Three years after California took the lead in the battle for college athlete rights as the first state to legalize name, image and likeness payments to players, another potentially game-changing bill is on the move through the state legislature in…
Senate Bill 206, signed into law by Gov. Gavin Newsom in the fall of 2019, made it illegal for the NCAA universities to prohibit third parties from paying college athletes for use of their NILs in endorsements, sponsorships and other appearances. But it did not ask school athletic departments to alter their budgets, which allowed for an easy passageway.
California college athletes would be the first to receive payments related to their athletic performance directly from schools. The NCAA, following what’s been laid out in court decisions, has always fought to keep benefits “tethered to education.” Think about taking $15 million to $20 million that currently has been used to reinvest in football resources and to fund the rest of the athletic department and transferring it to football players, and it’s easy to see why administrators are getting ready for a fight.
Among administrators, this is viewed as clever wording meant to make the bill easier to pass and harder to lobby against. The assumption is that once “pay for play” begins, employment and collective bargaining will quickly follow.That is hard to know. It has a long way to go, needing to make it through the Senate and then through a bunch of committees in the Assembly and then the Assembly floor before moving onto the governor’s desk.
In that case, say USC football made $10 million more in 2022 than it did in 2021. Then all of the gain would go to feeding the players’ degree completion funds — $117,650 each — but the department would be able to continue to use the same amount from 2021 to fund the rest of its sports and avoid the doomsday scenario.
It seems likely that if the bill passes, it will have something like this new revenues option in place, because it would give the schools a chance to maintain their current level of operations.In the era of the one-time transfer waiver, this is a key component of the bill — especially one tied to degree completion.
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