By Iacovos Iacovides, APC Sports Consulting Ltd
Last June, Florida’s Governor Rick DeSantis signed the Intercollegiate Athlete Compensation and Rights Bill into law. Florida’s move follows California’s precedent, but many other states have similar bills in progress. These laws allow college athletes to profit from their name, image, and likeness. Such laws challenge the NCAA’s amateurism rule, which has long prevented athletes from profiting. The NCAA has profited off athletes for decades while denying them fair compensation. However, it seems that the trend is now irreversible, and the NCAA will adjust its rules regarding amateurism. What does this mean for female athletes?
The most significant effect will be new investment opportunities. Female sports have always lacked the attention and funding male sports receive. However, there is growing momentum around gender equality, both politically and socially. Legislative efforts at local, national, and supranational levels aim to promote gender equality in sports. Alongside these efforts, social justice projects globally push for equality across all areas of society. Even purely financially motivated investors now see the potential in the largely untapped market of women’s sports.
Female athletes will also benefit from this legislation. While male athletes struggle to turn professional after college, the situation is even harder for female athletes. Denying female athletes the opportunity to make money in college is more damaging. This legislation enables women to earn money while still in college. In a world defined by social media, athletes without a social media presence struggle for exposure. With creativity, building a strong social media presence can open various opportunities for women athletes. Their college status also provides a built-in student audience to leverage for further opportunities. Even without turning professional, a strong social media strategy can help women build brands outside sports.
College sports will resemble professional sports and serve as a stepping stone to what comes next. Athletes will earn money early, easing the transition to professional sports and potentially reducing the “sudden wealth” effect. This change means athletes will engage with concepts like budgeting, saving, and investing during college. With more options, athletes will make more decisions. To navigate these choices, athletes can seek guidance from advisers. Carefully chosen advisers can help college athletes thrive and maximize opportunities.
Although relaxing the amateurism rule can be freeing for female athletes, its impact will depend on future steps. It’s possible that money will flood male sports instead of benefiting female competitions, worsening existing inequalities. Research suggests that many colleges spend more on men’s sports than women’s sports. They also offer more scholarships for male athletes, even though Title IX mandates proportional spending between male and female sports.
Investors might prefer male athletes because of the short-term returns they can generate, even if investing in female sports proves more profitable long-term. To see positive results for female athletes, mechanisms or incentives must direct investments into female sports. Leaving it solely to the market might not ensure success for female sports.
Relaxing the amateurism rule could bring great benefits to athletes, particularly women. It will attract investment in college sports, creating opportunities for athletes to profit financially. Athletes can also develop their image and skills, easing the transition to professional sports. However, existing gender inequalities may worsen unless specific actions are taken. The new reality must operate within a framework that ensures positive social impact.