Social [Pay to Play in the NCAA] College Athletes Advocating For Revenue Sharing

[Arkain2K]

 

[Arkain2K]

NCAA Clears Way for Athletes to Earn Endorsement Money
The decision comes a month after California passed a law requiring schools in the state to allow college athletes to profit from their name, image and likeness
By Brian Costa and Louise Radnofsky | Oct. 29, 2019​

​

The NCAA cleared the way for college athletes to begin profiting from their name, image and likeness on Tuesday, a landmark decision that could dramatically alter the economics of college sports.

The move came amid growing pressure from legislators, a month after California passed a law requiring schools in the state to allow college athletes to earn endorsement money, and represents a stark shift in policy.

In a concession the NCAA had long resisted, the organization’s governing board directed its three divisions to immediately consider changing the rules governing such benefits for athletes, and to make any such changes no later than January 2021.

“We must embrace change,” said Michael Drake, chair of the board and president of Ohio State University.

The details of the new policy are yet to be determined. The NCAA said it must be “in a manner consistent with the collegiate model,” making clear that compensation for performance or participation is still prohibited, among other conditions. But the directive nonetheless paves the way for a scrambled financial landscape in college sports.

College athletes, who have remained largely cut off from the profits of what has grown into a multi-billion-dollar industry, may soon be able to earn related income without jeopardizing their eligibility to compete.

The NCAA’s decision is expected to create opportunities for financial gain large and small for a wide range of athletes. For a tennis star, it could lead to giving paid lessons to recreational players. For a gymnast with a crowd-pleasing floor exercise, it might mean monetizing a YouTube channel. For a football player, it could mean being featured in a video game.

Though endorsement money wouldn’t necessarily stop the best football and basketball players from turning pro before they graduate, it would at least decrease the financial imbalance between them and the institutions that profit from their participation.

Electronic Arts chief executive Andrew Wilson said last week that he would be open to the return of his company’s NCAA Football games, which it discontinued in 2013 amid lawsuits filed by former players seeking compensation from the NCAA.

“If there’s a world where the folks who govern these things are able to solve for how to pay players for the use of their name and likeness and stats and data, we would jump at the opportunity to build a game in a heartbeat,” Wilson said at the WSJ Tech Live conference.

New NCAA regulations could prevent a scenario raised by the California law, set to take effect in 2023, in which the rules governing college sports could vary by state.

The law had sparked a dramatic confrontation between the state and the association. The NCAA had threatened to bar California from its competitions, and said it believed the bill was unconstitutional, setting up the prospect of litigation that could come from multiple directions.

The sponsor of the California bill, Democratic state Sen. Nancy Skinner of Berkeley, said Tuesday she saw the NCAA move as “great progress” but had no intention of accepting the matter as settled.

“The devil’s in the details,” she said. “If they mean that they want to provide our college athletes all the support that they need to succeed as students, hey, we’re totally in support. But arbitrary limitations on a student athlete’s ability to generate income, that is not going to be acceptable.”

Matthew Cantor, a partner in the Constantine Cannon law firm, said the announcement would likely slow litigation, but not necessarily forestall it. “I don’t see them rushing into court right now,” he said of the NCAA. “I think that they are going to try at least for a period of time to put themselves in a position so that they’re compliant with the law.”

Ultimately, he said, the NCAA could still find itself at odds with California and states seeking to follow it over key unresolved issues such as “masked bounties,” in which a school booster offers sponsorship to an athlete as part of the recruitment process.

Federal legislative efforts to expand the rights of college athletes are also likely to continue. Key lawmakers said they weren’t dropping a bill that would effectively force the NCAA to allow athletes to profit from the use of their name, image and likeness or forfeit its tax-exempt status.

“We clearly have the NCAA’s attention. Now, we need to have their action. While their words are promising, they have used words in the past to deny equity and basic constitutional rights for student-athletes,” said Rep. Mark Walker, a North Carolina Republican, whose bill is co-sponsored by Louisiana Democrat Cedric Richmond. “The NCAA is on the clock.”

Critics of changes to the NCAA model have said they risk turning off fans, by increasing the role of money in an arena that had been less driven by financial considerations than professional sports leagues. They also say that college athletes are more than adequately compensated in the form of full-ride scholarships and other benefits worth tens or hundreds of thousands of dollars. Until now, the NCAA had largely shared that position.

