{"id":3666,"date":"2020-10-31T22:13:34","date_gmt":"2020-10-31T22:13:34","guid":{"rendered":"http:\/\/financialliteracyforstudentathletes.com\/?p=3666"},"modified":"2020-10-31T22:43:30","modified_gmt":"2020-10-31T22:43:30","slug":"the-ripple-effects-of-californias-fair-pay-to-play-act","status":"publish","type":"post","link":"https:\/\/financialliteracyforstudentathletes.com\/?p=3666","title":{"rendered":"The Ripple Effects of California\u2019s \u2018Fair Pay to Play\u2019 Act"},"content":{"rendered":"\n

A state law allowing athletes to profit on their name, image, and likeness has sparked similar legislation across the countryBy Tyler Tynes<\/a>  Oct 11, 2019, 6:55am EDT<\/p>\n\n\n\n

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NancyNancy Skinner remembers listening to a lecture by the esteemed sociologist and civil rights activist Harry Edwards when she was a student at the University of California, Berkeley. Edwards told tales of how black athletes discussed boycotting the 1968 Olympics to protest racism in America. One of those athletes was Kareem Abdul-Jabbar, Skinner\u2019s favorite basketball player and an outspoken critic of the NCAA. As Skinner embarked on a political career in the Bay Area, first as a Berkeley City Council member, she often wondered how an economic model built on denying athletes a share of the profits they generate had survived for so long.<\/p>\n\n\n\n

\u201cI would say, for a good number of decades, I really viewed this issue as primarily an issue of civil rights and exploitation of black student-athletes,\u201d she tells me.<\/p>\n\n\n\n

In 2015, Skinner met Andy Schwarz, an antitrust economist and a critic of the NCAA, at a Rotary Club event in Oakland. Skinner was preparing a run for the state Senate seat representing California\u2019s 9th District and asked Schwarz whether there was a way for a state legislator to create a more equitable environment for college athletes. Schwarz said it was possible.<\/p>\n\n\n\n

Skinner won the election in 2016 and took office the following year. In February, after two years of research and consulting with athletes and advocates, she introduced Senate Bill 206<\/a>, the \u201cFair Pay to Play Act,\u201d in the California State Senate. The law prevents universities from punishing athletes for being paid for the use of their name, image, and likeness (NIL)<\/a> and allows athletes to sign with licensed agents. The bill, which easily passed the Legislature and was signed by the governor, is scheduled to go into effect in January 2023. It\u2019s a significant piece of policymaking, but it doesn\u2019t achieve everything Skinner wanted. It falls short of her ultimate ambition of letting athletes earn a share of the revenues they help generate in the multibillion-dollar college sports industry.<\/p>\n\n\n\n

\u201cI\u2019ll be honest, originally I wanted to pay student-athletes,\u201d Skinner admits. But allowing athletes to profit from their NIL, she says, was the most logical, achievable, and cost-effective legislative action, and would \u201cnot really have any direct costs on the colleges themselves,\u201d she says.<\/p>\n\n\n\n

The bill is a symbolic achievement, but it does not, as its critics suggest<\/a>, upend the current system. Athletes, especially basketball and football players, will finally have the right to earn money on their NIL, but the bill doesn\u2019t create any mechanisms that would allow them to profit from their labor. It places the onus on those same athletes to find the money\u2014through endorsement deals, for instance. Still, it\u2019s important progress and a corrective measure in a structure that prevents players from earning any above-the-table income.<\/p>\n\n\n\n

\u201cSB 206 addresses this civil rights issue of today, which is about fairness and equity,\u201d state Senator Steven Bradford, Skinner\u2019s cosponsor on the bill, said in a statement. \u201cOur colleges and universities should no longer treat student-athletes as chattel, but as the valued individuals they are.\u201d<\/p>\n\n\n\n

The bill passed last month by a 39-0-1 vote in the state Senate and 73-0-6 in the Assembly, but Skinner says there was strong opposition. In July, university athletic directors and administrators voiced their displeasure during committee hearings<\/a>, arguing that the bill could lead to schools being expelled from the NCAA. Skinner says some of her colleagues resisted her when she was gathering support for the bill.\u201cFor a good number of decades, I really viewed this issue as primarily an issue of civil rights and exploitation of black student-athletes.\u201d \u2014Nancy Skinner<\/q><\/p>\n\n\n\n

