California Rule Challenges NCAA

[NewApp]

https://www.reuters.com/article/us-spor ... SKBN1WF1SR

California to let college athletes be paid in blow to NCAA rules


(Reuters) - California cleared the way on Monday for college athletes to profit from brand sponsorships and endorsement deals, as Governor Gavin Newsom signed legislation making it the first U.S. state to give them that potentially lucrative opportunity.
The legislation states that college athletes may profit from their “name, image or likeness.” It could set up a showdown between the most populous U.S. state and the National Collegiate Athletic Association, the influential governing body for intercollegiate athletics, over the NCAA’s longstanding rule that college athletes cannot be provided compensation.

The measure is due to take effect in 2023.

“Colleges and universities reap billions from these student athletes’ sacrifices and success but block them from earning a single dollar. That’s a bankrupt model - one that puts institutions ahead of the students they are supposed to serve,” Newsom, a Democrat, said in a statement, referring to schools and the NCAA.

Is this the death knell for amateur athletics?

[appstatealum]

This is certainly the first step to the death of collegiate athletics as we know it. I was always against paying the athletes from the school, but realized it was not fair for a player to profit from his likeness. However, you are opening a can of worms and there will be so many slimy characters involved, there will not be any good to come out of this. The universities will also want their share since the players will be leveraging the school to make money. As much as I dislike the NCAA, it’s a necessary evil to maintain the “integrity” of collegiate athletics. Essentially, College Football is a paid internship. The schools are providing the players with a platform to showcase what they can offer to the NFL and are paying for everything that’s involved in preparing that athlete for next level, including their education. Whether the student athletes take that degree serious or not, is up to them. For the majority of Americans, college debt is one f the largest debts they will carry for the majority of our lives.

These athletes aren’t being exploited. The student-university dynamic is the same as a company-employee relationship. The company and CEO make plenty of money, most of which gets rolled back into operation. As an employee, I’m the one out here breaking my back making the money, and there is plenty of people that get paid to just move around the money I brought in. My goal is to work harder to bring in more money for my company in the hopes to get noticed and get promoted. It’s called capitalism,

“So, if it’s capitalism, why can’t a student athlete make kidney on his own likeness if someone is willing to pay for it?”.

As an “employee” of my company, I cannot leverage my company, the tools they have provided, their likeness, to profit for myself, mits conflict of interest.

This whole thing is just a vicious cycle of back nd forth, and that is why it just can’t work.

[appst89]

Here's what I see happening: Let's just say for the sake of argument that the value of a scholarship to Mega Power5 University is $75,000 per year. There is an NCAA limit of 25 scholarships per year, so some people say that will mitigate the impact of the name, image, likeness opportunities. But, let's say MP5U has a donor who founded a major shoe company. MP5U has already offered their maximum 25 schollies for this recruiting year, but MP5U donor steps in and signs another 25 5-star players to $75,000 per year shoe endorsement deals with his company. Now, they are essentially on scholarship too and MP5U has a recruiting class of 50.

I can see the argument for name, image and likeness payments, but the unintended consequences are going to be tremendous.

[Yosef10]

Rich people don’t have money from having poor ROI. They’re not just going to hand out money to any Jimmy and Joe. And those that do and have those 4 and 5 stars transferring out and/or not playing will correct their investment allocations very quickly. There’s literally no downside to this, and the few unintended consequences there may be can be corrected if needed. Time to let student-athletes participate in the free market system just as Jill in the psychology department is able to if anyone felt she’s worth any market value without punishment. That’s all this is.

Also, lol at thinking slimy characters aren’t already involved. This at least brings everything to the light.

[appst89]

Rich people don’t have money from having poor ROI. They’re not just going to hand out money to any Jimmy and Joe. And those that do and have those 4 and 5 stars transferring out and/or not playing will correct their investment allocations very quickly. There’s literally no downside to this, and the few unintended consequences there may be can be corrected if needed. Time to let student-athletes participate in the free market system just as Jill in the psychology department is able to if anyone felt she’s worth any market value without punishment. That’s all this is.

Also, lol at thinking slimy characters aren’t already involved. This at least brings everything to the light.

Where did anyone say slimy characters aren't already involved? And where did anyone say that boosters will throw money at any Jimmy or Joe?

You're kidding yourself if you think there won't be unintended consequences. This is just like the CFP; it was the right thing to do and college football definitely needed a playoff. The unintended consequence of it is that teams, and even entire conferences (Pac-12) are already writing off their seasons because they are out of the playoff picture. The CFP has devalued the other bowl games.

Name, image and likeness is the right thing to do; a kid should absolutely be able to profit from his own name, but it's guaranteed to have an effect. For example, if a booster owns a company that gives a substantial amount to the booster club, is that donation going to change if the booster's company is paying several players endorsement deals? Suddenly, money that is used for the entire athletic department is now being paid to four or five individuals.

It's going to happen because it already has too much momentum to stop, but it's going to be messy and it's going to be impossible to control.

