Almost agree with you 100%, BUT, even though I also agree athletes deserve some compensation, I do believe this should have been rolled out with a set of well thought out rules to prevent simple bidding wars where their is extraordinary benefit to those with rich donor bases. Maybe I am bias because I know which side of the dense ISU resides.
29 states now have laws allowing college athletes to earn NIL income. These laws generally all contain language that prevents enforcing any kind of limit on how much can be earned. Some of the laws have "limited to commensurate market value" clauses.
The Cali law is linked below. It basically says no school can restrict NIL income, and no governing organization with authority over college athletics can restrict participation of an athlete earning NIL income, or a school that allows its athletes to earn NIL income. The other state laws are similar.
Explore the California NIL Law for NCAA student athletes including tax implications and FAQs from the industry leading compliance platform, Spry
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As such, any set of rules to govern NIL put forth by the NCAA that limited the amount of money earned would likely violate those state rules. The law basically ensures that "bidding wars" are going to happen.
In the present situation, the Supreme Court made a ruling, not directly about NIL, but hinting that NIL would/should be allowed. This triggered states to make NIL laws, and the NCAA to allow NIL, but the NCAA was rendered unable to regulate NIL because of laws in a majority of the states.
Had the NCAA gone first, and put forth a system for regulating NIL, I don't think it would have mattered, and we end up in the same place. The states would essentially pass the same laws they have now, to give the schools in their states an advantage. That is pretty much right in Sec 5 of the California law. Also, apparently, NIL is necessary for the immediate preservation of the public peace, health, or safety...
This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to ensure that California postsecondary educational institutions and college athletes are not placed at a disadvantage to those in other states where name, image, and likeness laws will go into effect this year, and in order to ensure that California college athletes, including low-income student athletes and those with children and dependents, can adequately provide for themselves and their families, it is necessary that this act take effect immediately.