California passes law to allow student-athletes to make money off endorsements

[spikeslovechild]

Seriously, California would just create its own league. Every top 100 prospect would head out West to be apart of that league. Get the opportunity to make money while living out on the West coast. California has more than enough beautiful campuses to attract all the top prospects. You would see schools like Pepperdine become a bigger name in sports. If I was like the 80th ranked recruit, I could either go to VCU or live a couple years in Malibu California while having the chance to cash in on endorsement checks.

And yet the exact same thing can be done nowadays with players signing in the G-League and none of them do it.

There is a massive difference between popularity of a UCLA basketball game and a G League game. Im sure players feel like if they go to the G League, they're going to be forgotten about until the draft. There really isn't much potential for national visibility and endorsement opportunities.

You let California create its own league and give these schools the massive recruiting advantage of being able to sign an agent and cash in on endorsements, its game over for other colleges. They would get the massive TV audience that college brings (which G League has no TV audience), would get endorsement opportunities in prime locations whether that be in SoCal with Hollywood or NorCal/Central California with the San Fran/San Jose Tech industries, plus unbelievable campuses to spend that time and money on.

The biggest part of the draw of collegiate sports is that isn't supposed to be about the money paying players shatters this.

It will destroy the sport noone will watch the NCAA if it stops being about the school and instead becomes a professional league. Just like noone watches MILB, the CHL/AHL, NFL Europa, or the G league.

You will also have a whole bunch of guys exploiting their college eligibility to try and get paid. The NCAA should just pull out of California entirely.

[LKN]

I would be curious if you could find a judge that would consider a player a non-professional when he is being paid to play sports.

Endorsements are not paying you to play sports.

And why the hell would a judge even be involved? Judges don't rule whether players are professionals or not.... that distinction only matters to sanctioning bodies like the NCAA.

Where do all these crazy ideas come from?

[LKN]

And yet the exact same thing can be done nowadays with players signing in the G-League and none of them do it.

There is a massive difference between popularity of a UCLA basketball game and a G League game. Im sure players feel like if they go to the G League, they're going to be forgotten about until the draft. There really isn't much potential for national visibility and endorsement opportunities.

You let California create its own league and give these schools the massive recruiting advantage of being able to sign an agent and cash in on endorsements, its game over for other colleges. They would get the massive TV audience that college brings (which G League has no TV audience), would get endorsement opportunities in prime locations whether that be in SoCal with Hollywood or NorCal/Central California with the San Fran/San Jose Tech industries, plus unbelievable campuses to spend that time and money on.

The biggest part of the draw of collegiate sports is that isn't supposed to be about the money paying players shatters this.

It will destroy the sport noone will watch the NCAA if it stops being about the school and instead becomes a professional league. Just like noone watches MILB, the CHL/AHL, NFL Europa, or the G league.

You will also have a whole bunch of guys exploiting their college eligibility to try and get paid. The NCAA should just pull out of California entirely.

The bolded is hilariously wrong and dumb. College sports has been about the money for quite some time.... for everyone involved except the players.

In any case - people will keep watching and no one will care. Comparisons to the G-league are non-sensical.

Also - if the NCAA tries to pull out of California they'll face anti-trust charges.

[MoneyTalks41890]

its actually the IRS and the non-profit tax laws that are the most complicit if you really want to place blame. There are a lot of advantages given to non-profits like education institutions, religious organizations and charities that for profit businesses and individuals do not enjoy. The fact that college athletics had been historically intertwined w/ non profit institutions is the biggest reason all this drama exists - it’s something that started long before TV deals, shoe endorsements and even the NBA/NFL. It either needs divorced from these institutions, or the IRS\Gov’t needs to give some type of exception for it. Again I see it going to the Supreme Court if this law keeps going.

what does the IRS have to do with the NCAA disallowing Zion to make money of his autograph?

Look up what a 501c3 is - the key word is amateur sports competitions. Professional athletes competing in a 501c3 group’s games risks the 501c3 status. A dude making millions to endorse shoes cause he is a good basketball player can be argued to be a professional athlete.

