Georgia Governor Signs Order Allows Schools Pay Players, Boosting Student-Athlete Opportunities

Overview

In Georgia, a new executive order has been signed, allowing schools to directly pay student-athletes for the use of their name, image, and likeness (NIL).

This initiative, led by Governor Brian Kemp, gives Georgia schools the ability to financially compensate athletes without fear of NCAA penalties.

The NCAA, which traditionally has prohibited direct payments from schools to athletes, is currently adjusting its policies following a pending antitrust settlement.

Georgia’s order is similar to previous legislation passed in Virginia. The rule there also protects schools from NCAA repercussions if they choose to pay athletes directly for NIL opportunities.

However, both major institutions in Georgia, the University of Georgia and Georgia Tech, have stated that they do not currently plan to implement these changes.

They retain the option to begin direct payments if peer institutions across the country start doing so.

Key figures in the state, like Georgia athletic director Josh Brooks and Georgia Tech athletic director J Batt, have expressed gratitude for the governor’s leadership in this matter.

They emphasize that the order is essential for maintaining competitiveness with other universities and for supporting athletes in their NIL pursuits.

The implications of the executive order are significant for college sports in the Southeastern Conference (SEC) and beyond. Without a national standard for NIL compensations, states like Georgia are forging ahead independently.

Other states have either enacted or are considering similar measures to provide their schools with tools to entice or reward athletes.

Currently, the NCAA has not commented on this development. Their previous stance against direct payment is being reevaluated due to the ongoing antitrust settlement, which aims to revise existing rules.

The proposed changes are expected to be effective in the next academic year if finalized.

In the meantime, Georgia schools have an unprecedented opportunity to offer NIL deals. This move might spark a broader shift across other U.S. schools, possibly leading to a unified approach in collegiate athletics.

The legal framework in states like Missouri offers yet another method. Missouri allows schools to pay a third party, which then compensates athletes for appearing in marketing efforts.

This indirect approach still supports the athletes financially while adhering to current regulations.

The antitrust settlement currently under review proposes a cap on direct payments from schools to athletes. Initially, the cap would be set slightly above $20 million and would increase each year.

However, Georgia and Virginia are not bound by such limits under their current laws.

Georgia’s executive order presents both an opportunity and a challenge. The ability for schools to start direct payments is immediate, and any move by the NCAA to counter this would likely entail legal action.

The balance between supporting athletes and maintaining competitive equity is delicate, and the outcome of these changes could reshape the landscape of college athletics.

With the backdrop of the NCAA’s evolving stance and various state regulations, institutions must navigate these waters carefully.

Georgia has set a precedent for direct NIL payments, a step that could inspire similar actions nationwide, altering the dynamics of student-athletes’ rights and compensation in college sports.