State of California NIL Laws: What College Athletes and Sponsors Need to Know

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Introduction to The State of California NIL Law

California Governor Signs Bill Allowing College Athletes To Get Paid

The SF News

On August 31, 2021, The State of California passed Bill 26, a Name, Image, and Likeness bill that allows California student athletes to make money off their NILs. California began passing legislation legalizing student athletes getting compensation for their NILs back in 2019, when California Governor Gavin Newsom signing into law Bill 206, or the “Fair Pay to Play Act”. This bill was set to go into effect January 1, 2023 and allow student athletes to pocket any NIL-related money they made, but with the recent landmark 9-0 Supreme Court ruling, California has been forced to recalibrate in order to stay competitive.

The author of the original bill, California Senator Nancy Skinner, introduced Senate Bill 26, which proposed a move date of September 1, 2021 for the enactment of the NIL bill. It was signed the day before and is now in full effect.

Unique Provisions for California NIL Law

While the California NIL Law is certainly unique in its own right, one aspect it has over others states is the fact that Lebron James himself hosted the original 2019 bill-signing ceremony.

The new bill penned by Senator Skinner states that community college athletes can also earn compensation for their NILs, whereas Bill 206 did not originally include student athletes attending community colleges.

As opposed to many Southern states, California has no state law-mandated restriction on what kind of endorsements these student athletes can accept. States like Texas have provisions in their NIL bills that prohibit athletes from working with companies like e-cigarette brands, alcohol, and sports gambling.

As this bill rolls out more formally, the schools in California are all reacting differently. Read on to find out how your company can work to partner with a California student athlete, or how athletes can start to build and profit off their NIL brands.

University of Southern California and the California NIL Law

Source: Los Angeles Times

With the ability to sponsor University of Southern California athletes becoming legal, there has been a push to give 2005 Heisman Trophy winner Reggie Bush his accolades back after he was stripped of them in 2010 when NCAA investigators discovered that his parents had received impermissible funds. Unfortunately, the Heisman Trust declined to do so, blaming the NCAA for not reinstating Bush’s statistics that prove his Heisman-worthy sports prowess.

For business owners who find themselves asking “how can my company partner with a University of Southern California athlete?”, look no further than IconSource. We can connect you to your ideal brand ambassador and help you navigate the complex NIL waters. Contact us to learn more about your company’s NIL potential.

What University of Southern California Athletes Should Know About California NIL

In June, USC announced their partnership with Altius Sports Partners, an NIL advisory and education firm, to help get their school NIL program off the ground. As a school with one of the most successful athletic programs in the nation, they need to be prepared for the shift that NIL will cause in the lives of their student athletes. They are in the initial stages of developing a comprehensive educational plan for their athletes, staff, and coaches to assist in this transition.

Student athletes already have days full of academics, sports activities, and studying. NIL is only going to add to that list of responsibilities. With Icon Source, student athletes can manage their profiles on a single mobile app—which sends all required reporting data directly to the school, or to the school's desired disclosure software.

And what about taxes? No matter how many deals, large or small, that an athlete completes on Icon Source, they will be provided a single 1099. Most importantly, Icon Source forces brands to use a single contract, non-editable, which protects the students from unforeseen issues.

Icon Source was founded in 2018 by Chase Garrett, former Athlete Marketing Manager at Red Bull, and is now leading the way in helping athletes make the most of their NIL while also partnering with brands to ensure the creation of mutually beneficial relationships between athletes and companies.

If you’re not sure where to start, contact someone at Icon Source and get your questions answered today.

University of California Los Angeles and the California NIL Law

Source: Los Angeles Times

UCLA is in a particularly unique and highly visible position with the advent of the new California NIL bill. Sitting smack dab in the middle of one of the most media-focused cities in America, the wealth potential of any UCLA athlete is remarkable.

And their student athletes have been known to challenge the rules preventing them from tapping into this immense world of wealth in the past, with former UCLA basketball star Ed O’Bannon filing the NIL-related court case O’Bannon v NCAA back in 2014. It challenged the idea that the NCAA could profit off of the NILs of players, but the players themselves could not.

Now, many athletes can be seen partnering with known brands and large companies, but local restaurants and businesses also have much to gain. Something like player autographs on menus is an example of the creativity businesses can use when partnering with athletes and taking advantage of the profit potential of their NIL. Neighborhood-level endorsements from college town athletes are now possible, opening up an entire market that did not exist in California before California NIL Bill 23.

If you work for a company that wants to know what athletes are available and recognizable, Icon Source can help you collaborate with University of California Los Angeles athletes. Contact us today.

What University of California Los Angeles Athletes Should Know About California NIL

Several UCLA athletes already know exactly what to do given the parameters of this new bill. Dorian Thompson-Robinson, UCLA’s senior quarterback, established his own clothing line via NCAA waiver back in July, already earning reportedly $10,000 and putting it all directly back into the business, so as not to break the previous NCAA regulations.

Senior gymnast Margzetta Frazier has over 120,000 followers on Instagram and 283,000 on TikTok, positioning her as a perfect candidate to make a significant amount of money off of her NIL.

However, UCLA has been largely silent on how exactly they are changing as a university to accommodate these rules. Administrators have talked about the athletic department building an NIL program, but it remains to be seen.

With that in mind, it’s important that UCLA athletes know the best NIL practices to ensure they’re operating within the law. Whether an athlete is simply looking for free gear or a way to make some extra cash, or if they’re looking to turn their personal brand into a long-term business, there are opportunities to do both.

