THE WALL STREETJOURNAL. Thursday, March 12, 2020|R 3
Students are closer than ever to being allowed to
make moneyfrom their sport, spellingbigchanges forschools, players andfans.ByLaineHiggins
wayfor athletes to make moneyfrom
third parties but not to be compen-
sated directlybyuniversities, confer-
encesor the NCAA. Since the law
passed, politicians have proposed sim-
ilar billsin34states.
California’sS.B.2 06 doesn’t take
effect until Jan. 1, 2023, but changes
might come sooner. Thereis broad
bipartisan supportinCongressfor
payingcollege athletes. Draftlegisla-
tionin several states callsforath-
letes to be able to profitfrom their
NIL as soon as July.NCAAChiefOp-
eratingOfficer Donald Remy said
that thegroup would be ready to
vote on new policies that are “consis-
tent with the American system of
college sports” by January 2021.
Should the NCAA makegood on
that assurance, the moneymakingop-
portunitiesfor college athletes will
balloon. Theycould earn compensa-
tionfor attendinga booster’s daugh-
ter’s birthday party,filmingcommer-
cials or postingsponsored content on
social media. When choosingschools,
athletes might consider how much
moneyfans and alumni have reserved
for the starting point guard at Duke or
running back at Alabama.
There could be more pressure to le-
galize agents at the college level.
(These relationships alreadysome-
times happen under the table.)This
could give students more bargaining
power with schools and higher public
profiles; agents could pressure
coaches over how much playing time
or campus exposure their clients get.
Dan Everett, a South Carolina-
based sports agent, believes universi-
ties and athletic conferences will
eventually hire agents to advise their
athleteson the valueof deals.
Such marketing opportunities
won’t be limited toathletes whocom-
pete in revenue-generating sports. Fe-
male athletes and those in Olympicsports might stand togain the most.
Consider Lilly King, who won two
gold medals at the 2016 Rio Olympics
after herfreshmanyear at Indiana
University. “I lost a lot ofmoneydue
to thefact that I basically...decided to
stay there andget my education and
also swimfor my college team,” says
Ms. King.After her sophomore year,
she turned down “at least$ 100 ,000”
in bonuses awardedfor settingworld
recordsfrom FINA, swimming’sgov-
erningbody, to maintain her NCAA el-
igibility, she says.
Ms. King’s experienceis common
amongwomen athletes, who often
see their performances peak atyoun-
ger ages than men and lack the same
professional exposure. Collegesoft-
ball players might never
compete on a bigger stage
than the College World Se-
riesonESPN.
“People are under-market-
ingthe star performingabil-
ity offemale athletes,ignor-
ingthefact that there will be
starfemale athletes whowill
make decent money, and
their valueishighest while
stillin college,”saysAndy
Schwarz,a labor economist
whohas consultedincases
challengingNCAA rules.
How and when these
changes take root, however,
depends on whogetstowrite
therules.
If NIL reform proceeds
down the current path andis
legislatedbystategovern-
ments, college sportsfacea
fracturedfuture.Abillin
Michigan would allow ath-
letes there to make moneyas
soon as this summer,but there’s no
similar legislation in Ohio. What
would “The Game” between Michigan
and Ohio State look like if onlythe
Wolverines could profit? Perhaps a
fearsome, uber-athletic Michigan
squad filled with players earning tens
of thousands of dollars in sponsor-
ships could finallyerase the Buck-
eyes’ recent dominance in the rivalry.
The federal government could void
these state-by-state inconsistencies
should it pass a version of California’s
S.B. 206, a scenario experts sayis
likely. Rep. Mark Walker(R., N.C.)has
introduced draft legislation in the
U.S. House of Representatives, and
Sen. Marco Rubio(R., Fla.)plans to
introduce a Senate version immi-
nently. The White House has also
identified fairness in college sports as
a topic of potential action.Itis possiblefederal legislation
would take a more expansive tack.
LawmakersincludingSen. Chris Mur-
phy(D., Conn.) and Sen. Mitt Romney
(R., Utah)have pushed for universities
to compensate athletes directly.
TheNCAAdoesn’t want states to
take the lead on NIL reform,asit
could create a patchwork oflaws. Ifa
state lets athletes profitofftheirNIL
before 2021,when the NCAA has
promised to have revised bylaws,its
universities wouldn’t be able tocom-
petein NCAA championships.
The logjam created by conflicting
state laws and championship bans
could prompt the most dominant and
best endowed programs toformarival
organization. It could contain the 6 5
schoolsin the Power Five
athleticconferences, poten-
tiallyguttingthe NCAA’s 353-
member DivisionIofits big-
gest brand-name programs.
Dr. Josephine Potuto, a
UniversityofNebraska law
professor andfacultyathlet-
ics representative to the
NCAA, says secession would
likelyfail unless executed en
masse. “That’s a bigdeter-
rent,” she says.
