California legalizes college athlete endorsements

[Mr Janny]

Don't have time to read through the entire thread, but isn't this as easy as the NCAA telling schools in California that the same rules that currently apply will still apply related to paying players and if they don't abide by them the same sanctions will be levied? It seems kind of like marijuana use and pro sports in states where it is legal for recreation. Those pro sports leagues can still tell their players they can't use marijuana or they'll face disciplinary action.

Otherwise, the NCAA could just tell the California schools to take a hike and they wouldn't be part of the structure that currently exists. The California schools would then have to decide whether it's worth it to form their own league and pay their players, or abide by the NCAA rules and stay in the current structure (TV money, postseason tournaments and bowls, etc.).

The NCAA sure could try that, and they've rattled their sabres to indicate that they might. But I don't think it's likely that they actually would ban those California schools.
For one, it would be inviting lawsuits, and they'd have to argue why the rules of a nonprofit sports governing body should supercede state law. That's not a slam dunk for them at all. Their recent track record in court isn't great. They know there's a chance a judge would rule against them and force their hand. And I think they want to avoid that at all costs. What's much more likely is that the NCAA adjusts their rules to align with this law, or at least come close to it. That would hopefully keep them out of court, and allow them to control the message. Additionally, California isn't the only state that's considering laws like this. They're just the first to pass one. By the time this law takes effect, there could be half a dozen states with similar laws. This has proven to be a pretty bipartisan issue. States like Florida, South Carolina, New York, and others. The writing is on the wall, and the NCAA knows it. It's just a matter of time before this is allowed everywhere.

 

[2forISU]

If someone is getting paid, do they get to keep their scholarship or would the student/athlete pay for it out of their pocket? I would assume you would have to pick between the scholarship or to make money off your name.

All I can think of is that the lawyers are going to get paid over this whole battle.

 

[Mr Janny]

If someone is getting paid, do they get to keep their scholarship or would the student/athlete pay for it out of their pocket? I would assume you would have to pick between the scholarship or to make money off your name.

All I can think of is that the lawyers are going to get paid over this whole battle.

Why would you assume that? No other scholarship student has to pick. Why would an athlete have to?

 

[CapnCy]

The logistics of it all are fascinating to me (assuming student athletes were able to make money from their likeness). Some examples/thoughts:

-A guy like Georges when he was here....his weekends could be spent going to random places for autograph sessions, short commercials, etc. Would he do that instead of the other things (volunteering with teammates at events, i.e. fan fest types of things), could a star like him leverage to help his buddies "i'll do it, if you also let our walk on player that's my pal get some money"
-A site like this could pay players to be on podcasts, sell products, etc. Could that "strain" relationships with ISU?
-Think of the natural conflicts of brands....i.e. Cyclone Sports Properties has a deal with Case IH, but Brock Purdy is seen on commercials for their competitor all the time, etc.
-Now coaches/athletic dept somewhat control the time of athletes for their own good (practice, academics, academic support)..how do they address when these types of outside interests impact the departments interests?
-Think of the weird recruiting back end stuff that could happen (which some have discussed) "After much consideration....I appreciate both School A and School B's coaches, system, and attitudes....but, I'll be a Cyclone and, as an ag major, am excited to roll out the new line of Sukup Moisture Defense Storage....stopping moisture like I'll stop big 12 pass rushers!"

 

[CapnCy]

I also would think that this could open up some type of local "agent" that could help connect athletes to opportunities for their likeness (not sure if that would be allowed)....probably managed by Cyclone Sports Properties, lol.

Also, think of some of the potential hiccups...you get a national top recruit...that doesn't know what they are doing and could drastically undersell their worth or could get into some weird situations not knowing how to manage a business/contracts.

"hi, I'm Donnie Jennert....visit my website for hot pictures and videos as i hunt central iowa Cougars!"

"No one likes their sink or toilets backing up...take if from me, your favorite back up, Jerome Tiller, no one knows back ups like RotoRooter"

 

[isufbcurt]

My initial thoughts, the IRS can fix a lot of this.

1. Does the player now have to pay income taxes on their scholarship? They are no longer an amateur when they take endorsement dollars.
2. They are all going to be independent contractors - what kind of tax advice are they getting at 18-20 years of age? Not a simple return.
3. Will the schools lose their "non-profit" status? That would put an end to it.

My advice would be to build into the endorsement contract that they also pay taxes associated with the endorsement (or hold back some money to cover it).

 

[GrappleCy]

I still think everyone is missing the real impact of this by thinking about what this means for actual endorsement deals vs. donors using it to legally pay players to come to their preferred school.

 

[UNIGuy4Cy]

I still think everyone is missing the real impact of this by thinking about what this means for actual endorsement deals vs. donors using it to legally pay players to come to their preferred school.

Exactly this is the end of college athletics as we know it. It hasn't been exactly clean, but it has been at least policed over time. How do you keep John Doe the oil guru from paying a college athlete $3M to not come to Texas and just use the dollars to pay him through a commercial?

 

[Mr Janny]

Exactly this is the end of college athletics as we know it. It hasn't been exactly clean, but it has been at least policed over time. How do you keep John Doe the oil guru from paying a college athlete $3M to not come to Texas and just use the dollars to pay him through a commercial?

