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How states forced the NCAA’s hand on student athlete endorsements

Wednesday, October 30th, 2019

Mackenzie MaysAndrew AtterburyThe NCAA’s surprise decision Tuesday to allow student athletes to earn endorsement money was spurred by an unlikely alliance of states that typically disagree on everything from abortion to immigration.

Pressure from states, with California taking the lead and Florida, New York and New Jersey quickly piling on, broke down a longstanding NCAA rule prohibiting student athletes from earning money from endorsements and other outside sponsorships.

Their stand appears all but certain to change the landscape of college sports. On Tuesday, the NCAA Board of Directors voted unanimously to allow students to financially benefit from the use of their name, image and likeness “in a manner consistent with the collegiate model.”

The vote comes after more than a decade of complaints and festering cynicism over the status of student athletes — who earn nothing while their colleges and coaches reap riches — and just a month after California Gov. Gavin Newsom signed the Fair Pay to Play Act on the set of LeBron James’ HBO show, “The Shop.”

“Without the public clearly on the side of the rights of student athletes, and the governor signing my bill, and the rest of the states following suit, the NCAA absolutely wouldn’t have acted,” said California state Sen. Nancy Skinner (D-Berkeley), who authored the legislation Newsom signed. “Whether you come from the fact that this has been an exploitation of black athletes or come at it from that it’s just a violation of every free-market principle … it’s a change that was so ripe for right now.”

A profusion of similar state and federal efforts have since kicked off to fight the billion-dollar behemoth that is the NCAA.

On Oct. 24, Florida Gov. Ron DeSantis, an ardent sports fan and former Yale baseball captain, said he would back legislation to allow student athletes to profit from their names and likenesses.

The Republican was struck to get behind the movement while watching a football game at the University of Florida’s stadium, commonly called “The Swamp.” As he watched the Florida Gators and Auburn University duke it out in Gainesville, Fla., he wondered why members of the marching band could make money on YouTube, but the players couldn’t.

The issue has bipartisan support in Florida and is “gonna have legs,” DeSantis told reporters Tuesday as NCAA leaders huddled in Atlanta.

DeSantis credited California for opening the door, but said that another powerhouse college athletic state joining the fray added to the resistance that turned the tide. Florida is home to the University of Florida, Florida State University, the University of Miami and other schools with massive athletic programs that battle to win top recruits.

The argument in the Sunshine State has centered on athletes deserving to participate in an economy that was built on the backs of students. Social media platforms are ripe for student athletes to cash in, lawmakers have noted, but they’re forbidden by current NCAA rules from doing so.

Colorado, Illinois, Minnesota, Nevada and Pennsylvania are among those following the Golden State’s lead. All are weighing legislation to allow student athletes to be paid in outright defiance of the NCAA.

“It’s about time. The status quo was clearly unacceptable,” New Jersey Gov. Phil Murphy, a Democrat, said in an interview on News 12 late Tuesday.

The political talking points of state lawmakers vary, but the central sentiment and intended outcome are the same: Student athletes should be allowed to benefit from their talents.

The NCAA, the Pacific-12 Conference, coaches and others have fought state efforts to make their own rules, saying a patchwork of policies would cause confusion and the “professionalization” of college sports would create an unfair playing ground for half a million student athletes nationwide.

“We must embrace change to provide the best possible experience for college athletes,” Michael Drake, NCAA board chair and president of Ohio State University, said in a statement Tuesday.

A wave of state-level bipartisanship has quickly rolled over those arguments. And the NCAA’s vote on Tuesday won’t stop state lawmakers from adopting their own rules and creating the patchwork the association is trying to prevent.

New Jersey state Sen. Joseph Lagana (D-Bergen), a former college athlete who is sponsoring student athlete legislation, said piecemeal legislation isn’t ideal but had to happen.

“Sometimes you need to send a shot across the bow for things to get moving,” he said.

On the liberal West coast, racial justice issues have taken center stage in the debate to reform an industry where predominantly white coaches are being compensated while black athletes who sacrifice their bodies for certain sports are not.

During committee hearings in Sacramento this summer, Los Angeles Chargers football player Russell Okung, who is black, told lawmakers that the NCAA uses exploitative policies and “outdated logic rooted in slavery.”

Meanwhile, red states including Kentucky and South Carolina have joined the fight, calling it a common-sense free market proposal.

Sen. Mitt Romney of Utah, a former Republican presidential candidate, and New Jersey Senator Cory Booker, who is vying for the Democratic presidential nomination, have both called for NCAA reform this month despite being political polar opposites on other policy issues.

Former UCLA gymnast Katelyn Ohashi spoke out earlier this month against not being able to benefit from her stellar senior year, including being metaphorically “handcuffed” by the NCAA, she said, which restricted her from receiving a YouTube check for her perfect floor routine that went viral earlier this year.

“For us to regulate their ability to monetize what they’ve built up over time strictly because they’re student athletes, it goes against a free market,” Florida state Rep. Kionne McGhee (D-Cutler Bay) told POLITICO. McGhee and Chip LaMarca (R-Lighthouse Point) have each filed student athlete bills in Florida.