\u201cTo be perfectly blunt,\u201d she says, \u201chad you asked me in March if I thought that that bill would end up being [a] unanimous bill, I would\u2019ve told you, \u2018Never, no way.\u2019\u201d Skinner also worried that California Governor Gavin Newsom would veto it. \u201cWe did know that the colleges were really increasing their pressure on him,\u201d Skinner says. \u201cThere was a full-court press on the governor to get him to veto the bill.\u201d<\/p>\n\n\n\n

Newsom signed the bill to much national fanfare, explaining his decision on LeBron James\u2019s HBO show The Shop<\/em><\/a>.Sitting in a barber\u2019s chair alongside James, Newsom said, \u201cI don\u2019t want to say this is checkmate, but this is a major problem for the NCAA. It\u2019s going to change college sports for the better by having now the interests, finally, of the athletes on par with the interests of the institution.\u201d Newsome believes he\u2019s rebalancing the scales of power, that California is the leader in what will become a \u201cnational movement\u201d of disruption.<\/p>\n\n\n\n

In a statement, the NCAA said<\/a> that it \u201cagrees changes are needed to continue to support student-athletes, but improvement needs to happen on a national level through the NCAA\u2019s rules-making process.\u201d Pac-12 commissioner Larry Scott said it would \u201clead to the professionalization of college sports and many unintended consequences.\u201d Other California schools, like Stanford and Skinner\u2019s alma mater, Cal, stressed the need for holistic changes to NCAA bylaws to keep the playing field fair. Gene Smith, Ohio State\u2019s athletic director, said<\/a> that if the bill stayed the same by its implementation in 2023, he would stop scheduling games against California schools.<\/p>\n\n\n\n

In the weeks after the passage of SB 206, legislators in at least nine states<\/a> have started preparing similar bills. In Congress, Ohio Representative Anthony Gonzalez, a Republican and a former Buckeyes wide receiver and NFL first-round draft pick, is proposing<\/a> legislation to allow athletes to earn endorsement money. His measure comes after a similar proposal from North Carolina Representative Mark Walker, also a Republican, who proposed a bill earlier this year to amend the tax law to allow third parties to play players. Connecticut Senator Chris Murphy, a Democrat, said<\/a> he is working on his own legislation. Democratic presidential candidate Cory Booker, who played football at Stanford, announced<\/a> a sweeping plan this week to provide federal oversight to college sports.<\/p>\n\n\n\n

In an interview last week with The<\/em> Indianapolis Star<\/em>, NCAA president Mark Emmert repeated<\/a> the familiar rhetoric of amateurism\u2019s staunchest defenders. \u201cThe biggest worry is that when you have complete unfettered licensing agreements or unfettered endorsement deals, the model of college athletics is negligible at best and maybe doesn\u2019t even exist.\u201d<\/p>\n\n\n\n

Last week, Seton Hall University pollsters conducted a national survey of 714 Americans and found<\/a> that 60 percent of respondents were in favor of athletes being paid for their NIL, with 32 percent rejecting it. The disparity increased along age lines: 80 percent of 18- to 29-year-olds were in favor, while those 60 and over were split. California\u2019s bill has created a national momentum that the NCAA will find difficult to contain. The groundwork, at least, has been laid.<\/p>\n\n\n\n

\u201cThis is a tidal wave, and what\u2019s clear is the ball\u2019s in NCAA\u2019s court now,\u201d Skinner says. \u201cThey have the power to give this right to every student-athlete across the entire U.S., and they should, and then there would be no arguments around one state having an advantage over another state. But if they don\u2019t, then I think we\u2019re going to continue to see states acting just as California has.\u201d<\/p>\n\n\n\n

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In 1995, UCLA star linebacker Donnie Edwards was suspended for one game<\/a> and ordered to pay restitution of $150 to a charity after an NCAA investigation determined that an agent had purchased groceries for him. According to the Los Angeles Times<\/em>, Edwards said he didn\u2019t know who had paid for the groceries. He had recently told an interviewer \u201chow hard it is for student-athletes to buy enough food under the current scholarship system, and because we can\u2019t work during the year.\u201d After his suspension was handed down, Edwards said, \u201cI want to stress that I feel I did not do anything wrong.<\/p>\n\n\n\n

It stunned his teammate and fellow linebacker Ramogi Huma that college players could be punished over food. Edwards\u2019s suspension was the catalyst for Huma\u2019s ideology about the hardship that amateurism causes college athletes. For more than two decades, Huma has been one of the nation\u2019s leading advocates of changing NCAA policy. He launched an advocacy group in 2001 called the Collegiate Athletes Players Association, saying at the time<\/a> that they \u201cplan on being a permanent fixture in college sports.\u201d<\/p>\n\n\n\n

