24 May 2019

CA Senate Green lights "The Fair Pay to Play Act."

Michael A. Rueda
Partner | Head of US Sports and Entertainment | US

On May 22, 2019, the California Senate approved Senate Bill 206, more commonly known as “The Fair Pay to Play Act.” Backed with bipartisan support, the Fair Pay to Play act aims to address unfair rules that exploit college athletes and allow the NCAA, universities, TV Networks and corporate sponsors to earn huge sums, without regard to the student athletes generating the profits. Under The Fair Pay to Play Act, California college athletes would be able to earn income from endorsements or sponsorships while enrolled as student-athletes. To prevent running afoul of the NCAA’s amateurism rules, The Fair Pay to Play Act would treat student-athletes like Olympians and give them an opportunity to “earn income from their talent” while retaining their amateur status. The NCAA’s amateurism rules have been so hotly contested in recent years that California universities including Cal, USC and Stanford will all oppose the bill, out of an abundance of caution in maintaining NCAA compliance. The Fair Pay to Play Act will now go to the state Assembly for consideration.

Michael A. Rueda Partner | Head of US Sports and Entertainment | New York

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