CA passes bill allowing college athletes to profit from endorsements

From today’s Los Angeles Times:

California became the first state to require major financial reforms in college athletics on Monday after Gov. Gavin Newsom signed into law a measure that allows players to receive endorsement deals, despite the National Collegiate Athletic Assn. calling the move unconstitutional.

Other states have proposed similar measures to pressure the NCAA, but so far only California is on a collision course with the governing body of college athletics, a billion-dollar organization that has repeatedly opposed efforts to allow players to profit off their sports.

Senate Bill 206 by Sen. Nancy Skinner (D-Berkeley) prohibits the NCAA from barring a university from competition if its athletes are compensated for the use of their name, image or likeness beginning Jan. 1, 2023. The University of California system, California State University schools, Stanford and USC all opposed the bill, saying they feared it would increase costs to ensure compliance with the law and lead to fines or even expulsion from the NCAA.

Newsom said university presidents and athletic boosters contacted him and urged him to veto the bill but that he felt strongly the state needed to address the racial, gender and economic injustices ingrained in college athletics.

“I have deep reverence, deep respect for the NCAA and college athletics,” Newsom said Monday. “I just think the system has been perverted, and this is fundamentally about rebalancing things. It’s about equity, it’s about fairness, and it’s about time.”

Read the complete article here.