California college athletes are now able to earn significant income through sponsorship deals, thanks to a law enacted in 2021. This legislation allows athletes to profit from their name, image, and likeness (NIL). A recent analysis by CalMatters provides a first look at the financial impact of these deals.
The data shows that earnings vary widely among athletes. For example, UCLA gymnast Jordan Chiles received $3,000 from Grammarly, while Jaylon Tyson, a former basketball player at UC Berkeley, earned $390,000 from private donors. On the other hand, the UCLA women’s water polo team, despite winning a national championship, earned only $152 over three years.
Much of the NIL money comes from private donor groups known as collectives, which often support top athletes to keep them from transferring to other schools. For instance, a UCLA football player received $450,000 from donors for social media promotion. These collectives are not required to disclose detailed financial information, making it difficult to trace the exact flow of money.
The NIL landscape is set to change further with the proposed settlement of the House v. NCAA case, which could allow schools to pay athletes directly through revenue sharing as early as 2025. This settlement, which received preliminary approval in October 2024, aims to resolve antitrust lawsuits against the NCAA. If approved, it would designate $2.78 billion in retroactive payments to former athletes and allow current athletes to share in revenue.
Despite the financial opportunities, the system has its challenges. Experts predict legal challenges will continue, and the role of Title IX in distributing funds remains unclear. Nonetheless, the power and financial potential of college athletes are on the rise.
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