California’s new bill pushes revenue-sharing for college sports

California’s new bill pushes revenue-sharing for college sports

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Lawmakers in California on Thursday introduced a bill that would restructure how the athletic departments of the state’s colleges share revenues with athletes.

The proposed law, dubbed the College Athletes Protection Act, would require major fund-generating college sports teams to create a fund that pays players a portion of the team’s annual earnings. they get their degrees. The bill also proposes the creation of a 21-member national commission to regulate how schools devote resources to the protection and education of athletes.

Former San Diego basketball player and current chairman of the state’s Budget Committee, Chris Holden, unveiled the bill at a press conference in front of Rose Bowl Stadium on Thursday afternoon.

In a statement provided to ESPN, Holden said, “For years, the concerns of college athletes have been overlooked because they don’t participate in professional leagues.” These students should be on a fair path for their careers, whether they’re in the professional leagues or in the California workforce.”

The revenue-sharing portion of the bill seeks to create “fair market value compensation” for athletes. To do so, Holden’s bill includes a formula designed to ensure that half of the revenue generated by each college team is dedicated to players through either grant scholarships or revenue-sharing payments. increase.

For example, if the San Diego State basketball team generated about $6 million in revenue and spent about $500,000 on player scholarships, the school would have to set aside $2.5 million at the end of the year (half of total revenue minus the cost). of scholarships for players if the new bill becomes law).

Players are eligible to receive up to $25,000 annually at the end of the season, with additional money held in trust until graduation. For California’s most profitable college team, the formula could lead to hundreds of thousands of dollars being paid out to players with degrees.

The bill would allow schools to reallocate some funds as needed to make sure they didn’t violate Title IX rules that require schools to provide equal benefits to men’s and women’s teams. allow you to

Attempts to pass similar language in the California legislature last year were unsuccessful, but Holden’s position on the Appropriations Committee and growing pressure in several different states to push the NCAA to further change its rules. This makes it more likely that the bill will be enacted. According to Ramogi Huma, founder of the National College Players Association, you have to vote.

Huma worked with Holden and his staff to develop the bill as part of his work with the NCPA, an advocacy group that has driven reform of the NCAA for nearly two decades. The NCPA also helped push his 2019 California bill, which triggered changes to his NCAA rules that allow athletes to earn money from their names, images and likenesses.

The new bill also includes several provisions aimed at funding the health and welfare of athletes that the NCPA has sought to pass by other legislators at the state and federal levels. The rules will be overseen and enforced by a 21-member College Athletes Protection Committee appointed by state politicians.

Other items on the bill include:

  • Requirements and insurance plans for schools to cover medical costs for sports-related injuries. Requirements vary depending on the annual revenue generated by the sports sector.

  • A subcommittee of the University’s Athlete Protection Panel establishes rules for when athletes can return to play after an injury, along with other health and safety rules.

  • A subcommittee that certifies agents working with college athletes to secure endorsement contracts.

  • Athletes who maintain good academic performance as full-time students are guaranteed a scholarship for six years (or until the athlete completes their degree).

  • A requirement for schools to publicly share information about their current compliance with Title IX laws and the benefits they offer athletes designed to increase prospect transparency in the recruitment process.

  • A ban prohibiting any school from cutting one of its signature sports if the school’s athletic director makes more than $500,000 a year.

“The official position of the NCAA is that it has no obligation to protect or educate college athletes,” Huma said in a statement before Thursday’s press conference. We will protect your health and ensure that you are treated fairly in the business and educational aspects of college sports.”

The bill specifically states that payments to athletes should not be used as proof that the athlete is a school employee. Among them, the NCAA and its members have drawn a hard line in allowing athletes to be considered employees. Legal efforts are underway to obtain employee status for college athletes, but this bill is not intended to be part of that push.

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