California allows college athletes sign endorsement deals, defies NCAA

Defying NCAA, California opened way for college athletes to hire nts and make money from endorsement deals with sneaker companies, soft drink makers, car dealerships and or sponsors on September 30, just like pros. first-in--nation law, signed by Democratic Gov. Gavin Newsom and set to take effect in 2023, could upend amateur sports in U.S. and trigger a legal challenge. Newsom and ors cast it as an attempt to bring more fairness to big-money college athletics and let players share in wealth y create for ir schools. Critics have long complained that universities are getting rich off backs of athletes — often, black athletes struggling to get by financially.

“Or college students with talent, wher it be literature, music, or techlogical invation, can monetize ir skill and hard work,” goverr said. “Student-athletes, however, are prohibited from being compensated while ir respective colleges and universities make millions, often at great risk to athletes’ health, acemics, and professional careers.”

NCAA prepares for new changes

Newsom predicted or states will introduce similar legislation. NCAA — which h called on him to veto bill, arguing that it would destroy distinction between amateurs and pros and give California an unfair recruiting vant — said it is considering its next steps. It did t elaborate. In a statement, NCAA said it is working to revise its rules on making money off a player’s name and likeness. But it said any changes should be me at national level through NCAA, t through a patchwork of state laws. California’s law applies to students at both public and private institutions — but t community colleges — in nation’s most populous state. While measure covers all sports, big money is in football and basketball.

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Endorsement deals 

Student-athletes won’t get salaries. But under law, y can’t be stripped of ir scholarships or kicked off team if y sign endorsement deals. re are some limitations: Athletes can’t enter into deals that conflict with ir schools’ existing contracts. For example, if your university has a contract with Nike, you can’t sign with Under Armour. law represents ar instance of California jumping out in front of or states when it comes to social and political change. movement to allow student-athletes to profit from ir labours on court or playing field has been simmering for years, portrayed as a matter of ecomic fairness and civil rights.

“A majority of se athletes, it’s secret, are African American,” said Sen. Steven Brford, a co-author of bill who is black. “It’s an issue of fairness, and it’s an issue that has been long overdue.”

Newsom tweeted a video showing him signing law during a special episode of HBO’s “ Shop: Uninterrupted” alongside NBA superstar LeBron James, one of many professional athletes who have endorsed measure. James, whose 14-year-old son is a closely watched basketball prospect in Los Angeles and will be 18 when law takes effect, exulted over its signing on Instagram, saying it will “change lives for countless athletes who deserve it!”
He ded: “NCAA, you got next move. We can solve this for everyone!” NBA rookie Jordan Poole of Golden State Warriors also welcomed new law. Six months ago, as a player at University of Michigan, he hit a game-winning shot at buzzer in second round of NCAA tournament as millions watched on TV. “I kw for sure I would have been using my name after that Houston shot,” he said. His teammate, three-time NBA champion Draymond Green, went furr.

“ NCAA is a dictatorship,” former Michigan State star told reporters Monday. “I’m tired of seeing people get ripped off, and I’m tired of seeing se college athletes being ripped off.”

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NCAA threatens to bar California universities from competitions 

Before goverr signed law, NCAA threatened to bar California universities from competition, meaning powerhouses such as University of Sourn California, UCLA, Stanford and University of California, Berkeley, could find mselves banned. If that were to happen, California schools could form a new governing body and get schools from like-minded states to join, in a threat to NCAA’s dominance. But goverr, a former college baseball player, said he doubts NCAA would kick California schools out, arguing that state’s 40 million people and status as world’s fifth-largest ecomy make it too big to lose.

NCAA “can’t afford to do that,” he said.

Democratic state Sen. Nancy Skinner, bill’s author, said it could especially help female athletes, who have limited opportunities for professional sports once y leave college. “College is primary time when spotlight is on” m, Skinner said. “For women, this might be only time y could make any money.” NCAA rules bar players from hiring nts. NCAA has also stefastly refused to pay players in most cases. But a committee is studying or ways players could make money. Its report is expected in October.

NCAA does let some athletes accept money in some instances. Tennis players can accept up to $10,000 in prize money per year, and Olympians can accept winnings from ir competitions. Also, many schools pay players yearly cost-of-living stipends of $2,000 to $4,000.
“We just kind of joked every kid is going to want to go to college out here in Cali w,” Warriors forward Glenn Robinson III, who played college ball at Michigan, said of new law. “I think it’s time. A lot of people are waking up and starting to see how much money that se universities are making off of players,” he ded. “Where I went to school, a lot of players couldn’t afford lunch.

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