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Student athlete compensation

January 01, 1970

In college athletics in the United States, a student-athlete who participates in a varsity sport on any and all levels is eligible to profit from their name, image, and likeness (NIL). Historically, the National Association of Intercollegiate Athletics (NAIA) was the first association to permit pro-am, as the National Collegiate Athletic Association (NCAA) resisted efforts to compensate college athletes beyond the scholarship and stipend.[1] However, the Supreme Court's decision in NCAA v. Alston (2021) allows for non-scholarship earned income across every division.[2]

History edit

The NCAA has long maintained that student-athletes cannot be compensated in the name of "amateurism."[3] In 1953, the NCAA created the term "student-athlete" in response to the Colorado Supreme Court's ruling in University of Denver v. Nemeth that an injured football player was an "employee" of the University of Denver and therefore entitled to workers' compensation.[1] Despite further attempts by the NCAA to classify student-athlete compensation as a violation of the Commerce and Contracts Clauses of the U.S. Constitution, "amateurism" in college sports has begun to fade as the push for student-athlete compensation grows stronger.[1]

The latest movement in the college athlete compensation space focuses on payment for name, image, and likeness, a practice first adopted by the State of California in 2019.[1] Namely, in September, Governor Gavin Newsom signed Senate Bill 206, which generally allowed student-athletes in California to accept compensation for the use of their name, image, and likeness.[4] The "Fair Pay to Play Act" bill was authored by California state senators Nancy Skinner and Steven Bradford and advanced with testimony from former Stanford volleyball star and 2015 national freshman of the year Hayley Hodson and Oklahoma State University football star Russell Okung.[5][6][7][8] No federal statutes currently touch on this topic, and the only federal regulation permitting college students to accept compensation is 34 CFR § 675.16, which only relates to work-study programs.[9]

However, the Supreme Court's 2021 decision in NCAA v. Alston shed light on modern federal attitudes towards student-athlete compensation.[2] In this case, the Court struck down any potential limitations on education-related benefits that student-athletes may receive.[2] Most notably, the Court – and especially Justice Brett Kavanaugh – rejected the NCAA's "amateurism" argument as an overly broad and outdated defense for failing to allow its revenue-drivers (i.e., student-athletes) to receive compensation.[2] The NCAA contended that the Court should defer to its amateurism model because it is a joint venture along with its member schools, but the Court instead reasoned that deference was inappropriate since the NCAA has a monopoly in the relevant market.[2] The Court further rejected the NCAA's appeal that it was not a "commercial enterprise," noting the "highly profitable" and "professional" nature of certain college sports.[2]

Shortly after the Court's decision in Alston, the NCAA issued an interim name, image, and likeness policy which permits student-athletes to earn this compensation.[10] States have also followed suit by enacting similar laws.[1] For example, Illinois Public Law 102-0042 permits athletes to receive market-value compensation for the use of their name, image, and likeness.[11] Some scholars have noted the tax consequences that may arise from student-athlete compensation.[12]

Several startups like ATHLYT have begun to connect advertisers with their student-athlete members shortly after the NCAA enacted their interim NIL policies. Grambling University signed what is believed to be one of the first NIL deals in 2022.[13]

In July 2023, multiple bills were introduced by members of Congress to regulate NIL.[14][15][16]

High school athletes edit

Athletes still in high school began signing NIL deals in May 2022, beginning with Nike signing Harvard-Westlake School soccer players Alyssa Thompson and Gisele Thompson,[17] followed by NIL deals signed by basketball prospects Bronny James, Dajuan Wagner Jr., and JuJu Watkins in October 2022.[18] Some high-school athletics associations subsequently adjusted their rules to allow high-school athletes to sign NIL deals while retaining their athletic eligibility. For example, the Oregon School Activities Association approved student NIL deals on October 10, 2022,[19] leading to a local apparel company signing two Oregon Ducks basketball commits on October 21 in the state's first high-school NIL deals.[20] Other states allowed high-school NIL deals with restrictions, such as Missouri, which enacted a state law in July 2023 allowing high-school NIL deals only if athletes commit to a Missouri-based college.[21]

Life Center Academy basketball prospect Kiyomi McMiller signed Nike label Jordan Brand's first high-school NIL deal in February 2023,[22] and in July 2023 Lake Oswego High School senior Mia Brahe-Pedersen signed Nike's first high-school track-and-field NIL deal.[23]

