U.S. Markets closed

Shegerian & Associates: California Will Now Allow College Athletes To Profit From Endorsement Deals

NEW YORK and LOS ANGELES, Oct. 4, 2019 /PRNewswire/ -- California Governor Gavin Newsom signed a law that allows college athletes to receive endorsement deals. The first of its kind, the law is now requiring major financial reforms in college athletics and is being called unconstitutional by the National Collegiate Athletic Association. 

Senate Bill 206 by Sen. Nancy Skinner (D-Berkeley) prohibits the NCAA from barring a university from competition if its athletes are compensated for the use of their name, image or likeness beginning Jan. 1, 2023. The University of California system, California State University schools, Stanford and USC have all opposed the bill, citing fear of increased costs to ensure compliance with the law so as not to lead to fines or even expulsion from the NCAA.

Supporters of the bill claim that for young athletes, the bill could be transformative for athletes who are from poor backgrounds or of color. Many argue that colleges have long continued to profit off of athletes long after they left educational institutions and joined professional teams. Additionally, the bill is seen as creating new opportunities for female athletes, who find limited athletic success after college. 

If the new law survives possible legal challenges, college athletes would be able to sign endorsement deals. Smaller opportunities that were previously prohibited, such as paid youth coaching positions or signing autographs for money would also be acceptable. SB 206 still forbids schools from paying athletes.

In September, a letter signed by NCAA President Mark Emmert and 21 other members of the organization's board of governors was sent to Newsom, calling the bill "unconstitutional" and a "scheme." The NCAA believes that the measure will remove fairness and equal treatment.

Carney Shegerian, the founder of Los Angeles-based employee rights law firm Shegerian & Associates, has weighed in on the suit. 

"We support the athletes rights to compensation, and can only hope that other schools follow suit," he said. 

About Shegerian & Associates:
Shegerian & Associates has won clients over $300 million in employment-based disputes and maintains a 98% success rate. We have offices in Los Angeles, San Diego, Riverside and New York. 

Media Contact:
Pace Public Relations
Kara Ryan
kryan@pacepublicrelations.com

Cision

View original content:http://www.prnewswire.com/news-releases/shegerian--associates-california-will-now-allow-college-athletes-to-profit-from-endorsement-deals-300931473.html