This doesn’t just apply to basketball and football either - it’s a big deal in gymnastics when the Olympics roll around. Those girls need to decide if they want to take endorsement money and forego college gym/free education. Actually a lot chose the college route cause they value it more.

I’m a nonprofit lawyer. This has absolutely nothing to do with the c3 status of the NCAA or individual universities. They all make revenue off of commercial arrangements. And the NCAA’s c3 status is a total scam to begin with.

Check out the compensation paid out, revenue from advertising and other business functions, and contractors paid for the NCAA in 2017.

https://projects.propublica.org/nonprofits/organizations/440567264/201811719349300516/IRS990

[Pointgod]

And yet the exact same thing can be done nowadays with players signing in the G-League and none of them do it.

There is a massive difference between popularity of a UCLA basketball game and a G League game. Im sure players feel like if they go to the G League, they're going to be forgotten about until the draft. There really isn't much potential for national visibility and endorsement opportunities.

You let California create its own league and give these schools the massive recruiting advantage of being able to sign an agent and cash in on endorsements, its game over for other colleges. They would get the massive TV audience that college brings (which G League has no TV audience), would get endorsement opportunities in prime locations whether that be in SoCal with Hollywood or NorCal/Central California with the San Fran/San Jose Tech industries, plus unbelievable campuses to spend that time and money on.

The biggest part of the draw of collegiate sports is that isn't supposed to be about the money paying players shatters this.

It will destroy the sport noone will watch the NCAA if it stops being about the school and instead becomes a professional league. Just like noone watches MILB, the CHL/AHL, NFL Europa, or the G league.

You will also have a whole bunch of guys exploiting their college eligibility to try and get paid. The NCAA should just pull out of California entirely.

Hahaha if you think any one watches college sports because these kids don’t get paid. It’s a nice piece of marketing from the NCAA because precisely because they’re against athletes getting any kind of compensation. I hope the NCAA pulls out of California that would go a long way to destroying their credibility which is a good thing since they’re a corrupt organization to begin with.

[CallMeKahn]

And yet the exact same thing can be done nowadays with players signing in the G-League and none of them do it.

There is a massive difference between popularity of a UCLA basketball game and a G League game. Im sure players feel like if they go to the G League, they're going to be forgotten about until the draft. There really isn't much potential for national visibility and endorsement opportunities.

You let California create its own league and give these schools the massive recruiting advantage of being able to sign an agent and cash in on endorsements, its game over for other colleges. They would get the massive TV audience that college brings (which G League has no TV audience), would get endorsement opportunities in prime locations whether that be in SoCal with Hollywood or NorCal/Central California with the San Fran/San Jose Tech industries, plus unbelievable campuses to spend that time and money on.

The biggest part of the draw of collegiate sports is that isn't supposed to be about the money paying players shatters this.

It will destroy the sport noone will watch the NCAA if it stops being about the school and instead becomes a professional league. Just like noone watches MILB, the CHL/AHL, NFL Europa, or the G league.

You will also have a whole bunch of guys exploiting their college eligibility to try and get paid. The NCAA should just pull out of California entirely.

No one...will watch....sports! No on....watches...MLB!!!!

People don't watch the NCAA because of student athletes. Truth is most couldn't name half the players on the teams they root for at the collegiate level. Most watch because of tradition, showing supporting to a local institution, and because they enjoy it. The leagues you are referencing haven't been around any near as long, so they haven't had a chance to establish anything close to a fan base. That is why they fail or aren't watched. That takes time. College sports will be fine for athletes being paid for use of their likeness.

[spikeslovechild]

There is a massive difference between popularity of a UCLA basketball game and a G League game. Im sure players feel like if they go to the G League, they're going to be forgotten about until the draft. There really isn't much potential for national visibility and endorsement opportunities.

You let California create its own league and give these schools the massive recruiting advantage of being able to sign an agent and cash in on endorsements, its game over for other colleges. They would get the massive TV audience that college brings (which G League has no TV audience), would get endorsement opportunities in prime locations whether that be in SoCal with Hollywood or NorCal/Central California with the San Fran/San Jose Tech industries, plus unbelievable campuses to spend that time and money on.

