"Wait, they weren't supposed to be paid?" - John Calipari

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You can’t spell “NCAA” without CA...

California Governor Gavin Newsom signed a bill yesterday allowing collegiate athletes to get paid for endorsement deals, including use of their name, image, and likeness. The Fair Pay to Play Act gained additional steam after LeBron James got behind the cause. Ironically, Lebron didn’t go to college.

In support of his decision, Governor Newsom pointed out that colleges and universities make billions of dollars from student-athletes’ sacrifices but block them from earning a single dollar, calling that structure a “bankrupt model."

“But athletes get free dinner!” - a guy who got cut from JV football

This is a big win for athletes who have raised concerns about the current system. The most outspoken proponents of "play to play" were the Northwestern University football team which attempted to form a union of players back in 2015. That attempt was rejected by the National Labor Relations Board. F*cking nerds. 

Keyword: national

The NCAA’s biggest bone to pick with California implementing the law is that it will create a disadvantage for states not named California. The NCAA fears that straight cash homie will make Cali schools more attractive to prospective students.

In a statement, the Collegiate Association noted that it would likely prevent California schools from competing if the bill should pass. Sounds like Vince McMahon might have a new project on his hands … the CCAA!

The bottom line...

There are literally billions of dollars to be made (or lost) depending on how the Fair Pay to Play Act shakes out. It's unclear how other states will react but we do know that the NCAA is mad as hell. In the interim, college coaches and universities will continue to make it rain.

California governor signs law allowing college athletes to get paid, potentially upending amateur sports [CNBC]

IN OTHER NEWS

- Forever 21 founders win "parents of the year" award [Bloomberg]

- Facebook will let the Onion deliver fake news [WSJ]

- Apple makes it to the 4-comma club again [MarketWatch]

Related

By US Department of Labor (Working_Families_MA009) [Public domain], via Wikimedia Commons

Opening Bell 5.10.19

Wait, so you're telling me there is ANOTHER one of these Facebook billionaire dweebs floating around out there talking about smoked meats?