Paying College Athletes

College student athletes generate millions of dollars in profits for schools, coaches, and conference and network executives—everyone, it seems, but themselves. College athletics operate under the National Collegiate Athletic Association (NCAA), a private nonprofit organization. Under current NCAA regulations, compensation for student athletes is limited to scholarships for their education. Meanwhile, universities enter multimillion dollar deals with cable networks and athletic brands—all of which profit from using athletes’ images in marketing campaigns, apparel sales, and ticket sales, among other revenue. In 2019, the California legislature passed a law in direct opposition to these NCAA regulations. California Governor Gavin Newsom noted that currently every college student, except athletes, can use social media and other platforms to market and monetize their name, image, and likeness. This restriction on college athletes will change under the new Fair Pay to Play Act, set to take effect in 2023. California student athletes will be able to monetize their social media followings, provide paid coaching, enter endorsement and advertising deals, and hire agents. Although the law allows student athletes to profit from third-party deals, it does not require, or even allow, schools to pay student athletes for their work beyond the scholarships they already receive. After some NCAA officials expressed concern that the Fair Pay to Play Act will advantage California schools in recruiting top athletes, the organization is working to change its long-standing athlete pay regulations. The NCAA board of governors recommended that its three divisions adopt new rules that would allow student athletes to receive compensation from the use of their name, image, and likeness. The NCAA expects this unprecedented rule change to apply for the 2021 to 2022 school year. In addition, a federal court recently found that NCAA limitations on student athlete compensation violate antitrust law. The NCAA, the court held, could preserve amateurism in college sports while increasing the organization’s current caps on education-related benefits that athletes can receive. The U.S. Supreme Court will soon review that decision, which paves the way for athletes to receive greater benefits such as “graduate school scholarships, study abroad opportunities, or computers.” Some commentators worry that pay-to-play rules would diminish the spirit of amateurism in college athletics. Others argue that the current system exploits student athletes—especially Black athletes who dominate the two biggest revenue-generating college sports, football and basketball. Some experts also note that new pay-to-play rules could benefit female college athletes who often have fewer opportunities than men to profit from their sport after college. This week’s Saturday Seminar explores legal issues surrounding pay-to-play rules and the future of amateurism in college sports