Defying the NCAA, California's governor signed a first-in-the-nation law Monday that will let college athletes hire agents and make money from endorsements — a move that could upend amateur sports in the U.S. and trigger a legal challenge.
Under the law, which takes effect in 2023, students at public and private universities in the state will be allowed to sign deals with sneaker manufacturers, soft drink makers or other businesses and profit from their images, names or likenesses, just like the pros.
"It's going to change college sports for the better by having now the interest, finally, of the athletes on par with the interests of the institutions," Democratic Gov. Gavin Newsom said in a tweeted video. "Now we're rebalancing that power arrangement."
He predicted other states will introduce similar legislation. Two lawmakers in South Carolina have already announced plans to do so.
The new law applies to all sports, though the big money to be made is in football and basketball. It bars schools from kicking athletes off the team if they get paid.
It does not apply to community colleges and prohibits athletes from accepting endorsement deals that conflict with their schools' existing contracts.
The NCAA had asked Newsom to veto the bill, warning it "would erase the critical distinction between college and professional athletes." The board also cautioned that the law would give California universities an unfair recruiting advantage, which could prompt the NCAA to bar them from competition.
Powerhouse programs like the University of Southern California, the University of California, Los Angeles, Stanford University and the University of California, Berkeley, could find themselves banned.
But while the NCAA is the top governing body for college sports, membership is voluntary. If the California schools are forced out, they could form a new league.
Professional athletes have endorsed the law, including NBA superstar LeBron James, whose 14-year-old son is a closely watched basketball prospect in Los Angeles and will be 18 when the measure takes effect.
On Instagram, James exulted over the signing of the law, saying it will "change the lives for countless athletes who deserve it!"
He added: "NCAA, you got the next move. We can solve this for everyone!
Democratic state Sen. Nancy Skinner, the bill's author, said the measure lets athletes share in the wealth they create.
"For decades, college sports has generated billions for all involved except the very people most responsible for creating the wealth. That's wrong," she said.
Newsom likewise portrayed the law as righting a wrong.
"Other college students with a talent, whether it be literature, music, or technological innovation, can monetize their skill and hard work," he said. "Student athletes, however, are prohibited from being compensated while their respective colleges and universities make millions, often at great risk to athletes' health, academics, and professional careers."
The NCAA has steadfastly refused to pay players in most cases. But a committee led by Ohio State Athletic Director Gene Smith and Big East Commissioner Val Ackerman is studying other ways players could make money. Its report is expected in October.
The NCAA does let some athletes accept money in some instances. Tennis players can accept up to $10,000 in prize money per year, and Olympians can accept winnings from their competitions. Plus, schools in the big "Power 5" conferences can pay players yearly cost-of-living stipends of between $2,000 and $4,000.
The NCAA reported $1.1 billion in revenue in 2017.
Democratic Gov. Gavin Newsom announced Monday he signed the law that would let athletes at California universities make money from their images, names or likenesses. The law also bans schools from kicking athletes off the team if they get paid.
The law will take effect on Jan. 1, 2023. It does not apply to community colleges and bans athletes from accepting endorsement deals that conflict with their schools' existing contracts.
California is the first state to pass such a law.
The NCAA Board of Governors had asked Newsom to veto the bill, saying it "would erase the critical distinction between college and professional athletes." The board also warned that the law would give California universities an unfair recruiting advantage, which could prompt the NCAA to bar them from competition.
If that happened, powerhouse programs like the University of Southern California, University of California, Los Angeles, Stanford University and the University of California, Berkeley, would be banned from NCAA competition.
But while the NCAA is the top governing body for college sports, membership is voluntary. If the California schools are forced out, it could prompt others to follow and form a new league.
Professional athletes have endorsed the law, including NBA superstar LeBron James, whose 14-year-old son is a closely watched basketball prospect in Los Angeles.
The NCAA has steadfastly refused to pay players. But a committee led by Ohio State Athletic Director Gene Smith and Big East Commissioner Val Ackerman is studying other ways players could make money. The committee's report is expected in October.
The NCAA does let some athletes accept money in some cases. Tennis players can accept up to $10,000 in prize money per year, and Olympians can accept winnings from their competitions. Plus, schools in the "Power 5" conferences can pay players yearly cost-of-living stipends of between $2,000 and $4,000.
The NCAA reported $1.1 billion in revenue in 2017.
