College football learns to play by market rules

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The NCAA will allow college athletes to be paid for the use of their name, image and likeness, after opposing a law in California. Earlier this month, Three_Guineas said the NCAA was fighting a losing battle.

California Governor Gavin Newsom signed a bill into law on Sept. 30 that will allow college athletes in the U.S. state to be paid for the use of their name, image, or likeness. The law will come into effect in 2023.

College sports generated $14 billion in revenue in 2018, according to the New York Times, and the National Collegiate Athletic Association itself brought in over $1 billion. The three most profitable football programs in 2017 were Texas A&M University, The University of Texas, and the University of Michigan. Texas A&M‘s football program generated an average $148 million in annual revenue from 2014 to 2016, with $107 million in profit. The University of Texas generated $133 million, with $87 million in profit, and the University of Michigan brought in $127 million, with $75 million in profit.

 

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