The California State Assembly has voted unanimously in favour of permitting college athletes to earn money from signing endorsement deals, in a move that could have far-reaching implications for the business of college sport.
State lawmakers voted 72-0 in support of bill SB206, also known as the Fair Pay to Play Act, which states that college athletes in California should be allowed to profit from the use of their name, image and likeness.
The landmark move is the latest challenge to the National Collegiate Athletics Association’s (NCAA) long-held yet controversial policy of amateurism. NCAA rules dictate that student-athletes cannot earn money from commercial contracts while representing a member school.
That policy has proved hugely contentious given the NCAA, which operates as a non-profit organisation, generates over a billion dollars in revenue each year. The body has, however, set up a working group to explore potential modifications to its amateurism rules, with a report expected to be released next month.
Earlier this year, NCAA president Mark Emmert wrote to California state legislators asking them to delay consideration of the bill until after the body completes its review, yet his request fell on deaf ears.
“The NCAA Board of Governors has monitored SB 206 as it has moved through the California legislative process,” the NCAA said in a statement following Monday’s ruling. “As we evaluate our next steps, we remain focused on providing opportunities and a level playing field for the nearly half a million student-athletes nationwide.”
The Fair Pay to Play Act is an amended version of an original bill passed in May. If the new bill is approved by California's Senate, a formality that could come as early as next week, it will then require sign-off from state governor Gavin Newsom, who would have 30 days to green light or veto the amended bill.
If approved, the law would come into effect on 1st January 2023. College athletes in California would then be able to sign endorsement deals and licensing contracts, while they would also be permitted to hire state-licensed agents for representation.
According to USA Today, athletes would not be allowed to sign deals that conflict with a school contract, while schools would be prohibited from restricting athletes from using their name, image and likeness for commercial purposes.
While this week’s ruling has the support of many prominent figures, including basketball great and long-time NCAA critic LeBron James, it also puts California’s colleges in a perilous position.
Everyone is California- call your politicians and tell them to support SB 206! This law is a GAME CHANGER. College athletes can responsibly get paid for what they do and the billions they create.
— LeBron James (@KingJames) September 5, 2019
If the act is signed into law, for example, state schools could be barred from participating in NCAA championships, which would dramatically restrict their ability to generate revenue and attract top athletic talent.
California currently boasts more than 20 NCAA division one schools, including four that compete in the Pac-12 Conference, whose commissioner Larry Scott has said he is “firmly against anything that would lead to a pay-for-play system”.
The New York Times reports that similar bills are in the early stages of being considered in state legislatures in Washington and Colorado, while a federal bill has also been introduced by US representative Mark Walker of North Carolina.
The California State Assembly has voted unanimously in favour of permitting college athletes to earn money from signing endorsement deals, in a move that could have far-reaching implications for the business of college sport.
State lawmakers voted 72-0 in support of bill SB206, also known as the Fair Pay to Play Act, which states that college athletes in California should be allowed to profit from the use of their name, image and likeness.
The landmark move is the latest challenge to the National Collegiate Athletics Association’s (NCAA) long-held yet controversial policy of amateurism. NCAA rules dictate that student-athletes cannot earn money from commercial contracts while representing a member school.
That policy has proved hugely contentious given the NCAA, which operates as a non-profit organisation, generates over a billion dollars in revenue each year. The body has, however, set up a working group to explore potential modifications to its amateurism rules, with a report expected to be released next month.
Earlier this year, NCAA president Mark Emmert wrote to California state legislators asking them to delay consideration of the bill until after the body completes its review, yet his request fell on deaf ears.
“The NCAA Board of Governors has monitored SB 206 as it has moved through the California legislative process,” the NCAA said in a statement following Monday’s ruling. “As we evaluate our next steps, we remain focused on providing opportunities and a level playing field for the nearly half a million student-athletes nationwide.”
The Fair Pay to Play Act is an amended version of an original bill passed in May. If the new bill is approved by California's Senate, a formality that could come as early as next week, it will then require sign-off from state governor Gavin Newsom, who would have 30 days to green light or veto the amended bill.
If approved, the law would come into effect on 1st January 2023. College athletes in California would then be able to sign endorsement deals and licensing contracts, while they would also be permitted to hire state-licensed agents for representation.
According to USA Today, athletes would not be allowed to sign deals that conflict with a school contract, while schools would be prohibited from restricting athletes from using their name, image and likeness for commercial purposes.
While this week’s ruling has the support of many prominent figures, including basketball great and long-time NCAA critic LeBron James, it also puts California’s colleges in a perilous position.
If the act is signed into law, for example, state schools could be barred from participating in NCAA championships, which would dramatically restrict their ability to generate revenue and attract top athletic talent.
California currently boasts more than 20 NCAA division one schools, including four that compete in the Pac-12 Conference, whose commissioner Larry Scott has said he is “firmly against anything that would lead to a pay-for-play system”.
The New York Times reports that similar bills are in the early stages of being considered in state legislatures in Washington and Colorado, while a federal bill has also been introduced by US representative Mark Walker of North Carolina.
