California Governor Gavin Newsom signed the Fair Pay to Play Act (SB 206) into law Monday, allowing college athletes to receive compensation for endorsements.
Starting in 2023, student athletes attending four-year universities will be eligible to receive monetary compensation for the use of their likeness in advertisements and sponsorship deals. SB 206 will benefit both male and female student athletes in order to address the fiscally difficult task of paying for a college education. Other rationales for the bill come from data that shows that the majority of college athletes live below the poverty level, with no time to obtain outside work.
Newsom addressed this issue in a signing statement: “Due to their demanding academic and athletic schedules, student athletes are typically unable to work a part time job to help make ends meet.”
There are limitations for student athletes, especially in regard to a University’s discretion in allowing individual endorsement deals. Any private deals between students and companies that affect an institution’s existing endorsement agreements may be forbidden by the respective student’s university.
The National Collegiate Athletic Association (NCAA) has openly stated that it disagrees with the legislation and plans to take action. In a statement by the organization, the NCAA explained how this legislation could impact the nature of collegiate athletics in general.