California’s new bill could help lead the charge on college athlete pay

In 2019, California Gov. Gavin Newsom has signed the Fair Pay To Play ActThe NCAA was prohibited from penalizing student athletes who profited from their name, image, and likeness (NIL). The state law overtook NCAA rules so any college athlete could make money while playing.

Lawmakers from all political stripes in the nation quickly followed the lead and passed their own bills. The legislation was confirmed by courts. NIL is now an integral part of college athletics, even though it is still evolving.

“California has been very effective at putting forth trailblazing legislation,” state Assemblymember Chris Holden said. “It makes sense and then catches on around the country.”

California is back with Holden, who represents Pasadena. He spoke on Thursday before the Rose Bowl. Holden sponsored a law that will make college sports more accessible.

The College Athlete Protection Act will begin working its way through committees with optimism among backers that it can find its way to Newsom’s desk next fall and be signed. A similar bill was defeated last year.

CAPA takes a direct shot at the NCAA’s long-standing amateurism model by requiring schools to share profits from specific programs with its athletes, particularly those who graduate.

The bill allows schools to share up 50% of the revenue with athletes who compete on programs that generate twice the amount they spend on athletic scholarships.

At many places this would only include football and men’s basketball, although women’s basketball, gymnastics, ice hockey, volleyball and other sports can reach that threshold at certain schools.

The current student athletes would receive a salary cap of $25,000 per annum while they are in school. Colleges would have to reserve 50% annually to be paid out after six years. At major football programs, such as USC, that could equal about $200,000 a year per player — or $800,000 for a four-year career, according to some estimates.

The bill fell apart last year because of concerns about athletic departments not being able to pay football and basketball players. This would make it impossible for them to continue funding scholarships or entire teams in other non-profitable sports. In an attempt to avoid such cuts, this time there is another funding option.

A school that sees an increase in revenue — even a small amount — can allocate 50% of the so-called “new money” to pay the athletes in those sports. While this will likely mean less money for athletes, it’s still considered progress.

It is also the way, proponents argue, that existing budgets aren’t strained to the point of pulling back opportunities for others. UCLA and USC, for instance, are about enter the Big Ten Conference that holds millions in new funding. Under the new bill, this increase in revenue could help save money for these schools.

“Even though it won’t make the athletes whole, it will represent progress for those athletes,” said Ramogi Huma, a former UCLA football player and now president of the National Collegiate Players Association.

The bill also includes a ban of three years for athletic directors who cut scholarships or teams under these circumstances.

CAPA may have additional provisions. They could also be trimmed or increased as the legislation progresses.

It is likely that other states will adopt it if it passes, even if it is not for competitiveness. After the NIL bill passed in 2019, there was a fear that California schools would enjoy a significant recruiting advantage — why not go play where you can earn more than just a scholarship?

States started to match and even write more forgiving laws to compete with California and other states that have similar programs. Others have watched as the NCAA failed to stop payments to players or recruits. The public has quickly turned against the NCAA, and amateurism.

CAPA may have a slightly lower impact on an applicant’s advantage. NIL opportunities can be found anywhere, but the graduation payment is delayed and may not have the same impact as an immediate deal.

However, the NCAA is taking a strong stand against amateurism. It has been a long-standing belief that the NCAA can cling to the idea of amateurism even after many other international sports organizations have stopped supporting it. This would feature schools making direct payments to players — an addition to scholarships, academic awards and Pell Grants that are already allowed.

In 2019, college sports were unaware of the California Assembly’s actions, which led to basketball and football being quickly overtaken by it. We should not repeat this mistake.

Precisely how this will play out isn’t known, but if it passes as some expect it, college sports will be forever altered, perhaps significantly.