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Bill allows Iowa college athletes to earn money from sponsorships

By: - January 21, 2020 5:58 pm

A bipartisan bill introduced in the Iowa Legislature Tuesday would upend a longstanding National Collegiate Athletic Association rule that prevented college athletes nationwide from earning money off their name, face and likeness.

Senate File 3058, introduced by Sen. Nate Boulton, D-Des Moines, and Sen. Brad Zaun, R-Urbandale, prohibits Iowa universities and colleges from penalizing student athletes for earning money using their likeness. Schools will have the option to require students to deposit some or all of the funds they earn into a trust fund until they are no longer able to participate in the athletic program.

For years, the NCAA prevented student athletes from profiting off of sponsorships or third-party deals, even if their faces and names were plastered on T-shirts and commercials. Instead, they were relegated to earning money from scholarships and small stipends.

The organization, which regulates student athletes, long vowed that students should focus on their studies, not just sports and earning a profit, according to the New York Times. 

In October, the NCAA’s governing board voted to allow college athletes to get paid following pressure from lawmakers nationwide. 

But the organization still needs to create its own rules and navigate federal laws before the change comes to fruition, according to the New York Times.

If the bill becomes law, it would take effect in 2023, giving Congress and the NCAA time to figure out their own rules.

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