Yes, I believe that was the specific intent of the law. The entire idea of college sports needs to hit the reset button. The fact that you can say "it has been policed" with a straight face is proof of this.

 

[Clonefan32]

I've changed my tune, I'm now all for athletes getting endorsement deals. Why you ask, because it's going to be hilarious watching fans complain about how bad ISU is because we can't out publicly bid other teams for talent.

We can't out bid other teams for talent now. I do not think this will hurt Iowa State at all.

 

[3TrueFans]

Exactly this is the end of college athletics as we know it. It hasn't been exactly clean, but it has been at least policed over time. How do you keep John Doe the oil guru from paying a college athlete $3M to not come to Texas and just use the dollars to pay him through a commercial?

I don't know if you meant the bolded portion to be hilarious but it definitely is.

Maybe changing college athletics is for the best though? Maybe turning college athletics into a billion dollar industry that acts as de facto minor leagues for pro sports leagues isn't great and something else would be better.

 

[UNIGuy4Cy]

Yes, I believe that was the specific intent of the law. The entire idea of college sports needs to hit the reset button. The fact that you can say "it has been policed" with a straight face is proof of this.

ISU will never compete in a world such as this. Iowa won't either for that matter. As for policing this, we at least had some satisfaction knowing the NCAA was maybe doing something. This is going to spiral out of control now.

 

[Clonefan32]

What is the percentage of D1 athletes who could externally make money off of their name/image.... Less than 1%?

This is where I think the a school like Iowa State actually benefits off of a rule like this. College athletes in Iowa are some of the more recognizable people in our state. We don't have pro teams, celebrities, etc. I think you could make the claim that Purdy, Haliburton, Stanley, Epeneza, etc. are some of the most marketable people we have in our state. I think that is somewhat unique to our locale with no professional teams.

 

[Mr Janny]

ISU will never compete in a world such as this. Iowa won't either for that matter. As for policing this, we at least had some satisfaction knowing the NCAA was maybe doing something. This is going to spiral out of control now.

Might want to invest in Dramamine then, because this is happening. The cat is not going back in the bag.

 

[Clonefan32]

I just love that people are naive enough to think that "big schools buying the best players" is going to be some new revelation from this law. Please. The big schools have been buying the best players for the last 20 years. This at least puts it in the open.

 

[Dr.bannedman]

ISU will never compete in a world such as this. Iowa won't either for that matter. As for policing this, we at least had some satisfaction knowing the NCAA was maybe doing something. This is going to spiral out of control now.

yes because they compete so well now. captial one bowls and alamo bowls

 

[CtownCyclone]

This is where I think the a school like Iowa State actually benefits off of a rule like this. College athletes in Iowa are some of the more recognizable people in our state. We don't have pro teams, celebrities, etc. I think you could make the claim that Purdy, Haliburton, Stanley, Epeneza, etc. are some of the most marketable people we have in our state. I think that is somewhat unique to our locale with no professional teams.

Purdy was also recruited by Alabama and aTm. Both Tide and Aggy fans are pretty rabid and have some wealthy supporters that would be more than happy to have given Brock a nice boost to go to their school.

I would say under this law, we wouldn't get Purdy to come to Ames. He's the kind of kid who doesn't seem like the type to take an under-the-table payment. If it's all on the up and up, I don't think he comes to Ames.

Just my $0.02.

 

[Clonefan32]

Also, I wouldn't underestimate Iowa State's ability to generate a strong donor base if that's what this comes down to. Just look what JP has been able to fund over the course of the last 10 years, and what just came out two weeks ago about future plans. Iowa State fans will put up the money if need be. Now maybe not on-par with some of the blue-bloods, but I also don't think we will be in a position to be left with everyone's scraps.

 

[Clonefan32]

Purdy was also recruited by Alabama and aTm. Both Tide and Aggy fans are pretty rabid and have some wealthy supporters that would be more than happy to have given Brock a nice boost to go to their school.

I would say under this law, we wouldn't get Purdy to come to Ames. He's the kind of kid who doesn't seem like the type to take an under-the-table payment. If it's all on the up and up, I don't think he comes to Ames.

Just my $0.02.

Those schools operate in the world of 4-5 star recruits. I struggle to see their fan-base getting too riled up over someone like Brock out of high school. Plus, if you want to talk about profiting off your N-I-L, do you want to be a 3-4th stringer, or come in and compete for a starting job? Which allows you to better profit of your N-I-L?

I would actually say that under this new law our chances at a Purdy increase because we can offer more above-the-table in terms of notoriety than Alabama or AnM.

 

[3TrueFans]

Purdy was also recruited by Alabama and aTm. Both Tide and Aggy fans are pretty rabid and have some wealthy supporters that would be more than happy to have given Brock a nice boost to go to their school.

I would say under this law, we wouldn't get Purdy to come to Ames. He's the kind of kid who doesn't seem like the type to take an under-the-table payment. If it's all on the up and up, I don't think he comes to Ames.

Just my $0.02.

Alabama already has everything better than us, better facilities, more exposure, more success, better track record for players going pro, but Brock still came here for a reason. And there would be plenty of opportunities for someone like Brock to make outside income in Ames if it were legal. You don't think some local businesses would be interested in putting him in a commercial, or sitting him at a table in their store to sign autographs?