NCAA’s compensation pivot means young athletes could become homebuyers

Some athletes could make enough to buy a home for themselves or family

Oct.October 29, 2019 05:09 PM
UCLA Basketball (Credit: Getty Images and iStock)

UCLA Basketball (Credit: Getty Images and iStock)

An NCAA decision Tuesday means college athletes nationwide could soon be allowed to earn compensation for endorsement deals.

The landmark decision is a stark reversal of the collegiate sports association’s decades-long stance against compensation for athletes. The NCAA’s governing board directed its three divisions to make changes to compensation rules by no later than January 2021, according to the Wall Street Journal.

Some top-tier college athletes may secure lucrative endorsement contracts and some might look to buy homes for themselves or family members.

The decision comes a month after California lawmakers passed a law requiring schools in the state to allow their athletes to receive compensation for endorsements and other uses of their likenesses. The NCAA fiercely fought the bill and threatened to bar those students from its competitions.

But many pro and former college athletes strongly supported California’s bill, including NBA superstar LeBron James. The NCAA has annual revenues above $1 billion and many believe that money is made off the backs of athletes.

Kofi Nartey, a Compass agent in Los Angeles and a former University of California, Berkeley football player, supported California’s bill. He told The Real Deal that he thinks colleges should help prepare students for their new financial responsibility, adding that agents have an increased responsibility if they find themselves representing a young athlete searching for a property.
“We have a built-in responsibility because we are dealing with the largest financial decision of most people’s lives,” Nartey said.

The NCAA hasn’t yet hammered out the details of their new rules. California State Senator Nancy Skinner, who co-authored California’s bill, called the move “great progress” but said any rule that limited what an athlete could make would be “unacceptable.” [WSJ]Dennis Lynch

Related Articles

(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

Harry Macklowe and 220 East 59th Street 

Singapore firm is buying Harry Macklowe’s stake in Midtown tower

Natasha Page and Jason Walker

Lawsuit: Douglas Elliman broker called me a “mulatto”

Aby Rosen and Lever House at 390 Park Avenue (Credit: Getty Images and Google Maps)

Aby Rosen says Tod Waterman stabbed him in back on Lever House deal

The Daily Digest - Tuesday

Commercial rent stabilization bill makes a comeback, retail leasing gets boost from falling rents

220 Central Park South (Credit: Getty Images)

Vornado’s 220 Central Park South closes $64M condo sale