Another North Carolina Republican said he would seek to tax athletes’ scholarships if they took the money.

“If college athletes are going to make money off their likenesses while in school, their scholarships should be treated like income. I’ll be introducing legislation that subjects scholarships given to athletes who choose to “cash in” to income taxes,” said Sen. Richard Burr.

The NCAA said any new rules must ensure that athletes are treated similarly to non-athletes in terms of their rights to profit from their name, image and likeness. It added that the rules must maintain a distinction between collegiate and professional opportunities and must “protect the recruiting environment,” though the effect is likely to impact recruiting.

The NCAA also said the rules must reaffirm that athletes are not university employees, an argument it has previously used in its opposition to athlete unionization.

Advocates for college athletes’ rights were unimpressed. Ramogi Huma, executive director of the National College Players Association, said the NCAA’s statement is merely another attempt to stall on the issue. “If the NCAA truly wants players to be treated as regular students it would support legislation guaranteeing equal economic freedom,” he said.

It remains to be seen just how much athletes will be able to profit—and to what extent it will come at universities’ expense. Jim Cavale, chief executive of sports marketing consultancy INFLCR, said a key question is whether corporate sponsors that endorse athletes do so in addition to what they’re already spending directly with schools or in lieu of some of that.

“It may change the budgets of the schools,” Cavale said.

https://www.wsj.com/articles/ncaa-c...hletes-to-be-compensated-11572372807?mod=e2fb

 

[glenwo2]

The NCAA system is about to get a makeover, as other states will undoubtedly follow suit in order to keep their college sports stars from jumping ship to Cal/USC/UCLA.

Star players in the most popular sports (namely Football and Basketball) in big cities will no doubt make some good endorsement money off this, but how these changes will affect the average players as well as other collegiate sporting programs remains to be seen.

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California Governor Signs Bill Allowing College Athletes To Profit From Endorsements
September 30, 2019​

UCLA players celebrate during a game against the Arizona Wildcats at the Rose Bowl last year in Pasadena, Calif.
Gov. Gavin Newsom has signed a bill paving the way for college athletes in the state to hire agents and sign endorsement deals.​

In a move that puts California on a collision course with the NCAA, Gov. Gavin Newsom has signed a bill effectively allowing college athletes in the state to earn compensation for the use of their likeness, sign endorsement deals and hire agents to represent them.

The governor signed the measure in a segment released Monday by Uninterrupted, a sports programming company co-founded by LeBron James.

Newsom proclaimed the move as "the beginning of a national movement — one that transcends geographic and partisan lines."

"Collegiate student athletes put everything on the line — their physical health, future career prospects and years of their lives to compete. Colleges reap billions from these student athletes' sacrifices and success but, in the same breath, block them from earning a single dollar," he said in a statement. "That's a bankrupt model — one that puts institutions ahead of the students they are supposed to serve. It needs to be disrupted."

California is the first state to pass such a law, which is to take effect on Jan. 1, 2023.

That marks a significant shift from the current policies enforced by the NCAA, collegiate sports' national governing body, which generally renders student-athletes ineligible to accept compensation for "the use of his or her name or picture to advertise, recommend or promote directly the sale or use of a commercial product or service of any kind."



And the NCAA Board of Governors pushed back hard against the bill at the time of its passage in the Legislature, saying that it would leave the playing field for universities of different sizes radically uneven.

"Right now, nearly half a million student-athletes in all 50 states compete under the same rules," the 22-member panel composed mostly of university presidents and athletic directors said in a letter to Newsom on Sept. 11. "This bill would remove that essential element of fairness and equal treatment that forms the bedrock of college sports."

On Monday, shortly after Newsom's announcement, the NCAA released another, slightly more conciliatory statement — one acknowledging that "changes are needed to continue to support student-athletes" but also warning that "this new law already is creating confusion for current and future student-athletes, coaches, administrators and campuses, and not just in California."

"We will consider next steps in California," the group added, "while our members move forward with ongoing efforts to make adjustments to NCAA name, image and likeness rules that are both realistic in modern society and tied to higher education."



The financial stakes of the dispute are massive.

Between TV rights, marketing fees and other avenues — particularly for its major cash cow, the NCAA Division I men's basketball tournament — the organization has reported annual revenues cresting $1 billion.

The NCAA maintains that it converts much of that intake into crucial opportunities for student-athletes, saying it has "provided billions of dollars in scholarships and the opportunity for millions across 24 sports to earn undergraduate and graduate degrees."

