California has legalized direct payments to student-athletes, a change reflecting a shift from amateur to professional status in college sports. Under a class-action lawsuit settlement, universities can distribute up to $20.5 million this year to athletes, primarily benefiting football and men's basketball players. Public universities may utilize taxpayer funds for these payments, with about 30% of UC Berkeley's athletic budget being state-supported. While athletes have been compensated through scholarships and brand deals, direct payments represent a new stage in college athletics that comes with specific restrictions for the programs.
California's new law allows universities to directly pay student-athletes, marking a significant departure from traditional amateur status. Up to $20.5 million may be distributed this year.
Schools may use taxpayer funds to pay athletes, raising concerns about public financial support for these programs, especially when 30% of UC Berkeley's athletic budget comes from state funds.
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