Media involvement edit

Due to the increasing popularity of college sports because of television and media coverage, some players on college sports teams are receiving compensation from sources other than the NCAA.[24] For instance, CBS paid around $800 million for broadcasting rights to a three-week 2014 men's basketball tournament.[24] Because of the revenue and positive attention players bring to their colleges, there is a high demand to be fairly compensated.[24] However, the NCAA forbids players from accepting external forms of compensation, such as payment or improved grades.[24] Instead, the NCAA traditionally compensates players through athletic scholarships that cover the cost of tuition and other academic expenses.[24]

Collectives edit

The Internal Revenue Service defines collectives as organizations which are "structurally independent of a school, yet fund NIL opportunities for the school’s student-athletes." They can be tax-exempt or for profit entities which can either package business opportunities in a marketplace, or pool booster and supporter funds and deliver them to athletes.[25] Most Division I universities now have collectives which can provide funds for selected athletes or a full team.[26][27] However, there has been criticism that the use of collectives may circumvent Title IX which require equal opportunities between men and women in college sports.[28]

References edit

  1. ^ a b c d e Tepen, Luke (January 1, 2021). "Pay to Play: Looking Beyond Direct Compensation and Towards Paying College Athletes for Themselves". Washington University Journal of Law & Policy. 65 (1): 213–246. ISSN 1533-4686. from the original on October 8, 2021. Retrieved October 8, 2021.
  2. ^ a b c d e f "NCAA v. Alston" (PDF). U.S. Supreme Court. (PDF) from the original on October 1, 2021. Retrieved October 8, 2021.
  3. ^ Holden, John T.; Edelman, Marc; McCann, Michael (March 11, 2022). "A Short Treatise on College-Athlete Name, Image, and Likeness Rights: How America Regulates College Sports's New Economic Frontier". Georgia Law Review. Rochester, NY. SSRN 4055530. from the original on July 6, 2023. Retrieved August 1, 2022.
  4. ^ "Bill Text - SB-206 Collegiate athletics: student athlete compensation and representation". leginfo.legislature.ca.gov. from the original on October 8, 2021. Retrieved October 8, 2021.
  5. ^ Chuck Culpepper (June 30, 2021). "This state senator once caused McDonald's to change. No wonder she took on the NCAA". The Washington Post. Washington, D.C. ISSN 0190-8286. OCLC 1330888409. from the original on August 4, 2022. Retrieved February 28, 2022.
  6. ^ "Senators Bradford and Skinner Respond to NCAA's Announcement on Name, Image, and Likeness". April 30, 2020. from the original on February 28, 2022. Retrieved February 28, 2022.
  7. ^ Mello, Felicia (July 3, 2019). "Should college athletes profit from their prowess? NCAA says no, but California may say yes". Calmatters. from the original on February 28, 2022. Retrieved February 28, 2022.
  8. ^ "If college athletes could profit off their marketability, how much would they be worth? In some cases, millions". USA Today. from the original on February 28, 2022. Retrieved February 28, 2022.