While the NCAA received praise for Tuesday’s decision — a move that followed months of threats from the athletic association that if the California legislation passed it could lead to the state’s schools being disqualified from competitions — state lawmakers aren’t backing off.

“California will be closely watching as the NCAA’s process moves forward to ensure the rules ultimately adopted are aligned with the legislation we passed this year,” Newsom said in a statement Tuesday.

LaMarca said he is cautiously optimistic.

“We will continue working to make sure they keep the promises they have made to our student athletes today,” he said in a written statement.

Miami Dolphins player Davon Godchaux issued a statement praising the Florida legislation, and gave states credit.

“If this is something that made the NCAA comfortable,” he said, “they would have done this a long time ago.”

Carly Sitrin contributed to this report.

This article was originally published by Politico on October 29, 2019. Reprinted with permission. 

About the Author: Mackenzie Mays covers education in California. Prior to joining POLITICO in 2019, she was the investigative reporter at the Fresno Bee, where her watchdog reporting of Rep. Devin Nunes and other politicians — and the fierce push back it provoked — made national headlines, including being the subject of a feature in GQ. She is well-versed in California education policy, having started at the Bee as the education reporter, where she covered Fresno Unified, the state’s fourth-largest school district. She was a national finalist for the Education Writers Association’s reporting award in 2018.

About the Author: Andrew Atterbury is an education reporter for POLITICO Florida Pro.

It’s time for ending NCAA amateurism to become a 2020 campaign issue

Monday, April 8th, 2019

As the 2020 presidential campaign kicks off, a slew of issues have already come to the forefront, including immigration, income inequality, the future of health care, reparations, and climate change. But, as another March Madness wraps up, it’s time for the crowded field of candidates to add another issue to their platforms: Ending NCAA amateurism.

During this year’s men’s basketball tournament, the NCAA earned almost $800 million from television rights alone. Coaches, schools, and conferences received millions of additional dollars worth of bonuses. And the athletes that actually played in those games earned absolutely no money. This might sound like a niche problem that only impacts a handful of the most talented student-athletes in the world — student-athletes that one would assume have better-than-even chance of turning pro, and raking in the millions. But this is not the case.

Every year, there are more than 460,000 student-athletes competing in 24 NCAA-sanctioned sports. Thirty-six percent of all student-athletes are people-of-color, and in the major revenue-generating sports, the student-athletes are disproportionately black: football is 48 percent black, men’s basketball is 56 percent black, and women’s basketball is 47 percent black. As their predominately white and male coaches and administrators continue to get richer, these athletes are cut out from earning a fair share.

It is an issue of inequity, and at this point, political pressure is the only thing that is going to fix it.

One candidate is already out in front on this issue. Andrew Yang — yes, the candidate who is running on a platform of universal basic income — lists “NCAA should pay athletes” as one of the tenets of his platform.

“We should create a new type of college athlete—’Performer athlete’—who is entitled to market-based compensation,” Yang says on his website. “This would not affect the status of any other student-athletes nor the tax-exempt status of the university. However, each university with a ‘Performer athlete’ would be required to start an affiliated taxable for-profit entity through which both corporate sponsorships and Performer-athlete salaries would flow.”

But this isn’t just a fringe issue parroted by a long-shot presidential candidate. Currently, there is a bipartisan push in Congress to address this issue. Three weeks ago, Rep. Mark Walker (R-NC) introduced the Student-Athlete Equity Act, a bill that aims to modify the tax code to remove the current rule that prevents student-athletes from using or being compensated for the use of their name, image, and likeness.

“A lot of these student-athletes come from impoverished communities, and there is a lot of money made on the backs of these young men and women. And these students, they can fight in the war, but they can’t have any access to their image or likeness,” Walker told ThinkProgress.

“I say, if you see injustice and you don’t do something about it, I think, shame on you. It doesn’t mean there aren’t other battles to fight.”

A couple of weeks after Walker unveiled his bill in the House, Sen. Chris Murphy (D-CT) released a report, which highlighted, among other things, the fact that in the last 15 years, the revenue for college athletics has more than tripled to a $14.1 billion high.

“Under the current system, students in big-time athletic programs are shortchanged on their education as the college sports machine demands more of their time and more pressure to win,” Murphy said. “Meanwhile, coaches, universities, broadcasters, and even shoe companies are raking in the cash and sending a relatively small percentage of the money to students in the form of scholarships. The NCAA needs to come up with a way to compensate student-athletes, at least in the sports that demand the most time and make the most money. It’s an issue of fairness. It’s an issue of civil rights.”

Murphy has not yet proposed his own bill, but he says he will continue to release reports that dig into the impact of amateurism, and will keep loudly calling for the NCAA to pay its athletes.

“Is there an easy solution? No. But the NCAA has created a complicated system of sponsorship and broadcast rights by which lots of adults get rich,” Murphy said. “They can figure out a way to get a percentage of that money to the students who are kept poor by a system that is designed to make lots of people rich except for the kids.”