Huma advised Skinner\u2019s staff on the drafting of SB 206 and has consulted with legislators<\/a> crafting similar bills in Pennsylvania and New York statehouses. For him, these legislative efforts are about the liberation of unpaid labor. He sees this phase as the beginning and wants to clear the way for more impactful policy changes.<\/p>\n\n\n\n

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\u201cThe lawmakers should be in control given the NCAA has been abusive. It\u2019s been a predatory entity, and the states don\u2019t have to put up with that,\u201d Huma tells me. \u201cI think that\u2019s a big part of what [SB 206] is doing. Does it get everything? No. Do we want everything? Yes. \u2026 Are you asking if this is a grand slam? No, I think it might be a triple. Because there\u2019s going to be additional points scored.\u201d<\/p>\n\n\n\n

Huma faces considerable challenges. Sharing revenue with players remains a nonstarter for the NCAA and its member institutions, even as revenues for the highest-earning college sports have skyrocketed. The NCAA announced an $8.8 billion extension in 2016 with CBS Sports and Turner for the rights to broadcast its men\u2019s basketball tournament. ESPN has a $7.3 billion deal to broadcast the College Football Playoff through the 2025 season. Amateurism remains despite evidence of the value players provide. In 2011, a Drexel University study found<\/a> that the average Division I basketball player had an annual fair-market value worth $265,000\u2014and that the highest-profile player was worth as much as $1 million. The public support for paying players varies by the year. A 2015 Marist Poll found<\/a> that 65 percent of Americans were opposed to paying college athletes. This March, a ScottRasmussen.com poll found<\/a> that 52 percent of Americans want athletes to be paid.<\/p>\n\n\n\n

Huma is pushing policymakers to consider legislation around NIL as a first measure toward changing amateurism. In Pennsylvania, state representatives Ed Gainey and Dan Miller, both Democrats, cosponsored a Fair Pay bill<\/a>. Gainey believes equity is important, specifically to even the playing field for black athletes. His bill calls for third parties to provide the economic benefits not granted in the current system.<\/p>\n\n\n\n

\u201cI think that\u2019s what agents do,\u201d Gainey tells me. \u201cI think that everybody has a lane to play. I think where we get it all confused and convoluted is when we get in each other\u2019s lane.\u201d Gainey\u2019s idea of equity is useful in terms of passing legislation that won\u2019t be seen as revolutionary or controversial. That, in itself, is a tool to push powerful bodies to consider enacting change. \u201cParticularly when we\u2019re talking about African American athletes, that you and I know have made a lot of these universities a lot, a lot, a lot of money. Made these corporations a lot, a lot, a lot of money. And at the end of the day, we talk about, \u2018Well, they get an education.\u2019 I mean that\u2019s great, but if I made you some millions and billions of dollars, I gave you a great education, too.\u201d\u201cDoes it get everything? No. Do we want everything? Yes. Are you asking if this is a grand slam? I think it might be a triple. Because there\u2019s going to be additional points scored.\u201d \u2014Ramogi Huma<\/q><\/p>\n\n\n\n

New York state Senator Kevin S. Parker, a Democrat, takes the original California legislation a step further. His proposal<\/a> presents NIL as the path to payment but calls for a 15 percent share of ticket sales to be split among all student-athletes who compete for a school. His proposal also requires colleges to create an athletic fund for injured players. He views his bill as a \u201clast step\u201d to evening the pay gap in college sports.<\/p>\n\n\n\n

\u201cWe could argue about how much they\u2019re getting paid and all of this stuff. But, I mean, right now, I think the goal is to get economic equity on the table, and actually accomplished,\u201d Parker says. He tells me this moment, when legislation like this is even on the table, is \u201crevolutionary.\u201d<\/p>\n\n\n\n

These efforts are part of a legislative blueprint to compensate college athletes, an issue supported by large parts of our culture. They are designed to pass with little controversy and minimal resistance. The substance of these bills isn\u2019t the primary issue. Policy is not made for revolution. It is based on incrementalism. It is a plug-and-play sport and often doesn\u2019t go far enough to reform corrupt systems. The same gusto lawmakers have exhibited to push through policy proposals around NIL must persist so that athletic labor gets all of what it\u2019s owed, not just a sliver.<\/p>\n\n\n\n