Icon Source can help connect athletes to the brands they know and love, while also showing them other opportunities to get the most out of their NIL. If you’re an athlete looking for sponsorship, or if you’re just interested in learning what is out there, contact us to learn more about the State of California NIL laws and how they could benefit you.

Stanford University and the California NIL Law

Source: Sports Illustrated

Stanford’s Coach Shaw and Athletic Director Bernard Muir have come out of the gate in the wake of the California NIL bill adamant about the preservation of their student athletes’ integrity. They recognize that there is a potential for companies to exploit their players, and they want to make sure to provide these players with the resources necessary to capitalize on the new California NIL rules, but do so in a smart and beneficial way.

The use of third-parties and software developers to help facilitate the relationships between companies and student athletes is going to continue to become more and more prevalent as people discover the best ways to connect and partner with student athletes.

Whatever your goals, Icon Source can help businesses navigate the tricky waters of working with both athletes and their respective universities. So if you’re asking yourself “how can my company partner with Stanford athletes?”, then you’ve come to the right place. Reach out to someone today and we’ll answer any of your questions.

What Stanford University Athletes Should Know About California NIL

Stanford is one of the first California universities to form an official, named program supporting NIL education efforts. Called “Cardinal Connect”, the university announced the program the night before the new NCAA rules went into effect. This educational program is meant to provide the structure and resources necessary to set any Stanford athlete up for success when it comes to leveraging their NIL.

Stanford plans to leverage their vast alumni network as well as their connections to Silicon Valley to help set their athletes in the right direction when it comes to accepting contracts and endorsements from businesses and brands.

As Stanford athletes work to learn and grow through the Cardinal Connect program, it’s always helpful to have other resources at one’s disposal. IconSource is a great resource for anyone looking to navigate the NIL wild west. If you have any questions, or any specific athletes, brands, or businesses you’d like to connect with, contact us and we’d be happy to learn more about your goals.

University of California Berkeley and the California NIL Law

Source: California Golden Blogs

UC Berkeley has responded to the change in NIL regulations with an offering of all of their many resources to their athletes. Much like Stanford, UC Berkeley wants to provide their students with the best understanding of what the California NIL bill means for them. UC Berkeley’s star safety Elijah Hicks was a part of efforts that will support UC Berkeley athletes “learning about how to get into deals, learning about contracts. And learning to partner with people”.

Find yourself asking “how can my company partner with a University of California Berkeley athlete?”? Platforms like IconSource seek to make it easy for businesses to connect directly with prospective athletes in a safe and secure online marketplace.

What University of California Berkeley Athletes Should Know

UC Berkeley is also ahead of the curb when it comes to providing NIL and NCAA educational resources to their student athletes. Called “GOLDEN”, the country’s number one public institution has crafted a program for its students composed of four different parts. University of California Berkeley athletes will have access to resources at UC Berkeley’s Haas School of Business, use of the Innovative Cameron Institute for Student-Athlete Development, access to Silicon Valley industry leaders, and a department-wide agreement with INFLCR, a leading brand-building platform for student athletes.

As influential as sports icons can be, it is important for University of California Berkeley athletes to know their worth and the power of their voice before capitalizing on their NIL. GOLDEN aims to give these students the knowledge they need to make the best decisions about their futures and partnerships. These university-provided tools are a great start to help student athletes seize their newfound NIL sovereignty. In order to proceed and connect with businesses directly on a safe and secure online platform, athletes should consider utilizing IconSource. We can put you in direct contact with brands that are interested in partnering with you, and you with them.

San Diego State and the California NIL Law

Source: The San Diego Union-Tribune

San Diego State has adopted a few more rules about their student athletes’ NIL use in addition to the ones outlined by Bill 26. Like some of the southern schools, San Diego State athletes are not allowed to endorse products or companies that sell alcohol or cannabis, or promote gambling.

Some San Diego athletes are already taking advantage of their leverage. Jesse Matthews, San Diego State’s wide receiver, has already signed a deal with Lakeside Sports Rentals. Originally a walk-on to the team, Matthews was told he would never play D-1 football. He got a small amount of playing time during his first season and soon found himself in a roster spot as one of the most acrobatic wide receivers in the nation.

Any brand looking to connect with and endorse San Diego State athletes such as Matthews can do so with ease on a platform like IconSource. With the infrastructure to begin partnerships between companies and San Diego State athletes, it is a great place to start in the new world of leveraging student athletes’ NILs to help a company reach their audience.

What San Diego State Athletes Should Know

With successful football and basketball programs, the school’s athletes stand a lot to gain from taking advantage of their NIL. IconSource is the best way to get in direct contact with a San Diego State athlete who would be a great partner for your company. If you have a specific athlete in mind, IconSource can help connect you with them. The easiest way to do that is to contact us.

What’s Next for California NIL Law

Student athletes, universities, and companies should pay close attention to the continuing developments in both the state of California NIL law and national laws that may be forthcoming.

Additional legislation will inevitably come up as all parties discern what NIL means for college sports and how businesses and brands can be a part of helping college athletes get paid.

While there remains a variety and inconsistency of laws at the state level, the possibility that Congress may pass federal NIL legislation is also possible. If you’re a student athlete or brand wondering what all this might mean for you, talk to Icon Source to stay up-to-date with the latest news and ahead of the latest trends.

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