DES MOINES, Iowa — The NCAA is a billion-dollar industry and now student-athletes in Iowa are one step closer to taking their own cut of it.
On Tuesday the Iowa Senate subcommittee unanimously approved Senate File 2058, which would prohibit the NCAA from penalizing college athletes from benefiting financially from their own name, image and likeness.
“We have all this cash flowing around the performance of the student-athlete on the field and you start looking at how unfair it is to have that much money in the system and have the athlete on an island excluded from all of that,” said Democratic Senator Nate Boulton, who co-wrote the bill with Republican Senator Brad Zaun.
In September, California set off a domino effect by passing a college athlete compensation bill, and now states like Minnesota, South Carolina, Florida and Iowa look to follow their lead. One major difference that could set Iowa apart is the bill will give schools the option to hold athletes’ money until after they are done competing in college.
Boulton said, “The trust account at the universities can be set up to insulate the student-athlete from obvious pressures on campus but also to insulate from ill will and wrongfully motivated investments by the student-athlete. Having the separation from a performance on Saturday and a payday on Sunday is going to be important.”
If the bill were to become law, it would not take effect until 2023, which is the same year as California’s. The bill now moves to the full Senate education committee.