That hasn't silenced critics, who have grown louder in recent years amid a recent spate of high-profile investigations — including efforts by the FBI — looking into alleged corrupt recruiting practices in NCAA men's basketball. The hefty punishments levied against schools and players by the national governing body has focused a spotlight on why the competitors featured in such a lucrative industry are left out of its profits.

Michael Sokolove, who wrote of the massive scandal at the University of Louisville's basketball program in The Last Temptation Of Rick Pitino, talked to Fresh Air last year about one notable discrepancy.

"If you look at a program like Louisville, which is a program that I focused on, they generate about $45 million a year in revenue. They give out 13 scholarships. That adds up to about $400,000 a year. The rest of it gets spread out to the coach, who makes $8 million a year, to the assistant coaches, who make as much as a half-million dollars a year," Sokolove said.

"All throughout the athletic department, people are making six-figure salaries. It does not go to the players, what I call the unpaid workforce."



Pushback also has come from a number of prominent athletes, including James, who opted to skip college basketball entirely to head straight to the NBA — before the pro league implemented a minimum age requirement in 2006, barring others from following James' path.

"Part of the reason I went to the NBA is to get my mom out of the situation that she was in," James said in the informal signing ceremony with Newsom that was held on a barbershop set. "I couldn't have done that if I would have stepped on a college campus."

Others, such as NFL cornerback Richard Sherman, have rejected the notion put forward by the NCAA and others that a free college education is recompense enough for the amount of work these athletes put in. Sherman told Sports Illustrated in 2015 that he would "love for a regular student to have a student-athlete's schedule during the season for just one quarter or one semester and show me how you balance that."

"People think, 'Oh, you're on scholarship.' They pay for your room and board, they pay for your education, but to their knowledge, you're there to play football," said Sherman, who got his degree from Stanford University. "You're not on scholarship for school and it sounds crazy when a student-athlete says that, but those are the things coaches tell them every day: 'You're not on scholarship for school.' "

https://www.npr.org/2019/09/30/7657...wing-college-athletes-to-profit-from-endorsem

If College players, through endorsements, started making almost as much as NBA players, for example, what attractiveness will the NBA have if they are already financially-set for life beforehand?

Now I'm referring to can't-miss top draft players here....

 

[Mendacious]

If College players, through endorsements, started making almost as much as NBA players, for example, what attractiveness will the NBA have if they are already financially-set for life beforehand?

Now I'm referring to can't-miss top draft players here....

They can start paying their players even more for one. But you’re right that some people will avoid all the hard work and competition of the NBA because of this. Good for them.

 

[Arkain2K]

If College players, through endorsements, started making almost as much as NBA players, for example, what attractiveness will the NBA have if they are already financially-set for life beforehand?

Now I'm referring to can't-miss top draft players here....

First of all, I would say that the same basketball superstar would make exponentially more in the NBA in salaries and celebrity endorsement than college hoops.

Secondly, college players can't be in college forever, and the amount of money they make in 4 years would not even be close to "financially-set for life".

Right now the NBA is implementing rules to delay young players from jumping to the big league too soon, not the reverse. That's how the current mandatory draft age of 19 plus 1 year of college came to be. NBA bosses want their rookies to have plenty of high-caliber competitions first before joining the NBA, so this is all working out nicely.

 

[Happy Man]

College athletics should be for the student athletes. And the privilege of a full ride scholarship for sports should be based off of the student keeping a 3.0 average in STEM majors. Or law or medical school. Things like that.

 

[panamaican]

Now you're just being silly.

Nope, just pointing out the inconsistency of the argument.

Kids on athletic scholarships have to perform up to athletic standards to keep their scholarships. Kids on academic scholarships have to perform up to academic standards to keep their scholarships. So far that's reasonable. Both sets of kids being treated equally.

But then....

Kids on athletic scholarships have to perform up to academic standards to keep their athletic scholarships. Kids on academic scholarships do not have to perform up to athletic stanards to keep their academic scholarships. That's not treating them equally.

The student on the athletic scholarship has to perform up to standard on academics and athletics to keep his/her scholarship, even though the scholarship is only awarded for athletics. Meanwhile the student on an academic scholarship only has to perform up the standards for academics.

It seems far sillier to say "I'll give you a scholarship based on your ability in Field A but you can only keep it if you can perform in Field B."

