fair play.’” 

Basketball superstar Lebron James vocalized his support for the bill in a tweet: “@gavinnewsom came to The Shop to do something that will change the lives for countless athletes who deserve it!” 

The author of the bill, Senator Nancy Skinner (D-CA), sees this as a win for female athletes who have more limited opportunity for monetization after college. 

The NCAA stated that it will continue to explore options that allow athletes to receive compensation. It currently allows certain athletes to receive compensation. Tennis players and Olympians both can keep earnings from competition. Many athletes also receive school-funded stipends for living expenses.