Paying College Athletes: Part 1
To listen to this podcast episode, click on the logo below. Seems like the push to pay college players is gathering momentum. Oddly, the push seems to be coming from state governments. Yesterday, a bill was introduced in the Georgia state legislature that follows California's bill earlier this fall. California's legislation would allow student athlete's to do endorsements and profit from their images. It would also allow student athletes to sign with agents. From the AJC this morning.... “Not only is this an idea whose time has come, but Georgia schools would be at a decisive disadvantage when it comes to recruiting with other states that join California in implementing this act if we fail to do the same,” said state Rep. Billy Mitchell, a Democrat from Stone Mountain who is sponsoring the legislation. The bill would also allow players to hire agents to represent them and prohibit schools from removing athletes’ eligibility because they earn money. This sounds like Pandora's box being opened. Will high school athletes sign agents that will negotiate the best marketing deals with school's boosters? Will talent become more concentrated at big name (high brand equity) schools? How about shoe contracts? Will future Zion Williamson level talents be directed to play in "pay" states by shoe companies? Does this allow a run of the mill "4-star" athlete to be directly paid? $100,000 for a signing day autograph? And lastly — what's motivating this? Why is the push coming from the states?