California Governor Gavin Newsom approved legislation allowing college athletes in the state to receive compensation from endorsement deals.
Currently, the National Collegiate Athletic Association (NCAA) prohibits student athletes to make profits from their association with college sports.
New California law disrupts NCAA rules
Gov. Newsom’s decision to sign into law SB 206, the Fair Pay to Play Act is a complete rejection of the NCAA’s policy. The association strongly opposed the legislation citing the reason that California colleges and universities will have unfair advantage in recruiting since the rest of the states do not have a similar measure.
Under the Fair Pay to Play Act, student athletes enrolled in public or private colleges or universities in California are allowed to earn money from the use of their names, images or likeness. Student athletes have the right to hire sports agents and they cannot lose their scholarships if they receive income from their work.
Additionally, the newly-signed law prohibits California colleges and universities from enforcing NCAA rules preventing student athletes from getting paid. The Fair to Play Act also prohibits the NCAA from banning California colleges and universities from competing in the league if their athletes sign sponsorship agreements.