Authors and Sponsors of CA’s NIL Law Urge Universities to Stay Competitive by Making NIL Deals Directly with College Athletes
State Senators Nancy Skinner, D-Berkeley, and Steven Bradford, D-Gardena, joint authors of the groundbreaking law, SB 206, the Fair Pay to Play Act, are urging California universities to stay competitive in college sports by taking full advantage of SB 206 and enter into name, image, and likeness (NIL) deals directly with college athletes.
Sens. Skinner and Bradford, along with the co-sponsors of SB 206, Ramogi Huma, executive director of the National College Players Association, and antitrust economist Andy Schwarz, have penned an open letter to California colleges and universities, calling on them to take full advantage of California’s NIL law. That 2019 law, which made California the first state to give college athletes the right to earn NIL money, also permits California colleges and universities to enter into NIL deals directly with college athletes and to pay NIL money directly to athletes. The law also prohibits the NCAA and conferences from preventing such NIL deals or pay.
“SB 206 changed the world of college sports. Today, college athletes in every state are earning money for their talent and hard work. But to date, California colleges and universities do not appear to be taking full advantage of the Fair Pay to Play Act. SB 206 allows colleges and universities to enter into NIL deals directly with college athletes and pay athletes NIL money,” Sen. Skinner said. “I strongly urge California schools to make full use of SB 206 to stay competitive in college sports, especially now that other states are copying California and allowing their schools to make direct NIL deals with their student athletes.”
The open letter points out that other states have recently enacted new laws allowing colleges and universities in their states to make NIL deals directly with college athletes. California doesn’t need to enact such a law because SB 206 already includes this provision. The open letter is also addressed to college athletes, recruits and their parents, athlete agents, conferences, and the NCAA to raise awareness about SB 206’s provisions.
“It’s important that California’s higher education institutions use all of the tools made available to them under California’s landmark Fair Pay to Play Act in order to attract the best talent among student-athletes,” Sen. Bradford said. “This is a win-win. As a proud joint-author of this legislation with Senator Skinner, we know that colleges and universities have the clear legal authority to enter into direct NIL deals with players, thereby providing both economic empowerment to the student-athletes and on-the-field success for California’s collegiate athletic programs.”
“In 2019, I worked very closely with Senator Skinner and her staff on the precise language of what is now the Fair Pay to Play Act, and at one critical juncture, a committee attempted to add language that would have prohibited direct NIL payments to college athletes,” Andy Schwarz said. “Along with Senator Skinner, Senator Bradford, and Ramogi Huma, I fought very hard to change that proposed amendment to the law. The compromise we landed on was to prohibit direct payments to high school students (a.k.a. ‘prospective student athletes’) but not to college students, nor to prohibit offers to high school students of payments that would be made upon enrollment. The final language adopted into law reflects this compromise and was critical to my support of the bill.”
“Any state that doesn’t have a similar law is putting their colleges at a severe disadvantage in recruiting and retaining their athletes,” Ramogi Huma said. “Early signing dates and the football transfer portal window will start in November and December. The National College Players Association is available to help other states take measures to guarantee their colleges, recruits, and current athletes have the same freedoms prior to signing days and the transfer window.”
In recent months, Georgia, Illinois and Virginia have enacted new laws specifically allowing colleges and universities in their states to make NIL deals directly with their college athletes. In addition to already including that provision, SB 206 also allows a college or university to enter into a direct NIL deal with a recruit as long as the college or university doesn’t pay NIL money to the recruit until they become a student at the school and participate in college sports.
The authors and sponsors of SB 206 decided to write the open letter because California colleges and universities do not appear to be maximizing SB 206’s provisions. To date, most NIL deals are being made directly between NIL entities — such as a sports drink or sports apparel company — and college athletes. Or they’re being made between NIL collectives — wealthy boosters — and athletes.
But, the letter notes, SB 206 allows for more than just those types of NIL deals. “SB 206 allows for more than just commercial entities and collectives offering NIL deals. For example, under SB 206 California colleges and universities could enter into enter into a sports apparel or sports memorabilia deal with their student athlete and the athlete would be paid directly by the college for the college’s use of the athlete’s name, image, or likeness on the college-issued apparel or memorabilia,” the letter notes.
In addition, SB 206 prohibits the NCAA or any athletic conference from punishing California colleges or universities or a college athletes for entering into such direct deals. Nonetheless, it does not appear that California colleges and universities are utilizing this provision.
The letter also notes that the national recruiting early signing windows begin on November 13 for all sports except football, which begins on December 4. Also, transfer portal windows begin in November and December.
Recruits and athletes can get more information and updates on this issue from the National College Players Association by registering at this link: https://www.ncpanow.org/#form
Sen. Skinner represents the 9th Senate District and is chair of the California Legislative Women’s Caucus and the Senate Housing Committee.
Sen. Bradford represents the 35th Senate District and is chair of the Senate Energy, Utilities and Communications Committee.