The biggest part of the draw of collegiate sports is that isn't supposed to be about the money paying players shatters this.

It will destroy the sport noone will watch the NCAA if it stops being about the school and instead becomes a professional league. Just like noone watches MILB, the CHL/AHL, NFL Europa, or the G league.

You will also have a whole bunch of guys exploiting their college eligibility to try and get paid. The NCAA should just pull out of California entirely.

Hahaha if you think any one watches college sports because these kids don’t get paid. It’s a nice piece of marketing from the NCAA because precisely because they’re against athletes getting any kind of compensation. I hope the NCAA pulls out of California that would go a long way to destroying their credibility which is a good thing since they’re a corrupt organization to begin with.

They watch it because it's amateur sports. If the NCAA becomes a professional league people and viewed separate from the university/college people will tune out.

I hope the NCAA does leave cali if the schools want to set up their own professional league let them - they will fail.

[clyde21]

The biggest part of the draw of collegiate sports is that isn't supposed to be about the money paying players shatters this.

It will destroy the sport noone will watch the NCAA if it stops being about the school and instead becomes a professional league. Just like noone watches MILB, the CHL/AHL, NFL Europa, or the G league.

You will also have a whole bunch of guys exploiting their college eligibility to try and get paid. The NCAA should just pull out of California entirely.

Hahaha if you think any one watches college sports because these kids don’t get paid. It’s a nice piece of marketing from the NCAA because precisely because they’re against athletes getting any kind of compensation. I hope the NCAA pulls out of California that would go a long way to destroying their credibility which is a good thing since they’re a corrupt organization to begin with.

They watch it because it's amateur sports. If the NCAA becomes a professional league people and viewed separate from the university/college people will tune out.

I hope the NCAA does leave cali if the schools want to set up their own professional league let them - they will fail.

imagine being the type of person that would stop watching just because players are finally able to make money off their own names.

[MoneyTalks41890]

The biggest part of the draw of collegiate sports is that isn't supposed to be about the money paying players shatters this.

It will destroy the sport noone will watch the NCAA if it stops being about the school and instead becomes a professional league. Just like noone watches MILB, the CHL/AHL, NFL Europa, or the G league.

You will also have a whole bunch of guys exploiting their college eligibility to try and get paid. The NCAA should just pull out of California entirely.

Hahaha if you think any one watches college sports because these kids don’t get paid. It’s a nice piece of marketing from the NCAA because precisely because they’re against athletes getting any kind of compensation. I hope the NCAA pulls out of California that would go a long way to destroying their credibility which is a good thing since they’re a corrupt organization to begin with.

They watch it because it's amateur sports. If the NCAA becomes a professional league people and viewed separate from the university/college people will tune out.

I hope the NCAA does leave cali if the schools want to set up their own professional league let them - they will fail.

NCAA is a c3 association of other c3 organizations (colleges and universities). They otherwise wouldn't meet the independent requirements for c3 public charity status. And the universities are not in danger of losing their c3 status if the players are paid for endorsements or are even paid a reasonable salary. Doesnt change the character of the university, the same way that the NCAA paying its executives tens of millions doesn't change their c3 status.

NFL is a 501(c)(6) business league (also a dubious designation) because each of its members is a for-profit enterprise. Universities will not be transformed into a for-profit simply by way of paying reasonable compensation to a very small segment of their overall operations. They would still retain an exclusive educational purpose.

In fact, each university could set up a wholly owned for profit subsidiary corporation and if done appropriately not endanger their c3 status (some already do this in other contexts).

[spikeslovechild]

Hahaha if you think any one watches college sports because these kids don’t get paid. It’s a nice piece of marketing from the NCAA because precisely because they’re against athletes getting any kind of compensation. I hope the NCAA pulls out of California that would go a long way to destroying their credibility which is a good thing since they’re a corrupt organization to begin with.

They watch it because it's amateur sports. If the NCAA becomes a professional league people and viewed separate from the university/college people will tune out.

I hope the NCAA does leave cali if the schools want to set up their own professional league let them - they will fail.

imagine being the type of person that would stop watching just because players are finally able to make money off their own names.