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One of the major gripes opponents of the NCAA have with these NIL proposals is that they don\u2019t go far enough. They say they represent a minor, cosmetic adjustment to an unfair system. Players, a disproportionate number of them black, will continue to be denied a share of the revenue, and these bills and the public support for them provide the NCAA with ethical cover to continue to prop up amateurism.https:\/\/46959e5d62d023a8ae00f52164ab9e20.safeframe.googlesyndication.com\/safeframe\/1-0-37\/html\/container.html<\/p>\n\n\n\n

\u201cImagine plucking a chin hair, and then telling everybody you got a haircut,\u201d David West, a former NBA champion and chief operating officer of the Historical Basketball League<\/a>, tells me. West\u2019s venture aims to provide an alternative to the NCAA by creating a league that pays players a salary and provides full scholarships to attend schools and play basketball near where they live. He doesn\u2019t think the NIL measures go far enough. \u201cIt\u2019s a very, very small step and it still doesn\u2019t address the idea that the players should be compensated without some fine print having to figure out ways to have them compensated.\u201d<\/p>\n\n\n\n

The doomsday rhetoric around paying players has existed as long as the NCAA has operated. The argument is that college athletics will implode if players are paid. Yet when has that ever been true? In 1904, James Hogan was a football star at Yale and had a deal with a local cigarette company. J.T. Wilcox, the man paying Hogan, told the press,<\/a> \u201cThey buy our cigarettes, knowing that Hogan gets a commission on every box.\u201d And college sports stayed intact. When there is a black market, it is often because the free market is restricted or unjust for those that may need it to work the most.<\/p>\n\n\n\n

Since its inception at the turn of the 20th century, the NCAA has had difficulty enforcing its amateur ideals. In a 2011 piece in The Atlantic<\/em><\/a>, the historian Taylor Branch outlined the history of players profiting in a black-market system. <\/em>In 1929, the Carnegie Foundation published a report about schools providing financial inducements to players through schemes including no-show jobs and disguised booster funds. In 1939, players at Pittsburgh went on strike for better pay, which led to the \u201cSanity Code\u201d of 1948, an NCAA ruling prohibiting underground deals and mandating student-athletes be paid only through scholarships. Schools were so shocked by how widespread these illicit payments were that universities like Virginia said if their athletes were ever accused of being paid, they should be forgiven.<\/p>\n\n\n\n

As long as a system built on the exploitation of labor\u2014particularly unpaid black labor, which makes the system profitable\u2014remains in place, the deprivation of athletes\u2019 civil rights will continue. That\u2019s why advocates like Huma insist on using NIL as a continuation of the fight for equity\u2014not the end of it.<\/p>\n\n\n\n

\u201cThere\u2019s a map in the queue,\u201d Huma tells me. \u201cI think the map is the compass that points to equal rights. We will not stop fighting until college athletes have equal rights. Rights that are afforded to other students and American citizens.\u201d<\/p>\n\n\n\n

It is fair to ask how many people in modern college athletics will benefit from these bills, or earn money from their NIL. Huma understands the concerns. I ask him about the driving force behind getting this right, not just with one bill, but with his entire campaign for athletic equality. Huma thinks back to the day his buddy was hungry at UCLA, in 1995, and how forceful the NCAA was in ensuring that he be punished. Huma was once under the weight of the NCAA\u2019s rules; now he\u2019s among its most forceful opponents, pounding the pulpit from the same state that made them feel small all those years ago.<\/p>\n\n\n\n

\u201cThat is not America,\u201d he says. \u201cThat\u2019s not something that we think anyone should tolerate. I think this speaks to a power dynamic that has long been one-sided.\u201d <\/p>\n","protected":false},"excerpt":{"rendered":"

A state law allowing athletes to profit on their name, image, and likeness has sparked similar legislation across the countryBy Tyler Tynes  Oct 11, 2019, 6:55am EDT NancyNancy Skinner remembers listening […]<\/p>\n","protected":false},"author":2,"featured_media":3682,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[83],"tags":[],"class_list":["post-3666","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fair-pay-to-play-act"],"yoast_head":"\nThe Ripple Effects of California\u2019s \u2018Fair Pay to Play\u2019 Act - Financial Literacy For Student Athletes<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/financialliteracyforstudentathletes.com\/?p=3666\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Ripple Effects of California\u2019s \u2018Fair Pay to Play\u2019 Act - 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