Even as the end of amateurism gains momentum on the federal level, states have begun to take up this issue as well. In California, for example, state Senate majority whip Nancy Skinner (D) has put forth Senate Bill 206, also known as the Fair Pay to Play Act, which would allow student-athletes in California to earn money through corporate sponsorships, in a fashion similar to the amateur athletes who compete in the Olympic Games.

The truth is, ending amateurism isn’t just the right thing to do, it’s an increasingly popular position as well. It turns out, despite the NCAA claiming that if players were getting paid, nobody would want to watch college sports, this — shockingly! — is not the case. As SUNY Buffalo history professor Patrick F. McDevitt pointed out in HuffPost this time last year, the logic doesn’t track: “Surely, if people were put off by the idea of paying college athletes, then Division III schools (which do not offer scholarships, let alone give their players stipends) would have the largest fan bases and Division I schools caught funneling money to their star players would lose fans in the wake of pay-for-play scandals.”

Nothing’s changed in a year’s time. Last year, a big FBI investigation unveiled Adidas executives and agents helping facilitate payments to athletes if they agreed to go to certain Adidas-sponsored schools. This year, during March Madness, lawyer Michael Avenatti tried to make a big splash by claiming he had evidence that Nike paid families of top college basketball recruits. The news barely caused a ripple. And, despite all of this being public knowledge, ratings for March Madness have been just fine.

The public is ready for amateurism to end. The players are deserving of their due. The fans will cheer, no matter what. But unless the NCAA’s hand is forced, nothing about the current system is ever going to change. That’s why it’s crucial for the people who are running for the most powerful role in our nation to speak up and propose solutions to change the status quo.

Is this the most pressing problem facing society? Of course not. But, it is an injustice. And it can be fixed with just a little leadership.

This article was originally published at ThinkProgress on April 8, 2019. Reprinted with permission. 

About the Author: Lindsay Gibbs covers sports for ThinkProgress.

Why the NCAA Should Pay Student-Athletes—And Let Them Unionize

Friday, April 5th, 2019

When Zion Williamson’s foot broke through the sole of his Nike shoe on Feb. 20, the sporting world stood still.

The consensus number-one player in college basketball was playing in the biggest game of the season—North Carolina versus Duke—and suffered his startling injury in the opening minute. Williamson’s sprained knee cost Nike $1.1 billion in stock market valuation the next day.?

The injury came on the doorstep of March Madness, the NCAA’s most profitable event of the year—to the tune of $900 million in revenue.

Despite the billions riding on his performance, the NCAA insists that athletes like Williamson are “amateurs”—student-athletes there only for the love of the game. It forbids them to make money off their performance even as they support an industry worth billions. Duke alone makes $31 million off its basketball program.

Williamson has been a force of nature this season, captivating audiences and NBA scouts alike. Enticing those NBA scouts is the only way this 18-year-old can build his own future career—and any sort of injury imperils that future.

High-level “student-athletes,” after all, don’t get to spend much time being students.

They’re supposed to spend only 20 hours a week on sports-related activities. In reality, they spend around 40 hours on practice alone. Schoolwork falls by the wayside, so many schools have outside tutors do the players’ schoolwork and create classes-in-name-only where the only requirement is to turn in a paper.

A few years ago, some former athletes at the University of North Carolina sued the school and the NCAA, claiming they’d been denied a meaningful education. It’s hard to argue with that.

The athletes, in exchange for scholarships, give these schools their lives and put their health at risk. Concussions of football players have sparked lawsuits, and an injury like Williamson’s could cost a player millions in the professional leagues. If they can’t go pro—and their education didn’t do them any favors—what option do they have?

That risk is where the travesty lies. These thousands of athletes who play in the NCAA are often not allowed to enjoy the benefits of the schools they attend (and enrich). If they’re not able to make use of their education, they should be paid for the work they put in.

When college sports revenues are as high as they’ve ever been, the failure to pay the athletes is absurd—but not surprising.

Inequality of all kinds is on the rise, and the gap between the top and bottom of the pay scale is the highest since the Gilded Age of the early 1900s. The NCAA not allowing athletes to be paid—or even sign autographs for money!—is an extension of an economy where unions are busted and people have to work three jobs to make ends meet.

It needs to change. College basketball players are on average worth $212,080 to their program, much more than the cost of their scholarships.

Schools should pay these athletes a share of the revenue their sport brings in. And the NCAA needs, at the very least, to allow for these people to make money selling autographs or appearing at sports camps.

Just as importantly, athletes should be allowed to unionize their teams and fight for their own rights.

Billions of dollars are going to be spent on betting on March Madness games. CBS and Turner paid around $19 billion for the television rights to the tournament. And over $1 billion in advertising is spent on the tournament.

This event is all about the money. We should spread it around to the people who make it worthwhile.

This article was published at In These Times on April 5, 2019. Reprinted with permission. 

About the Author: Brian Wakamo is a researcher on the Global Economy Project at the Institute for Policy Studies.

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