They aren't making money off their own names though they are making money off their association with the school and the NCAA. If they were making money off their own name then they should be fine waiting until after they graduate

And yes as a professional sports league the NCAA would fail and fail miserably it survives under the facade it is still an amateur sports organization everybody knows the product itself is vastly inferior to that of the NFL, MLB, and NBA. They continue to watch because there is something special about amateur sports and seeing kids play for essentially what is the love of the game and a scholarship.

No sports fan has the same attachment to their local sports team as they do to their college team.

[Ballerhogger]

I don't understand the objections to this at all.

Look - there are actually are arguments that make sense wrt paying the players directly. It's pretty complicated (although no un-doable) and it would be tricky to come up with a system that works, preserves non-profit status, etc.

However, allowing players to sell their likeness and work however they would like off the field/court is an easy solution. Players can make money in ways that have nothing to do with the NCAA and will have no impact on them. Right now a basketball player can't even get paid to be an instructor at a camp - it's completely insane. These kids are not slaves - the NCAA has no business dictating what they do to earn money off the field/court as long as it doesn't impact their academics or play.

Players would be taxed or face tax evasion. There not getting free money they will still pay for endorsements they get

And? What's the problem?

Potentially problem since a lot players will try get tax free or don’t know how to do their taxes . Overall it’s small issue to point out

[Ballerhogger]

Im 100% sure the NCAA will try find way make these players to pay in their league . Just watch

[arh1109]

who cares? that's between the player and the company. why does the length of it matter to you in any way shape or form?

Because not every player is Lebron James who was a fully functioning adult at age 16.

Not many college students are 16. The bill also allows student-athletes to have agents that are licensed in California. In spite of how many RealGMers view agents, they can be a valuable aid, especially to an inexperienced college-age athlete.

I know what the bill is. I was making an analogy to one of the major supporters of the bill who also would've benefitted from this bill had it been passed when he was 16.

[arh1109]

Endorsement deals would be negotiated individually by each player I would guess...although the players could also likely form a union or other negotiating group to handle larger deals (such as say a video game deal).

Yes I mean I think most of them are going to be pretty small except for each year's most hyped player. Zion is the exception.

I wouldn't be so sure about that... there's a ridiculous amount of money thrown around by boosters (particularly for football). I'm sure they can come up with all kinds of endorsement opptys.

Huh I don't know much about these boosters, but college football feels bigger than basketball at times.

[xdrta+]

Because not every player is Lebron James who was a fully functioning adult at age 16.

Not many college students are 16. The bill also allows student-athletes to have agents that are licensed in California. In spite of how many RealGMers view agents, they can be a valuable aid, especially to an inexperienced college-age athlete.

I know what the bill is. I was making an analogy to one of the major supporters of the bill who also would've benefitted from this bill had it been passed when he was 16.

One tweet makes LeBron a "major supporter?"

[NBAFan93]

Yes I mean I think most of them are going to be pretty small except for each year's most hyped player. Zion is the exception.

I wouldn't be so sure about that... there's a ridiculous amount of money thrown around by boosters (particularly for football). I'm sure they can come up with all kinds of endorsement opptys.

Huh I don't know much about these boosters, but college football feels bigger than basketball at times.

College football is much bigger overall - the only big thing about basketball is the tournament. Plus NBA allegedly doing away with one and done rule soon so by 2023 there won’t be any more Zions - just kids not good enough to go pro right away trying to prove themselves. Many may not even emerge as “endorsement worthy” until January and then next thing you know they’ll be gone to the NBA.

This law will probably have a much bigger impact on football cause those kids have to stay 2 years. Probably the big name quarterbacks will benefit the most.

[Curmudgeon]

The California schools now have a huge recruiting advantage.

[XxIronChainzxX]

And yet the exact same thing can be done nowadays with players signing in the G-League and none of them do it.

There is a massive difference between popularity of a UCLA basketball game and a G League game. Im sure players feel like if they go to the G League, they're going to be forgotten about until the draft. There really isn't much potential for national visibility and endorsement opportunities.

