Michigan governor signs bill allowing college athletes to earn money through sponsorships, ads
allowed to earn sponsorship or advertising money without risking their eligibility.
Gov. Gretchen Whitmer signed bills Wednesday that would allow athletes to be compensated for their name, image or likenesses. The bills also repeal criminal penalties associated with college athletes hiring agents or receiving gifts.
Although the bulk of the measures do not take affect until 2023, they are part of a national movement to allow college athletes to get paid without repercussions.
“For years we have all enjoyed the incredible talent of young athletes across the state. This legislation will change the lives of young men and women for years to come,” Whitmer said in a news release.
HOW IT PASSED IN SENATE:Bills allow college athletes to earn money through endorsements
“I am hopeful that the NCAA will set a national standard so that all players across the country are afforded the same opportunities. As always stay safe and go green!”
At least five other states have passed similar legislation: California, Florida, Colorado, Nebraska and New Jersey.
Right now, college athletes across the country are largely banned from earning money or other compensation apart from scholarships when they agree to play a varsity sport. At the same time, colleges, coaches, the NCAA, conferences and others earn billions every year through college football, basketball and other sports. This arrangement has sparked considerable debate and lawsuits for years.
In November, the NCAA unveiled details of proposed rules changes that would allow athletes to be compensated for their names, images and likenesses. The proposals are set for final approval by the NCAA Division I Council on Jan. 11 and the Division I Board of Directors on Jan. 14, as reported by USA TODAY.
However, the NCAA and athletic conferences are still battling with athletes in court. Earlier this year, the U.S. Supreme Court agreed to hear a case that could also drastically change compensation rules for collegiate athletes.
also recently introduced federal legislation that would allow broadly expand the ability of college athletes around the country to be compensated.
The Michigan legislation outlines parameters for how athletes could enter into specific endorsement or sponsorship deals. If these athletes follow the rules, their university or college, athletic conference and the NCAA could not revoke a scholarship or otherwise punish the student athlete for signing a deal, under the new law.
The law bans students from signing contracts that would conflict with current university deals. For example, if a university already had a contract with Nike for cleats worn during a game, an athlete attending that school could not have a deal with Reebok or any other similar company that required the athlete to wear non-Nike cleats during a game.
HOW THE BILL CAME ABOUT:Democratic senators introduce ‘College Athletes Bill of Rights’ that could reshape NCAA
