Michigan Senate OKs bills to let college athletes do sponsor deals
Two bills that would allow college athletes in Michigan to earn money through endorsements, sponsorships and similar arrangements easily passed the Senate on Wednesday.
The Senate did not debate either of the bills, voting 35-3 in support of each. Both received bipartisan support in the House earlier this year, meaning they head next to Gov. Gretchen Whitmer for final approval. A Whitmer spokeswoman did not immediately respond to a request for comment.
The bill does not allow athletes to start entering into these contracts until 2023. Originally, sponsors of the legislation wanted it to take effect this year. But the 2023 date puts Michigan on track with when college athletes can start earning money in California, the first state to enact such a measure.
Other states have passed laws that would allow athletes to start earning money sooner. Congressional lawmakers are weighing measures that would have a similar impact on a national level.
In October, the NCAA’s Division I Council introduced a proposal that would open the door to student athletes earning money
through their names and likenesses, reported USA TODAY. The proposal is set for potential final approval in January.
Right now, it’s illegal for student athletes to earn money from outside endorsements or similar arrangements in Michigan.
Under House Bill 5217, student athletes could enter into specific endorsement or sponsorship deals. That student athlete’s university or college, athletic conference or the NCAA could not revoke a scholarship or otherwise punish the student athlete for entering into these deals.
Student athletes would not be allowed to enter into a deal that could conflict with existing university contracts, though. For example, a college athlete playing at a school sponsored by Nike could not enter into a contract with Under Armour or some other apparel company that would require the athlete to wear non-Nike gear during a game.
The student athlete would also need to notify the school of any prospective deal at least seven days before signing the contract.
House Bill 5218 nixes parts of Michigan law that make it illegal for agents to work with student athletes and that prohibit student athletes or their families from receiving gifts.
Right now, college athletes across the country are largely banned from earning money or compensation apart from scholarships when they agree to play a varsity sport for a school. At the same time, colleges, coaches, the NCAA, conferences and others earn billions every year through college football, basketball and other sports. This arrangement has sparked considerable debate and lawsuits for years.
On Wednesday, the U.S. Supreme Court agreed to hear a case at the heart of the matter. The NCAA and 11 major collegiate athletic conferences oppose changes that would allow athletes to be compensated. The NCAA and conferences traditionally argued financial restrictions provide for a competitive balance while fostering the amateur spirit of college athletics.
Athletes argue it’s unfair for the students not to earn any
money from their performance when everyone else involved does.
“I think it would be hard to overstate the potential significance of it for a number of reasons, primarily because it is so rare for the Supreme Court to hear any cases involving the sports industry, much less college sports,” Gabe Feldman, director of the Tulane Sports Law Program and Tulane University’s associate provost for NCAA compliance, recently told USA TODAY. “And then, in this case, particularly to hear a challenge to the NCAA amateurism rules.”
The Michigan legislation also requires nonprofit trade groups representing colleges and universities to provide reports to the Legislature on any changes made by the NCAA and Congress as to whether student athletes can be paid.