Imagine a job where they hire you because you're good at math but, to keep your job, you have to perform well in music.

 

[panamaican]

If College players, through endorsements, started making almost as much as NBA players, for example, what attractiveness will the NBA have if they are already financially-set for life beforehand?

Now I'm referring to can't-miss top draft players here....

Career earnings, I'd imagine. Why earn good money for 1-4 years when you can earn that much and more for another 3+ years. Not to mention even the surefire guys aren't going to get top endorsement dollars as freshmen. They'll need at least half a season to build up some market power.

At least, that's what I think.

 

[Liquid Smoke]

Nope, just pointing out the inconsistency of the argument.

 

[panamaican]

I'm sorry that you didn't notice it before. But it's not a competition. Whether to realize on your own or hear about it from me, you're still better off than before.

 

[Revolver]

lmao @ the ncaa. They had their hand forced by the GOAT State and now they're all for athletes getting paid. They can still eat shit.

 

[ocfightfan]

College athletics should be for the student athletes. And the privilege of a full ride scholarship for sports should be based off of the student keeping a 3.0 average in STEM majors. Or law or medical school. Things like that.

I agree in principle but we have gone far off the mark from that kind of ideal in higher education overall. Its now a big money game with administrators and endowments profiting off of everyone.

 

[Low Test With da Best]

If College players, through endorsements, started making almost as much as NBA players, for example, what attractiveness will the NBA have if they are already financially-set for life beforehand?

Now I'm referring to can't-miss top draft players here....

New movie, Van Wilder: Ballin'

 

[Jorge Luis Borges]

Why wait? Let them profit off their own names now.

 

[Arkain2K]

Why wait? Let them profit off their own names now.

Revenue sharing formulas takes time to negotiate, sis. There needs to be a framework agreed by all parties involved as to how money is distributed in products like NCAA video games, for example. Without such an agreement in place, you gonna be seeing lawsuits after lawsuits when people fighting one another to get a bigger slice of the pizza.

Keep in mind that the California law mentioned in the OP doesn't take affect until Jan 2023, a full two years after NCAA's own target.

 

[Fluffernutter]

College athletics should be for the student athletes. And the privilege of a full ride scholarship for sports should be based off of the student keeping a 3.0 average in STEM majors. Or law or medical school. Things like that.

Why?

 

[7437]

College athletics should be for the student athletes. And the privilege of a full ride scholarship for sports should be based off of the student keeping a 3.0 average in STEM majors. Or law or medical school. Things like that.

Why?

 

[Happy Man]

Why?

cuz that’s the point of college? A free ride that is given to someone for sports should be used for getting a college degree. Or someone other real student will play sports for a free education.

Make semi pro leagues like hockey and baseball does, but with all sports. Then when a kid wants to play sports instead of go to school they have an option.

 

[Fluffernutter]

cuz that’s the point of college? A free ride that is given to someone for sports should be used for getting a college degree. Or someone other real student will play sports for a free education.

Make semi pro leagues like hockey and baseball does, but with all sports. Then when a kid wants to play sports instead of go to school they have an option.

I'd also like to see student-athletes be allowed to major in their sport.

Kurt McJockerton: Freshman
Major: Football

Semester 1:
Science - Kenisiology 101 - 3 Credits
Journalism - Evolution of Mass Media (From the New York Times to Memes) - 3 Credits
History - The Olympic movement during Modern Times - 3 Credits
Football Practice - 3 Credits
Football Lab (Game Day) - 1 credit

Semester 2:
English 207 - When the Author Becomes an Athlete (exploring themes in Paper Lion & A Fighter's Heart) - 3 Credits
Football Conditioning - 2 Credits
Communications 101 - Public Speaking - 3 Credits
Psychology - Psych 101 - 3 Credits
Science 107 - Basic Anatomy - 3 Credits

 

[vengeful]

If College players, through endorsements, started making almost as much as NBA players, for example, what attractiveness will the NBA have if they are already financially-set for life beforehand?

Now I'm referring to can't-miss top draft players here....

Because the money won't last forever, people make huge amounts of money on their NBA contracts and continue playing. Lebron is in year 17 now and has probably made over half-a-billion from his NBA contracts and likely just as much if not more from his endorsements. What better job are you going to get that pays that kind of money, allows you to travel all over the country, stay in fancy hotels, and get the entire summer off?

California cucked the NCAA, hilarious.