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US college athletes allowed to profit from endorsements

The US state of California has passed a law known as the Fair Pay to Play Act.

Senate Bill 206 allows college athletes to profit from their name, image and likeness and will take effect in 2023 if it survives potential litigation.

Equity

"This is a game changer for student athletes and for equity in sports," said National Basketball Association James Le Bron.

"Athletes at every level deserve to be empowered and to be fairly compensated for their work, especially in a system where so many are profiting off of their talents."

The Fair Pay to Play Act allows college athletes in California to sign endorsement deals; earn compensation based on the usage of their name, image and likeness; and sign all types of licensing contracts that would allow them to earn money.

College athletes may also engage an agent under the new law.

Health

"Collegiate student athletes put everything on the line – their physical health, future career prospects and years of their lives to compete," said Governor Gavin Newsom, as he signed the new law.

"Colleges reap billions from these student athletes' sacrifices and success but, in the same breath, block them from earning a single dollar. That's a bankrupt model -- one that puts institutions ahead of the students they are supposed to serve. It needs to be disrupted."