You let California create its own league and give these schools the massive recruiting advantage of being able to sign an agent and cash in on endorsements, its game over for other colleges. They would get the massive TV audience that college brings (which G League has no TV audience), would get endorsement opportunities in prime locations whether that be in SoCal with Hollywood or NorCal/Central California with the San Fran/San Jose Tech industries, plus unbelievable campuses to spend that time and money on.

The biggest part of the draw of collegiate sports is that isn't supposed to be about the money paying players shatters this.

It will destroy the sport noone will watch the NCAA if it stops being about the school and instead becomes a professional league. Just like noone watches MILB, the CHL/AHL, NFL Europa, or the G league.

You will also have a whole bunch of guys exploiting their college eligibility to try and get paid. The NCAA should just pull out of California entirely.

I am not American or an NCAA fan but I am very sceptical that people are fans because the players are not paid. The coaches are paid millions and the schools have endowments for sports alone that dwarf universities in other countries. It's absolutely a professional league - it's just the athletes are paid peanuts.

I'm pretty sure NCAA fandom is just the usual mix of culture and tribalism.

[LKN]

Hahaha if you think any one watches college sports because these kids don’t get paid. It’s a nice piece of marketing from the NCAA because precisely because they’re against athletes getting any kind of compensation. I hope the NCAA pulls out of California that would go a long way to destroying their credibility which is a good thing since they’re a corrupt organization to begin with.

They watch it because it's amateur sports. If the NCAA becomes a professional league people and viewed separate from the university/college people will tune out.

I hope the NCAA does leave cali if the schools want to set up their own professional league let them - they will fail.

imagine being the type of person that would stop watching just because players are finally able to make money off their own names.

Or *GASP* work as an instructor at a summer basketball/football camp. (yes - NCAA athletes have these kind of absurd restrictions put on them)

[chitownsports4ever]

Seriously, California would just create its own league. Every top 100 prospect would head out West to be apart of that league. Get the opportunity to make money while living out on the West coast. California has more than enough beautiful campuses to attract all the top prospects. You would see schools like Pepperdine become a bigger name in sports. If I was like the 80th ranked recruit, I could either go to VCU or live a couple years in Malibu California while having the chance to cash in on endorsement checks.

And yet the exact same thing can be done nowadays with players signing in the G-League and none of them do it.

G League is not the same marketing structure. Top 4 or 5 guys in their class could sign with UCLA or Stanford, USC, still get network TV time to play, sign their shoe contract a year early, maybe even pick up some local endorsements.

Meanwhile...you don’t think a school like Arizona and possibly even UNLV goes with them? Hell Sean Miller has been organizing his players getting paid for years. They are a natural to join thus new association and walk away from the NCAA.

Plus these schools, with access to the top talent each season, could negotiate their own TV deal without having to share any of it with the rest of the NCAA? And who would stop them from sharing those profits with the players as a further enticement?

And rich boosters...they can now offer 50k, 100k, 200k “endorsement” deals to help draw top prospects to their school.

Kentucky and Pitino is going to just sit back and watch the talent go out West? They would line up next to join. Ohio St loves to find ways to draw talent to their school...count them in.

And ditto this scenario in football too.

This is how the NCAA falls apart. And why they absolutely should be worried about this scenario happening. I could see the very top guys making 500k to a million in their one season of college ball. This new association will distance its self completely away from anything the NCAA is trying to do. There will be zero notion of “amateur” basketball or football player.

Tell me, how does the NCAA try to compete with that competition model? Without loosening most of their rules themselves.

Do you understand how the system works ?

Most college athletic programs are subsidized to some degree by the school but what you are saying is that California schools will now `100% foot the bill of every sports program ? In many cases you are going to go to the taxpayer and have them, foot the bill for a 200k scholarship for a guy staying in college only one year so he can make a few thousand

How will this scholarship work ? Ever heard of fasfa ? merit or need based aid How many scholarships will the team now have 20? 30 ? I cant believe some of you think that these non profit colleges and there are a ton in California for all these guys who wouldn't qualify get onto these colleges normally to come there for a few months just to make a few bucks .

This doesn't break the NCAA or even come close its a bill passed to get the NCAA to move faster