  9. ^ "34 CFR § 675.16 - Payments to students". LII / Legal Information Institute. from the original on October 8, 2021. Retrieved October 8, 2021.
  10. ^ "Interim NIL Policy" (PDF). (PDF) from the original on September 26, 2021. Retrieved October 8, 2021.
  11. ^ "Illinois General Assembly - Full Text of Public Act 102-0042". www.ilga.gov. from the original on September 30, 2021. Retrieved October 8, 2021.
  12. ^ Kisska-Schulze, Kathryn; Epstein, Adam (September 1, 2020). "Changing The Face of College Sports One Tax Return At a Time". Oklahoma Law Review. 73 (3). Rochester, NY: 457–503. SSRN 3684573. from the original on July 6, 2023. Retrieved August 1, 2022.
  13. ^ Bailey, Analis (January 31, 2022). "Grambling State name, image and likeness deal would provide student-athletes with annual income". USA Today. from the original on November 5, 2022. Retrieved November 5, 2022.
  14. ^ "Senators offer latest bill aimed at college sports, NIL reform" ESPN. Retrieved 2023-07-26.
  15. ^ "Joe Manchin and Tommy Tuberville introduce bill on name, image and likeness rules for college sports" NBC News. Retrieved 2023-07-26.
  16. ^ "New NIL bill pushes Athlete's Rights, including group licensing" Sportico. Retrieved 2023-07-26.
  17. ^ VanHaaren, Tom (May 17, 2022). "Nike signs sister soccer players to company's first high school name, image and likeness deal". ESPN. Retrieved August 9, 2023.
  18. ^ "Bronny James, four others sign NIL deals with Nike". Fox Sports. October 10, 2022. Retrieved August 9, 2023.
  19. ^ Dieckhoff, Andy (October 10, 2022). "OSAA approves changes to NIL rules for high school student-athletes". Portland Tribune. Retrieved August 9, 2023.
  20. ^ Streng, Nik (October 21, 2022). "West Linn's Jackson Shelstad, Jesuit's Sofia Bell sign first Oregon high school NIL deal". The Oregonian. Retrieved August 9, 2023.
  21. ^ Bayless, Kacen (July 17, 2023). "New MO law allows high school athletes to cash in on image if they sign to in-state college". The Kansas City Star. Retrieved August 9, 2023.
  22. ^ "Top hoops prospect Kiyomi McMiller signs NIL deal with Jordan Brand". ESPN. February 22, 2023. Retrieved August 9, 2023.
  23. ^ Streng, Nik (July 3, 2023). "Lake Oswego's Mia Brahe-Pedersen makes history as first high school track and field athlete to sign NIL deal with Nike". The Oregonian. Retrieved August 9, 2023.
  24. ^ a b c d e Sanderson, Allen R.; Siegfried, John J. (February 1, 2015). "The Case for Paying College Athletes". Journal of Economic Perspectives. 29 (1): 115–138. doi:10.1257/jep.29.1.115. ISSN 0895-3309.
  25. ^ "Name, Image, and Likeness (NIL) Collectives". Internal Revenue Service.
  26. ^ "Inside the world of 'collectives' using name, image and likeness to pay college athletes, influence programs". CBSSports.com. January 26, 2022. Retrieved January 1, 2024.
  27. ^ Furlong, Josh. "Utes NIL collective expands leased vehicles offer to basketball, gymnastics athletes". www.ksl.com. KSL. Retrieved January 1, 2024.
  28. ^ "Colleges getting cozy with NIL collectives worries Title IX activists". Dallas News. September 18, 2023. Retrieved January 1, 2024.

