New bill forthcoming providing revenue sharing for college athletes. Pretty long so I'll put the first part up and then the link:
A California lawmaker introduced a bill Thursday that would reshape how college athletic departments in the state are required to share their earnings with athletes.
The proposed legislation, named the College Athlete Protection Act, calls for major money-generating college sports teams to create a fund that would pay players a share of their teams' annual revenue, a portion of which would be held in a trust for players until they complete their degree. The bill also proposes creating a 21-member, state-run panel that regulates the ways in which schools are pouring resources into protecting and educating their athletes.
Chris Holden, a former San Diego State basketball player and the current chairman of the state legislature's appropriations committee, announced the bill at a news conference in front of the Rose Bowl Stadium on Thursday afternoon.
"Through the years, college athlete concerns have been overlooked because they are not in the professional leagues," Holden said in a statement provided to ESPN. "If colleges are profiting on their players, then these students deserve equitable pathways for their careers whether that is in the professional league or in California's workforce."
The revenue-sharing portion of the bill seeks to create "fair market value compensation" for athletes. To do so, Holden's bill includes a formula designed to ensure that half of the revenue generated by each college team is dedicated to its athletes either through grant-in-aid scholarship dollars or in revenue-sharing payments.
For example, if the San Diego State basketball team generates roughly $6 million in revenue and spends roughly $500,000 on scholarships for its players, the school would have to set aside $2.5 million at the end of the year (half of the total revenue minus the cost of scholarships) for the players if the new bill becomes law.
Players would be eligible to receive up to $25,000 in annual payments at the end of their season, and any additional money would be held in a trust until they graduate. For the most profitable college teams in California, this formula could lead to hundreds of thousands of dollars paid to players who get their degrees.
www.espn.com
A California lawmaker introduced a bill Thursday that would reshape how college athletic departments in the state are required to share their earnings with athletes.
The proposed legislation, named the College Athlete Protection Act, calls for major money-generating college sports teams to create a fund that would pay players a share of their teams' annual revenue, a portion of which would be held in a trust for players until they complete their degree. The bill also proposes creating a 21-member, state-run panel that regulates the ways in which schools are pouring resources into protecting and educating their athletes.
Chris Holden, a former San Diego State basketball player and the current chairman of the state legislature's appropriations committee, announced the bill at a news conference in front of the Rose Bowl Stadium on Thursday afternoon.
"Through the years, college athlete concerns have been overlooked because they are not in the professional leagues," Holden said in a statement provided to ESPN. "If colleges are profiting on their players, then these students deserve equitable pathways for their careers whether that is in the professional league or in California's workforce."
The revenue-sharing portion of the bill seeks to create "fair market value compensation" for athletes. To do so, Holden's bill includes a formula designed to ensure that half of the revenue generated by each college team is dedicated to its athletes either through grant-in-aid scholarship dollars or in revenue-sharing payments.
For example, if the San Diego State basketball team generates roughly $6 million in revenue and spends roughly $500,000 on scholarships for its players, the school would have to set aside $2.5 million at the end of the year (half of the total revenue minus the cost of scholarships) for the players if the new bill becomes law.
Players would be eligible to receive up to $25,000 in annual payments at the end of their season, and any additional money would be held in a trust until they graduate. For the most profitable college teams in California, this formula could lead to hundreds of thousands of dollars paid to players who get their degrees.
Calif. bill proposes college sports revenue sharing
Proposed legislation in California calls for major money-generating college sports teams to create a fund that would pay players a share of their teams' annual revenue.
www.espn.com
