In a somewhat controversial bid, California Governor, Gavin Newsom, signed into law the Fair Pay to Play Act on Sep. 30, allowing student athletes in the state to be compensated for use of their name and likeness in marketing materials. Seated alongside Newsom were social activist and NBA All-Pro LeBron James and Ed O’Bannon, the former No.9 pick in the 1995 NBA draft. O’Bannon and James have been advocates of college athletes being compensated for the billions of dollars they bring into the NCAA for quite some time now. Back in 2009, O’Bannon filed a lawsuit against the NCAA for a similar purpose, but it was ultimately denied by the Supreme Court. James has also spoken out on the topic. In 2018, he went as far as to create the documentary, “Student Athlete,” which helped raise awareness of the hidden struggles many student athletes face every day in their collegiate careers. In the documentary, James notes, “If you’re a reasonable person, it’s insane to build a $150 million recruiting facility, pay your head coach $10 million, the rest of your staff $20 million cumulative, but then say there’s not enough money to help the players.” He recently took to Twitter ith his 43.7 million following to praise Newsom for making the law official. The official signing was broadcast on James’ HBO show “The Shop” and took place in a unique setting: a Los Angeles barbershop.
To clarify, the act does not require schools to pay students; however, it does address how businesses are able to use the athletes for promotion purposes. This opens up the opportunity for athletes who do not continue onto the pro level to make money from their sport in college. Athletes are now able to hire agents to represent them in legal and business matters, including endorsements. Allowing student athletes endorsements was one of the most heavily restricted rules in the NCAA; many companies and athletes alike have gotten in trouble for even discussing potential endorsements deals for athletes attempting to “go pro” after college. Student athletes will now be permitted to endorse companies and products, which opens up a whole new realm of profit besides scholarships they receive from their respective school. The NCAA — which brings in over one billion dollars in revenue on average each year — is against the act. They argue that it can bring “chaos to college sports” and that “[NCAA athletes profiting] is unattainable of providing a fair and level playing field.” Sports economist Andy Schwarz argues otherwise stating, “The belief that talent is fairly evenly distributed across the country is blatantly false.” The NCAA has made it apparent that they will not go down without a fight. The bottom line is top universities have made billions of dollars in revenue from their athletes’ image, likeness and name; to say that the individuals who create this revenue are not allowed to touch a single cent of it is absurd. In addition, it is not direct compensation from the school; rather, it is compensation for companies being allowed to market and advertise the players. The fact that major corporations can use these athletes for their promotions such as TV commercials or merchandise without paying them is simply unfair, and some professional athletes such as Draymond Green of the Golden State Warriors have been quoted as calling it a “rip-off.” It calls into question the ethics of the NCAA and could potentially harm their image if they continue to fight this law. Going into effect in 2023, the Fair Pay to Play act is a turning point in what could be a major revolution in the sports world
Sourced: D. Carlson
