Home Accountability NCAA Governing Board Allows College Athletes to Receive Compensation
NCAA Governing Board Allows College Athletes to Receive Compensation

NCAA Governing Board Allows College Athletes to Receive Compensation

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On October 29, the NCAA Board of Governors voted to allow Divisions 1, 2 and 3 to permit athletes to receive compensation for their personal brand or celebrity, while not also becoming employees of their university. The three divisions must change their bylaws by January 2021 and with those changes, ensure that athletes will not be classified as professionals. This change of NCAA policy is likely in response to bills like California’s Fair Pay for Play Act, which mandates that athletes receive fair compensation for their work and will take effect in 2023.

The NCAA has been under siege for years. As the governing body for college sports, it has reaped the rewards of sponsorship contracts for broadcasting rights and shared little with the athletes performing on the field, court, track, diamond, course, or arena. Universities belonging to the Big 5 athletic conferences are additional beneficiaries, awarding multi-million dollar contracts to successful coaches and few benefits beyond college scholarships to their athletes. The NCAA’s dual role as regulator and enforcer is arguably influenced by the value of those big network contracts as evidenced by the verdict of no punishment for the University of North Carolina’s athletic program for steering athletes into “paper classes.” On the surface, one can only assume that the NCAA ordered its attorneys to find a loophole to avoid punishing one of college basketball’s perennially strongest programs.

“The wind of change is blowing” is the opening phrase from a speech that UK Prime Minister Harold Macmillan gave to South Africa’s Parliament in 1960, referencing its policy of apartheid. Apartheid formally ended in April of 1994. There have been several player compensation lawsuits against the NCAA, the most famous of which may be the O’Bannon v. NCAA anti-trust case initially won by O’Bannon and his fellow plaintiffs at the District Court level in August 2014. That verdict was partially affirmed and partially reversed at the Appeals Court level in September 2015 and appealed to the Supreme Court, who voted not to hear the case. 

ESPN analyst and former Duke basketball star Jay Bilas said the NCAA had plenty of opportunities to be proactive instead of reactive but instead failed to take the initiative a long time ago, noting that “…This has been coming for a long time. The state government just sped it all up…” 

The O’Bannon case is not the major “wind of change is blowing” date for the NCAA, and I’m not sure what event and date might deserve that tag. Given the level of attention that the NCAA’s policy of no pay for athletes is receiving at the state and federal legislative level, I predict extremely turbulent waters for the next few years, particularly as California’s law goes into effect along with other states considering similar legislation.

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Wally Boston Dr. Wallace E. Boston was appointed President and Chief Executive Officer of American Public University System (APUS) and its parent company, American Public Education, Inc. (APEI) in July 2004. He joined APUS as its Executive Vice President and Chief Financial Officer in 2002. In July 2016, he retired as APUS president and continued as CEO of APEI. In September 2017, he was reappointed APUS president after the resignation of Dr. Karan Powell. In September 2019, Angela Selden was named CEO of APEI, succeeding Dr. Boston who will remain APUS president until his planned retirement in June 2020. Dr. Boston guided APUS through its successful initial accreditation with the Higher Learning Commission of the North Central Association in 2006 and ten-year reaccreditation in 2011. In November 2007, he led APEI to an initial public offering on the NASDAQ Exchange. During his tenure, APUS grew to over 100,000 students, 200 degree and certificate programs, and approximately 90,000 alumni. In addition to his service as a board member of APUS and APEI, Dr. Boston is a member of the Board of Advisors of the National Institute for Learning Outcomes Assessment (NILOA), a member of the Board of Overseers of the University of Pennsylvania’s Graduate School of Education, a board member of the Presidents’ Forum, and a board member of Hondros College of Nursing and Fidelis, Inc. He has authored and co-authored papers on the topic of online post-secondary student retention, and is a frequent speaker on the impact of technology on higher education. Dr. Boston is a past Treasurer of the Board of Trustees of the McDonogh School, a private K-12 school in Baltimore. In his career prior to APEI and APUS, Dr. Boston served as either CFO, COO, or CEO of Meridian Healthcare, Manor Healthcare, Neighborcare Pharmacies, and Sun Healthcare Group. Dr. Boston is a Certified Public Accountant, Certified Management Accountant, and Chartered Global Management Accountant. He earned an A.B. degree in History from Duke University, an MBA in Marketing and Accounting from Tulane University’s Freeman School of Business Administration, and a Doctorate in Higher Education Management from the University of Pennsylvania’s Graduate School of Education. In 2008, the Board of Trustees of APUS awarded him a Doctorate in Business Administration, honoris causa, and, in April 2017, also bestowed him with the title President Emeritus. Dr. Boston lives in Owings Mills, MD with his wife Sharon and their two daughters.

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