[appstatealum]

Rich people don’t have money from having poor ROI. They’re not just going to hand out money to any Jimmy and Joe. And those that do and have those 4 and 5 stars transferring out and/or not playing will correct their investment allocations very quickly. There’s literally no downside to this, and the few unintended consequences there may be can be corrected if needed. Time to let student-athletes participate in the free market system just as Jill in the psychology department is able to if anyone felt she’s worth any market value without punishment. That’s all this is.

Also, lol at thinking slimy characters aren’t already involved. This at least brings everything to the light.

Wealthy people have plenty of money to risk throwing away to propel their alma mater. I don’t think they will pay for 25 scholarships, but they definitely would be willing throw money at some kids to propel their University and have bragging rights. And yes, there are slimy characters now, but they have thin alleys into the CFB world. This new legislation would be giving them a wide open door and a welcome mat....and a cocktail....

[Rick83]

I would have to believe that we're talking about a pretty small percentage of players that would earn anything based strictly on their own recognition. If the school is brought into the deal either by name or visually (HI, I'm Sam Howell, QB for the Carolina Tar Heels), I would think the school would get their cut or at least be involved in the negotiation.

I also believe it's going to have some impact on team morale if you've got one or two guys getting paid while the other 83 are not. I also believe as mentioned elsewhere you're going to see all kinds of shady deals occurring.

I don't like it. I have family there and I can tell you California is a screwed up state; their homeless situation is reaching ridiculous large scale humanitarian-crisis proportions. The rest of the nation should not be taking their lead from California.

[appstatealum]

I would have to believe that we're talking about a pretty small percentage of players that would earn anything based strictly on their own recognition. If the school is brought into the deal either by name or visually (HI, I'm Sam Howell, QB for the Carolina Tar Heels), I would think the school would get their cut or at least be involved in the negotiation.

I also believe it's going to have some impact on team morale if you've got one or two guys getting paid while the other 83 are not. I also believe as mentioned elsewhere you're going to see all kinds of shady deals occurring.

I don't like it. I have family there and I can tell you California is a screwed up state; their homeless situation is reaching ridiculous large scale humanitarian-crisis proportions. The rest of the nation should not be taking their lead from California.

Honestly, California is most likely only doing this to ensure they get their cut of the money. They figure, if athletes are getting paid already under the table, we might as well make it easier and get our cut. That state has some serious problems and they add legislation that just adds to their mess,

[APPdiesel]

I didn't realize so many of you were anti capitalists and anti-Americans. Everyone else in this country has the right to profit from their name, likeness, and intellectual property. Don't try to uphold the NCAA's corrupt dictatorial system where they exploit athletes to the tune of $1 billion a year, get all the money, and don't give anything back. Universities do a terrible disservice to many many athletes by majoring them in athletic eligibility for our enjoyment.

I wrote a blog for ESPN Upstate about this, if you care to read it. It's actually a very simple solution that doesn't allow players to get paid while in school, but to have a capped amount available to them upon graduation and completion of a financial literacy course:

https://espnupstate.radio.com/blogs/die ... letes-easy

We also had SC State Senator Marlon Kimpson on our show, he's the senator to proposed South Carolina's version of this legislation: https://espnupstate.radio.com/media/aud ... reakoutmp3

The biggest thing a lot of you are missing is that California's law serves the purpose only to force the NCAA to the table and absolutely will not be the way an actual structure will look if implemented. An Ohio lawmaker has already introduced a federal bill to the same effect that looks very different.

[Rick83]

I am totally pro-capitalist, and vote that way, but I believe that the education and degree, strength and conditioning, skill development, room and board, and general preparation for the next level including use of facilities and platform for exposure that the school provides, for 4 to 5 years is "compensation" that all on the team receive.

[appst89]

I didn't realize so many of you were anti capitalists and anti-Americans.

Stopped reading right there. Such hyperbole makes any type of discussion impossible.

[goapps93]

The tax issue is valid. California needs to add to their tax base badly. This will only be a drop in the bucket though.

[moonshine]

I didn't realize so many of you were anti capitalists and anti-Americans. Everyone else in this country has the right to profit from their name, likeness, and intellectual property. Don't try to uphold the NCAA's corrupt dictatorial system where they exploit athletes to the tune of $1 billion a year, get all the money, and don't give anything back. Universities do a terrible disservice to many many athletes by majoring them in athletic eligibility for our enjoyment.

I wrote a blog for ESPN Upstate about this, if you care to read it. It's actually a very simple solution that doesn't allow players to get paid while in school, but to have a capped amount available to them upon graduation and completion of a financial literacy course:

https://espnupstate.radio.com/blogs/die ... letes-easy

We also had SC State Senator Marlon Kimpson on our show, he's the senator to proposed South Carolina's version of this legislation: https://espnupstate.radio.com/media/aud ... reakoutmp3

The biggest thing a lot of you are missing is that California's law serves the purpose only to force the NCAA to the table and absolutely will not be the way an actual structure will look if implemented. An Ohio lawmaker has already introduced a federal bill to the same effect that looks very different.

