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Show Me the Money: Should College Athletes Play for Pay?
(Note: companies that
could be impacted by the content of this article are listed at the base of the
story [desktop version]. This article uses third-party references to provide a
bullish, bearish, and balanced point of view; sources are listed after the
Balanced section.)
On September 30th, California Governor Gavin Newsom signed into law Senate Bill 206, the so-called “Fair Pay to Play Act.” The law allows college athletes to receive compensation for use of their name, image, or likeness; to hire agents; and to be paid for endorsements. The law goes into effect January 1, 2023. This bill is against current NCAA rules, which ban players from receiving any compensation aside from scholarships. Under existing NCAA rules, athletes cannot execute any endorsement deals or accept payment for use of their images. Notably, however, SB 206 would still prohibit schools from paying athletes. Since Governor Newsom’s signing, lawmakers in 11 other states, as well as at least one US Congressman, have proposed similar legislation.