The athletes could also
loosen the NCAA’s strangle-
hold on college athletics by
optingto play overseas orin
upstart leagues. More bas-
ketball players mightfollow
LaMelo Ball, a projected
2020 NBAfirst-round draft
pick whogaveupNCAAeli-
gibility by playingforaLith-
uanian pro team at age15.
Athletes might stay state-
side and earn six-figure sal-
aries with the Professional Collegiate
League, an eight-team independent
basketball league that starts in June
2 021, co-founded byMr. Schwarz, the
economist.
The upshot of all this activityis
that money in college athletics could
flow in new directions. Insteadof
businesses and boosters funding
gleaming athletic facilities and mil-
lion-dollar coaching salaries, they can
give directly to athletes. The NCAA
says such a system would give schools
with the richest donors an unfair re-
cruiting advantage. It’s much easier to
entice a recruit with a $10,000 check
than a first-class weight room.
“You’ll see coaches’ pay start to go
down over time,you’ll see locker
rooms become less fancyover time
andyou’ll see the offers to athletes
grow,”saysMr.Schwarz.W
hatit means tobe a
college athlete could
changeradically ina
matter ofyears,ifnot
months. It all depends
on the resolutionofthe multibillion-
dollar debateover whether athletesin
college deserve to make money—and
exactlyhow thatis allowed to happen.
Today’s college athletes are subject
toawebofNational Collegiate Ath-
letic Associationbylaws that prohibit
themfrom acceptingcompensation.
Tomaintain their “amateur” status,
theycan receivefinancial aid above
basic scholarships up to thefederally
definedfull cost ofattendance, plusa
smatteringofbenefits—an arrange-
ment that hasgenerated publicfrus-
tration, legal challenges and back-
and-forth with the NCAAforyears.
Now, however, actioninstatelegis-
latures, Congress,anNCAAworking
group and afederal appeals court
couldforce lastingand unpredictable
transformation across college sports.
Imagine afuture where some schools
pay athletes and some don’t, tipping
the scales in longstanding rivalries.
Where alumni give directly to stu-
dents, rather than funding deluxe ath-
letic facilities. Where the most power-
ful teams leave the NCAA and form
competing organizations.
Shifts are already beginning to take
shape. The Ninth U.S. Circuit Court of
Appeals heard arguments recently
that student athletes should receive
performance-based bonuses, possibly
tied to academics. A ruling could
come as soon as this summer.
More dramatic, California Gov.
Gavin Newsom signed the bipartisan
“Fair Payto PlayAct,” or S.B. 206,
into law last September, granting col-
lege athletes the ability to sell the
rights to their name, image and like-
ness(NIL)without having to forgo
their NCAA eligibility. This clears theILLUSTRATIONS BY: ROBERT CARTER (TOP);KYLE HILTONAHEAD OF THE GAME
TheNext
BigSport
(Maybe)
These five formsof
athletic competition
are relativelyniche,
but their profiles are
growing —byDanWeilBreaking
Breakdancing began on the streets ofNew
YorkCityinthe 1970s andthen spread
nationwide. Now it mightbeheaded
to theOlympics.
In June, the InternationalOlym-
pic Committee gave preliminary
approvaltobringingbreakdancing
tothe 2024 games in Paris. The
IOC will make itsfinal determina-
tion in December.
In competitivebreakdancing,
known asbreaking,dancers per-
formone-minute routines ina
1 2-by-12-foot space. Judges rate
dancers on creativity, technique,variety, musicality andpersonality.
Breaking includes moves suchas theheadspin,
inwhichacompetitorbalances onherheadwhile
rotating her torso, often with hands offthe ground.
U.S. breaking officials say participation is grow-
ing40%ayear.Growthisfastest among children
under 13, says Antonio Castillo, chair ofUSA
Breakin, a nonprofit helping to promote the sport.
“It’s accessible,” he says.“You don’t need any
equipment asidefrom afloor. Some competitors
don’tevenwearshoes.”
Routines areperformed to hip-hop, and DJs
and graffiti are part ofthe show.
“It’s inclusive to people ofall backgrounds, race
and religion,” Mr. Castillo says.“It’s a big part of
Americanculture.” Continues on page R 6“You’ll
see
coaches’
paystart
togo
down
over
time...and
you’llsee
the
offers to
athletes
grow.”
—AndySchwarz,
labor economist
and co-founderof
the Professional
Collegiate LeagueWHEN COLLEGE
ATHLETES
CASH IN
THE FUTURE OF EVERYTHING |SPORTS
34
The number
ofstates
thathave
proposed
lawssimilar
to
California’s2023
Theyear a
California
law allows
college
athletes to
sellthe
rights to
their name,
imageand
likeness8
Thenumber
ofteams
in the
independent
Professional
Collegiate
League353
The number
ofprograms
in the
NCAA’s
DivisionI