California Governor Signs Landmark Student-Athlete Compensation Bill on LeBron James' 'The Shop' Show

Source: HBO

Effective in 2023, the law will allow college athletes in the state of California to pursue endorsement deals.

A small step has been made in the fight for student-athlete compensation.

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California Governor Gavin Newsom appeared on LeBron James' HBO series The Shop, along with former UCLA basketball star Ed O'Bannon — famous for the lawsuit that effectively ended EA Sports' NCAA Football and March Madness series — to sign SB-206, a bill ruling that universities making over $10 million in media revenue cannot punish players for receiving payment for their likeness.

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LeBron posted the video to Twitter after the ruling was made official.

rThe entire bill is available for viewing on California's Legislative Information site. The ruling will prohibit athletes from signing contracts with organizations that are "in conflict" with the schools' pre-existing deals.

Other states are expected to follow suit. South Carolina senator Marlon Kimpson and representative Justin Bamberg have announced their plan to consider a similar bill in January.