Pac-12 economic threat: New California legislation attempts to redirect operating revenue to athletes

As the Pac-12’s existential crisis plays out in public, a threat to its economic model is quietly churning through the California state legislature.

Assembly Bill 252, also known as the College Athlete Protection Act, aims to create a revenue-sharing arrangement between the schools and athletes in the major sports.

The bill’s author is assembly member Chris Holden, who represents District 41 (Pasadena) and is a former San Diego State basketball player.

To craft AB 252, Holden worked closely with National College Players Association, the athlete-advocacy group that helped push forward the “Fair Pay To Play Act” — better known as name, image and likeness (NIL) — and is supported by the United Steelworkers.

But there is a significant difference in the pieces of legislation. While NIL allowed athletes to receive compensation from the private sector for endorsement and promotional endeavors, AB 252 funnels revenue currently used for athletic department operations into the pockets of the athletes in sports that meet certain financial thresholds — namely, football and basketball.

How much cash would go straight to the players? Depending on the revenue generated by the specific team, each athlete could receive $25,000 annually and have more than $100,000 waiting for them upon graduation.

If AB 252 becomes law in California, the impact likely would ripple through the Pac-12 footprint and, as was the case with NIL, spark massive change across the college sports landscape.

And it could have serious ramifications for Title IX, the 51-year-old civil rights law designed to prevent gender-based discrimination.

The bill has a difficult but not treacherous road ahead:

— It passed the assembly’s higher education committee in April by an 8-3 vote and has moved to appropriations.

— In order to reach the assembly floor during this legislative cycle, AB 252 must pass appropriations by May 19. That seems likely. Holden, the sponsor, is chair of the appropriations committee.

— At that point, AB 252 would need to pass the full assembly by June 2 in order to advance to the senate this year.

“At some point we have to recognize that what’s demanded of these athletes far exceeds what the average student is expected to contribute,” Holden said last month, after AB 252 passed the higher education committee.

“We owe it to these young people to put protections in place that match the unique position they are in and set them up for success post schooling.”

However, AB 252 could have massive consequences for Olympic sports.

The operating revenue targeted by AB 252 is currently used to fund recruiting budgets and coaches salaries for football and men’s basketball. But it also supports dozens of teams — from tennis and softball to swimming to field hockey — that don’t turn a profit.

The bill is opposed by the University of California (UCLA, Cal, etc.) and the California State University (San Jose State, Fresno State, San Diego State, etc.), which believe AB 252 would result in the elimination of non-revenue sports, in addition to any Title IX ramifications.

According to an analysis published by the appropriations committee, the UC estimated the potential impact could reach “tens of millions of dollars annually.”

The appropriations committee has scheduled a hearing on AB 252 for Thursday.