Exploits athletes? Do the athletes not know what they are signing up for? No one is forcing these players to go to college. Many would not even have the opportunity to go without an athletic scholarship. The NCAA generates $1b with about half going back to member institutions. That $1b is not profit which I believe is around $100m. I'm not taking up for the NCAA due to it's wrist slapping and corruption but everyone wants to point fingers at this body for governing amateur athletics instead of pointing the finger at the NFL, another billion dollar industry, for not having their own true minor league (see baseball and D-league).

Would the player's NIL have the same appeal if they weren't using the university's brand? If the players want to get paid like the rest of the student body, then schools and the NCAA should hold them to the same admission standards as the rest of the student body. No more exemptions, you either have the grades to get in or you don't. Good luck getting NIL money playing at a D2/3/juco school. Does the rest of the student body get access to professional S&C/rehab programs, unlimited meals, personal tutors etc? If not, then the players should have to pay for all of that just like the rest of the student body.

The next thing you know, universities will create fake classes for the entire student body to enroll in

[MrCraig]

I am totally pro-capitalist, and vote that way, but I believe that the education and degree, strength and conditioning, skill development, room and board, and general preparation for the next level including use of facilities and platform for exposure that the school provides, for 4 to 5 years is "compensation" that all on the team receive.

What about the vast majority of student athletes who don’t make it to the next level? What about the athletes who suffer injuries and can’t play? What about walk-ons? Don’t they deserve to make some money?

Or how about this scenario? Let’s flip it. Students who are on academic scholarships are now banned from any sort of employment. They aren’t allowed to tutor other students, make online help videos, or work a part-time job. Is that fair? I mean the scholarship and room and board is payment enough, right?

[moonshine]

Or how about this scenario? Let’s flip it. Students who are on academic scholarships are now banned from any sort of employment. They aren’t allowed to tutor other students, make online help videos, or work a part-time job. Is that fair? I mean the scholarship and room and board is payment enough, right?

Athletes are not banned from employment. The NCAA allows athletes to have a paying job.

[Rick83]

I am totally pro-capitalist, and vote that way, but I believe that the education and degree, strength and conditioning, skill development, room and board, and general preparation for the next level including use of facilities and platform for exposure that the school provides, for 4 to 5 years is "compensation" that all on the team receive.

What about the vast majority of student athletes who don’t make it to the next level? What about the athletes who suffer injuries and can’t play? What about walk-ons? Don’t they deserve to make some money?

Or how about this scenario? Let’s flip it. Students who are on academic scholarships are now banned from any sort of employment. They aren’t allowed to tutor other students, make online help videos, or work a part-time job. Is that fair? I mean the scholarship and room and board is payment enough, right?

The athletes that don't make it to the next level or incur a career-ending injury have, if they've been smart about it, earned a college degree which will help them have a decent life and many actually go into coaching at some level.
I don't have a problem with scholarship athletes working a part time job or tutoring other students, even working as personal trainers. I would support that being lifted if it's a restriction, obviously there would have to be rules around that to prevent the shady deals from happening but you're never going to prevent all of that.
Also, are the scholarship athletes provided healthcare? I'm just curious.

[goapps93]

Or how about this scenario? Let’s flip it. Students who are on academic scholarships are now banned from any sort of employment. They aren’t allowed to tutor other students, make online help videos, or work a part-time job. Is that fair? I mean the scholarship and room and board is payment enough, right?

Athletes are not banned from employment. The NCAA allows athletes to have a paying job.

AND students receiving academic aid are not on scholarship for EXTRA CURRICULAR activities. Having said that, I don't think THIS law is going to have that much affect on things. But it opens a Pandora's box that should be explored with caution.

[Rick83]

It's a slippery slope for sure...

[appstatealum]

I didn't realize so many of you were anti capitalists and anti-Americans. Everyone else in this country has the right to profit from their name, likeness, and intellectual property.
I wrote a blog for ESPN Upstate about this, if you care to read it. It's actually a very simple solution that doesn't allow players to get paid while in school, but to have a capped amount available to them upon graduation and completion of a financial literacy course:

https://espnupstate.radio.com/blogs/die ... letes-easy

Anyone who knows me would absolutely assure you I am about as conservative/capitalist as it gets. Like I mentioned before, these kids should absolutely get paid for their likeness etc, i just don’t see how it can be done without destroying many of the other things that make CFB great.

I absolutely agree with the idea of putting this money in a “trust”, which can be collected and taxed after graduation. This would protect the kids from going down a bad path. No matter what, everything needs to be governed, and if all of the angles can be covered, I would want it to work it out.

[APPdiesel]

I didn't realize so many of you were anti capitalists and anti-Americans.

Stopped reading right there. Such hyperbole makes any type of discussion impossible.

Its adapt or die time 89. This has been coming down the pipeline for years and it won't stop. The NCAA won't win this fight. Digging their heels in and banning it will only cause forward thinking brands to break away and THEN college football as we know it is really over.

How's this for hyperbole, James Madison vehemently denied cost of attendance stipend and it cost them the FBS. They stuck to their guns and got left behind.

Will you stop going to games if Darrynton Evans can make $200 for doing a running backs clinic in April? It doesnt affect us as fans except maybe giving us more access to the players we root for at sponsored events.