Further reading edit

  • Schoenfeld, Bruce (January 24, 2023). "Student. Athlete. Mogul? – How Sponsorship Deals are Transforming College Sports". The New York Times. ISSN 0362-4331. Retrieved January 25, 2023.

January 01, 1970
student, athlete, compensation, college, athletics, united, states, student, athlete, participates, varsity, sport, levels, eligible, profit, from, their, name, image, likeness, historically, national, association, intercollegiate, athletics, naia, first, asso. In college athletics in the United States a student athlete who participates in a varsity sport on any and all levels is eligible to profit from their name image and likeness NIL Historically the National Association of Intercollegiate Athletics NAIA was the first association to permit pro am as the National Collegiate Athletic Association NCAA resisted efforts to compensate college athletes beyond the scholarship and stipend 1 However the Supreme Court s decision in NCAA v Alston 2021 allows for non scholarship earned income across every division 2 Contents 1 History 1 1 High school athletes 1 2 Media involvement 1 3 Collectives 2 References 3 Further readingHistory editThe NCAA has long maintained that student athletes cannot be compensated in the name of amateurism 3 In 1953 the NCAA created the term student athlete in response to the Colorado Supreme Court s ruling in University of Denver v Nemeth that an injured football player was an employee of the University of Denver and therefore entitled to workers compensation 1 Despite further attempts by the NCAA to classify student athlete compensation as a violation of the Commerce and Contracts Clauses of the U S Constitution amateurism in college sports has begun to fade as the push for student athlete compensation grows stronger 1 The latest movement in the college athlete compensation space focuses on payment for name image and likeness a practice first adopted by the State of California in 2019 1 Namely in September Governor Gavin Newsom signed Senate Bill 206 which generally allowed student athletes in California to accept compensation for the use of their name image and likeness 4 The Fair Pay to Play Act bill was authored by California state senators Nancy Skinner and Steven Bradford and advanced with testimony from former Stanford volleyball star and 2015 national freshman of the year Hayley Hodson and Oklahoma State University football star Russell Okung 5 6 7 8 No federal statutes currently touch on this topic and the only federal regulation permitting college students to accept compensation is 34 CFR 675 16 which only relates to work study programs 9 However the Supreme Court s 2021 decision in NCAA v Alston shed light on modern federal attitudes towards student athlete compensation 2 In this case the Court struck down any potential limitations on education related benefits that student athletes may receive 2 Most notably the Court and especially Justice Brett Kavanaugh rejected the NCAA s amateurism argument as an overly broad and outdated defense for failing to allow its revenue drivers i e student athletes to receive compensation 2 The NCAA contended that the Court should defer to its amateurism model because it is a joint venture along with its member schools but the Court instead reasoned that deference was inappropriate since the NCAA has a monopoly in the relevant market 2 The Court further rejected the NCAA s appeal that it was not a commercial enterprise noting the highly profitable and professional nature of certain college sports 2 Shortly after the Court s decision in Alston the NCAA issued an interim name image and likeness policy which permits student athletes to earn this compensation 10 States have also followed suit by enacting similar laws 1 For example Illinois Public Law 102 0042 permits athletes to receive market value compensation for the use of their name image and likeness 11 Some scholars have noted the tax consequences that may arise from student athlete compensation 12 Several startups like ATHLYT have begun to connect advertisers with their student athlete members shortly after the NCAA enacted their interim NIL policies Grambling University signed what is believed to be one of the first NIL deals in 2022 13 In July 2023 multiple bills were introduced by members of Congress to regulate NIL 14 15 16 High school athletes edit Athletes still in high school began signing NIL deals in May 2022 beginning with Nike signing Harvard Westlake School soccer players Alyssa Thompson and Gisele Thompson 17 followed by NIL deals signed by basketball prospects Bronny James Dajuan Wagner Jr and JuJu Watkins in October 2022 18 Some high school athletics associations subsequently adjusted their rules to allow high school athletes to sign NIL deals while retaining their athletic eligibility For example the Oregon School Activities Association approved student NIL deals on October 10 2022 19 leading to a local apparel company signing two Oregon Ducks basketball commits on October 21 in the state s first high school NIL deals 20 Other states allowed high school NIL deals with restrictions such as Missouri which enacted a state law in July 2023 allowing high school NIL deals only if athletes commit to a Missouri based college 21 Life Center Academy basketball prospect Kiyomi McMiller signed Nike label Jordan Brand s first high school NIL deal in February 2023 22 and in July 2023 Lake Oswego High School senior Mia Brahe Pedersen signed Nike s first high school track and field NIL deal 23 Media involvement edit Due to the increasing popularity of college sports because of television and media coverage some players on college sports teams are receiving compensation from sources other than the NCAA 24 For instance CBS paid around 800 million for broadcasting rights to a three week 2014 men s basketball tournament 24 Because of the revenue and positive