Gov. Newsom signs bill that will allow college athletes to profit from endorsements

Gov. Gavin Newsom has signed a bill making California the first state to allow college athletes to earn money from their name, image or likeness.

The bill, which would take effect in 2023, is a direct challenge to the model of amateurism that has defined college sports, and pressures legislators in other states and National Collegiate Athletic Association (NCAA) officials alike to adopt policies that incorporate athletes monetization of their personal brand.

Under the current law, known as the “Student Athlete Bill of Rights,” California bars college athletes from profiting off their athletic performance including marketing their own image.

USC reported over $100 million in intercollegiate athletic revenue for fiscal year 2018, but would still be banned from paying players directly under the new law. College athletes could enter endorsement deals and hire an agent, which is not allowed under current NCAA rules.

In a statement sent to Annenberg Media, USC said it “supports student-athlete reforms," but also is concerned that without future legislative updates, “our student-athletes will lose their ability to compete, and recruitment at California universities will suffer significantly.”

The bill’s co-author State Sen. Steven Bradford called it “a civil rights issue of the day” in a call with Annenberg Media.

“We’ve been exploiting college athletes for far too long,” he added.

The bill leaves open the opportunity for continued negotiations with the NCAA during the three years before it goes into effect. The NCAA has created a committee to address the issue and is set to make its recommendations in October.

USC had previously campaigned against the bill, along with other powerful universities Stanford, Cal, and UCLA, citing fears its athletes would be barred from competitions like the College Football Playoff and NCAA basketball tournament.

All four schools are in the Pac-12 athletic conference, which reiterated its opposition to the bill in a statement today.

“This legislation will lead to the professionalization of college sports... imposes a state law that conflicts with national rules... will likely reduce resources and opportunities for student-athletes in Olympic sports and have a negative disparate impact on female student-athletes," they wrote in the statement.

After previously calling the legislation “unconstitutional," the NCAA released a statement promising to “consider next steps in California 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.”

USC interim athletic director Dave Roberts, who took over earlier this month after new President Carol Folt announced the resignation of Lynn Swann, is a member of the NCAA’s Committee on Infractions and has served on numerous NCAA working groups.

Before Newsom signed the bill, Folt expressed concern that it would “disadvantage all the California schools and athletes.”

Newsom, a former college baseball player at Santa Clara, signed the bill Friday while appearing on Lebron James’ HBO series “The Shop.”

In the episode, Newsom revealed that university presidents had called him asking “what the hell are you doing destroying college sports."

But Newsom, himself a former University of California Regent, argued that acknowledging the interests of student-athletes would change college sports for the better and “rebalance the power arrangement.”

“Not once did they talk about the needs of these kids," he said.

Similar legislation is developing in other state legislatures, including New York and South Carolina.