Fair Pay to Play Act explained

State:California
Full Name:Fair Pay to Play Act
Status:current
Introduced:February 4, 2019
Assembly Voted:September 9, 2019[1]
Senate Voted:May 22, 2019
Signed:September 30, 2019
Sponsors:Sens. Nancy Skinner, Scott Wilk, Steven Bradford
Governor:Gavin Newsom
Code:Education Code
Resolution:SB 206

The Fair Pay to Play Act, originally known as California Senate Bill 206,[2] is a California statute that will allow collegiate athletes to acquire endorsements and sponsorships while still maintaining athletic eligibility.[3] The bill would affect college athletes in California's public universities and colleges.

History

The bill was introduced by Senator Nancy Skinner[4] and co-authored by Scott Wilk and Steven Bradford.[5] The bill passed the California State Senate 31 to 5, with Shannon Grove voting against the bill, on May 22, 2019,[6] with the California Assembly unanimously passing it on September 11, 2019.[7] The bill was bolstered by testimony from former Stanford women's volleyball star and 2015 national freshman of the year Hayley Hodson, and Oklahoma State University football star Russell Okung.[8] [9] [10] [11]

The impetus for the bill came when Skinner met antitrust economist Andy Schwarz.[12] [13] Schwarz had been involved in the O'Bannon litigation and was looking for a new way to advance athletes rights after that case had resulted in only modest gains.[14]

The Supreme Court's recent decision in NCAA v. Alston sheds light on modern federal attitudes towards student athlete compensation.[2] In this case, the Court struck down any potential limitations on education-related benefits that student athletes may receive.[2] Most notably, the Court—and especially Justice Brett Kavanaugh—rejected the NCAA's "amateurism" argument as an overly broad and outdated defense for failing to allow its revenue-drivers (i.e., student athletes) to receive compensation.[15] The NCAA contended that the Court should defer to its amateurism model because it is a joint venture along with its member schools, but the Court instead reasoned that deference was inappropriate since the NCAA has a monopoly in the relevant market.[15] The Court further rejected the NCAA's appeal that it was not a "commercial enterprise," noting the "highly profitable" and "professional" nature of certain college sports.[15] Shortly after the Court's decision in Alston, the NCAA issued an interim name, image, and likeness policy which permits student athletes to earn this type of compensation.[16] States have also followed suit by enacting their own laws.[17] For example, Illinois Public Law 102-0042 permits athlete to receive market-value compensation for use of their name, image, and likeness.[18]

Gavin Newsom signed the bill into law on September 30, 2019. The law was scheduled to go into effect in 2023, but was moved up to an effective date of September 1, 2021 thus enabling student-athletes to own their own name, image, and likeness, and profit from them, just like any other college student or citizen can.[19] [20]

Notes and References

  1. Web site: SB-206 Collegiate athletics: student athlete compensation and representation. . California Legislature Information . 13 September 2019.
  2. News: Anantharaman . Maitreyi . California Lawmakers Pass Bill Allowing College Athletes To Profit From Endorsements . 13 September 2019 . . 10 September 2019.
  3. News: Scott . Jason . California Lawmaker Introduces 'Fair Pay to Play Act' . 13 September 2019 . Athletic Business . February 2019.
  4. News: Anderson . Bryan . College athletes could soon get paid in California, but not from the NCAA . 16 September 2019 . . 6 February 2019.
  5. News: California Legislature OK's SB 206, 'Fair Pay to Play Act' . 16 September 2019 . SCVTVNews . 13 September 2019.
  6. News: McWilliams . James . A CALIFORNIA BILL WOULD LET COLLEGE ATHLETES SIGN ENDORSEMENT DEALS, IN SPITE OF THE NCAA . 16 September 2019 . . 14 June 2019.
  7. News: Ackerman . Nathan . Sturges . Amanda . California passes Fair Pay to Play bill . 16 September 2019 . . 11 September 2019.
  8. News: This state senator once caused McDonald's to change. No wonder she took on the NCAA. . 2021-06-30 . Chuck Culpepper . . Washington, D.C. . 0190-8286 . 1330888409.
  9. Web site: Senators Bradford and Skinner Respond to NCAA's Announcement on Name, Image, and Likeness . April 30, 2020 .
  10. News: Should college athletes profit from their prowess? NCAA says no, but California may say yes . Calmatters . July 3, 2019 . Mello . Felicia .
  11. Web site: If college athletes could profit off their marketability, how much would they be worth? In some cases, millions . .
  12. Web site: 2021-07-01 . How California paved the way for college athletes to cash in big . 2023-04-27 . Los Angeles Times . en-US.
  13. News: The California governor signed a law to let NCAA athletes get paid. It's unclear what's next. . September 10, 2019 . . https://web.archive.org/web/20230227145049/https://www.washingtonpost.com/sports/colleges/california-lawmakers-voted-to-let-ncaa-athletes-get-paid-its-unclear-whats-next/2019/09/10/80d0a324-d3e6-11e9-9343-40db57cf6abd_story.html . February 27, 2023 . live .
  14. Web site: 2014-12-12 . Sports economist Andy Schwarz '89 answers key O'Bannon v. NCAA questions . 2023-05-03 . en-US.
  15. https://www.supremecourt.gov/opinions/20pdf/20-512_gfbh.pdf
  16. http://ncaaorg.s3.amazonaws.com/ncaa/NIL/NIL_InterimPolicy.pdf
  17. Pay to Play: Looking Beyond Direct Compensation and Towards Paying College Athletes for Themselves . Washington University Journal of Law & Policy . January 2021 . 65 . 1 . 213–246 . Tepen . Luke .
  18. Web site: Illinois General Assembly - Full Text of Public Act 102-0042 .
  19. Web site: California defies NCAA as Gov. Gavin Newsom signs into law Fair Pay to Play Act. Dan. Murphy. September 30, 2019. ESPN.
  20. Web site: Skinner and Bradford Move up Effective Date of Fair Pay to Play Act to Sept. 1, 2021 . June 21, 2021 .