Tuesday, October 1, 2019

College athletes can be paid for endorsements in California: an end to an American repugnance?

College sports in the U.S. has long been an anomaly--our overseas colleagues must run colleges for reasons other than sports, but in the U.S. college sports are a big deal. And being a big-time college athlete leads to lucrative professional careers for some, but while in college the powers that be have long ruled that athletes can't be paid.  That may now be changing.

The NY Times has the story:

California Governor Signs Plan to Let N.C.A.A. Athletes Be Paid
Gov. Gavin Newsom signed a bill to allow college athletes to hire agents and make money from endorsements. The measure, the first of its kind, threatens the business model of college sports.

"The governor’s signature opened a new front of legal pressure against the amateurism model that has been foundational to college sports but has restricted generations of students from earning money while on athletic rosters.

"If the law survives any court challenges, the business of sports would change within a few years for public and private universities in California, including some of the most celebrated brands in American sports. So, too, would the financial opportunities for thousands of student-athletes, who have long been forbidden from trading on their renown to promote products and companies.

“Every single student in the university can market their name, image and likeness; they can go and get a YouTube channel, and they can monetize that,” Newsom said in an interview with The New York Times. “The only group that can’t are athletes. Why is that?
...
"In a statement on Monday, the N.C.A.A., which had warned that it considered the measure “unconstitutional,” said that it would “consider next steps in California” and that “a patchwork of different laws from different states will make unattainable the goal of providing a fair and level playing field.”

The state’s rebuke of a system that generates billions of dollars each year went against powerful universities, including California, Stanford and Southern California. The schools said the law would put their athletes in danger of being barred from routine competitions and showcase events like the College Football Playoff and the men’s and women’s N.C.A.A. basketball tournaments, made-for-TV moments that help some universities log more than $100 million each in annual athletic revenue."

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