California to allow endorsement deals

SACRAMENTO >> Defying the NCAA, California opened the way Sept. 30 for college athletes to hire agents and make money from endorsement deals with sneaker companies, soft drink makers, car dealerships and other sponsors, just like the pros.

The first-in-the-nation law, signed by Democratic Gov. Gavin Newsom and set to take effect in 2023, could upend amateur sports in the U.S. and trigger a legal challenge.

Newsom and others cast it as an attempt to bring more fairness to big-money college athletics and let players share in the wealth they create for their schools. Critics have long complained that universities are getting rich off the backs of athletes — often, black athletes struggling to get by financially.

“Other college students with a talent, whether it be literature, music, or technological innovation, can monetize their skill and hard work,” the governor said. “Student athletes, however, are prohibited from being compensated while their respective colleges and universities make millions, often at great risk to athletes’ health, academics and professional careers.”

The NCAA — which had called on him to veto the bill, arguing that it would destroy the distinction between amateurs and pros and give California an unfair recruiting advantage — said it is considering its next steps. It did not elaborate.

In a statement, the NCAA said it is working to revise its rules on making money off a player’s name and likeness. But it said any changes should be made at the national level through the NCAA, not through a patchwork of state laws.

California’s law applies to students at both public and private institutions — but not community colleges — in the nation’s most populous state. While the measure covers all sports, the big money is in football and basketball.

There are some limitations: Athletes can’t enter into deals that conflict with their schools’ existing contracts. For example, if your university has a contract with Nike, you can’t sign with Under Armour.

“A majority of these athletes, it’s no secret, are African American,” said Sen. Steven Bradford, a co-author of the bill who is black. “It’s an issue of fairness, and it’s an issue that has been long overdue.”

NBA rookie Jordan Poole of the Golden State Warriors welcomed the new law.