attention players bring to their colleges there is a high demand to be fairly compensated 24 However the NCAA forbids players from accepting external forms of compensation such as payment or improved grades 24 Instead the NCAA traditionally compensates players through athletic scholarships that cover the cost of tuition and other academic expenses 24 Collectives edit The Internal Revenue Service defines collectives as organizations which are structurally independent of a school yet fund NIL opportunities for the school s student athletes They can be tax exempt or for profit entities which can either package business opportunities in a marketplace or pool booster and supporter funds and deliver them to athletes 25 Most Division I universities now have collectives which can provide funds for selected athletes or a full team 26 27 However there has been criticism that the use of collectives may circumvent Title IX which require equal opportunities between men and women in college sports 28 References edit a b c d e Tepen Luke January 1 2021 Pay to Play Looking Beyond Direct Compensation and Towards Paying College Athletes for Themselves Washington University Journal of Law amp Policy 65 1 213 246 ISSN 1533 4686 Archived from the original on October 8 2021 Retrieved October 8 2021 a b c d e f NCAA v Alston PDF U S Supreme Court Archived PDF from the original on October 1 2021 Retrieved October 8 2021 Holden John T Edelman Marc McCann Michael March 11 2022 A Short Treatise on College Athlete Name Image and Likeness Rights How America Regulates College Sports s New Economic Frontier Georgia Law Review Rochester NY SSRN 4055530 Archived from the original on July 6 2023 Retrieved August 1 2022 Bill Text SB 206 Collegiate athletics student athlete compensation and representation leginfo legislature ca gov Archived from the original on October 8 2021 Retrieved October 8 2021 Chuck Culpepper June 30 2021 This state senator once caused McDonald s to change No wonder she took on the NCAA The Washington Post Washington D C ISSN 0190 8286 OCLC 1330888409 Archived from the original on August 4 2022 Retrieved February 28 2022 Senators Bradford and Skinner Respond to NCAA s Announcement on Name Image and Likeness April 30 2020 Archived from the original on February 28 2022 Retrieved February 28 2022 Mello Felicia July 3 2019 Should college athletes profit from their prowess NCAA says no but California may say yes Calmatters Archived from the original on February 28 2022 Retrieved February 28 2022 If college athletes could profit off their marketability how much would they be worth In some cases millions USA Today Archived from the original on February 28 2022 Retrieved February 28 2022 34 CFR 675 16 Payments to students LII Legal Information Institute Archived from the original on October 8 2021 Retrieved October 8 2021 Interim NIL Policy PDF Archived PDF from the original on September 26 2021 Retrieved October 8 2021 Illinois General Assembly Full Text of Public Act 102 0042 www ilga gov Archived from the original on September 30 2021 Retrieved October 8 2021 Kisska Schulze Kathryn Epstein Adam September 1 2020 Changing The Face of College Sports One Tax Return At a Time Oklahoma Law Review 73 3 Rochester NY 457 503 SSRN 3684573 Archived from the original on July 6 2023 Retrieved August 1 2022 Bailey Analis January 31 2022 Grambling State name image and likeness deal would provide student athletes with annual income USA Today Archived from the original on November 5 2022 Retrieved November 5 2022 Senators offer latest bill aimed at college sports NIL reform ESPN Retrieved 2023 07 26 Joe Manchin and Tommy Tuberville introduce bill on name image and likeness rules for college sports NBC News Retrieved 2023 07 26 New NIL bill pushes Athlete s Rights including group licensing Sportico Retrieved 2023 07 26 VanHaaren Tom May 17 2022 Nike signs sister soccer players to company s first high school name image and likeness deal ESPN Retrieved August 9 2023 Bronny James four others sign NIL deals with Nike Fox Sports October 10 2022 Retrieved August 9 2023 Dieckhoff Andy October 10 2022 OSAA approves changes to NIL rules for high school student athletes Portland Tribune Retrieved August 9 2023 Streng Nik October 21 2022 West Linn s Jackson Shelstad Jesuit s Sofia Bell sign first Oregon high school NIL deal The Oregonian Retrieved August 9 2023 Bayless Kacen July 17 2023 New MO law allows high school athletes to cash in on image if they sign to in state college The Kansas City Star Retrieved August 9 2023 Top hoops prospect Kiyomi McMiller signs NIL deal with Jordan Brand ESPN February 22 2023 Retrieved August 9 2023 Streng Nik July 3 2023 Lake Oswego s Mia Brahe Pedersen makes history as first high school track and field athlete to sign NIL deal with Nike The Oregonian Retrieved August 9 2023 a b c d e Sanderson Allen R Siegfried John J February 1 2015 The Case for Paying College Athletes Journal of Economic Perspectives 29 1 115 138 doi 10 1257 jep 29 1 115 ISSN 0895 3309 Name Image and Likeness NIL Collectives Internal Revenue Service Inside the world of collectives using name image and likeness to pay college athletes influence programs CBSSports com January 26 2022 Retrieved January 1 2024 Furlong Josh Utes NIL collective expands leased vehicles offer to basketball gymnastics athletes www ksl com KSL Retrieved January 1 2024 Colleges getting cozy with NIL collectives worries Title IX activists Dallas News September 18 2023 Retrieved January 1 2024 Further reading editSchoenfeld Bruce January 24 2023 Student Athlete Mogul How Sponsorship Deals are Transforming College Sports The New York Times ISSN 0362 4331 Retrieved January 25 2023 Retrieved from https en wikipedia org w index php title Student athlete compensation amp oldid 1223415731, wikipedia, wiki, book, books, library,

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