GA College Athletes To Profit From Endorsements Under New Law

GEORGIA — Georgia became the 12th state Thursday to pass a law allowing its college athletes to profit from endorsement deals, thanks to a bill just signed by Gov. Brian Kemp.

Now a law, House Bill 617 will allow student-athletes to earn money from their name, image and likeness, commonly known as NIL. Kemp, a University of Georgia alum, signed the bill Thursday morning at Sanford Stadium in Athens.

“I believe it (the bill) sets Georgia on the path to accomplish something that quite honestly should have been done a long time ago,” Kemp said during the signing ceremony, as quoted by Sports Illustrated.

Student-athletes won’t necessarily be free to do whatever they want with the money, according to Sports Illustrated. The legislation allows schools to require athletes to deposit up to 75 percent of whatever they earn into an escrow account. That money would then be shared directly with other athletes, based on how long they were student-athletes and not to be withdrawn until a year after they leave school.

There are a few other conditions. For one thing, student-athletes couldn’t be paid to play for a particular school, nor could they sign an endorsement deal conflicting with a team endorsement deal. Also, student-athletes would have to take five hours of a workshop to prepare them for how best to manage their money.

The bill becomes law on July 1, the same day a similar bill in Florida will go into effect once Gov. Ron DeSantis signs it.

Georgia says yes, but the NCAA still says no

While student-athletes cashing in on their names and likenesses will soon be legal in Georgia, its effect for now is largely academic — the NCAA still prohibits profiting from NIL and requires that players remain amateur.

That may soon change, though. In April 2020, the NCAA’s Board of Governors announced that it supported changing the rules to allow “compensation from third-party endorsements.” That recommendation is still on the table, but NCAA rules have yet to change. In the mean time, lawmakers from both parties have introduced federal and state legislation to force the student-athlete pay issue.

In March, the U.S. Supreme Court heard arguments in NCAA v. Alston, an antitrust case that argues for even fewer limitations on how college athletes can make a buck. A ruling is pending.

“Long term, our hope is there will be a federal solution down the road, perhaps by July 1,” University of Georgia President Jere Morehead, a member of the NCAA’s board, told University of Georgia student newspaper The Red & Black. “It may come later. It may never come. We can’t predict what Congress is going to do.”

Athletics are big business — and highly profitable — for major universities. According to a 2019 study by the Pew Charitable Trusts, the University of Georgia ranked fifth nationally for sports revenue, raking in more than $176 million that year.

If nothing else, politicians hope that an NIL law in Georgia may encourage recruits to come here instead of elsewhere.

“As alumni myself I’m a little biased, but I believe this is going to give (UGA) Coach (Kirby) Smart every bit of help he needs to bring home a national championship,” Kemp said to Atlanta Business Chronicle.

Read the stories in Sports Illustrated, Atlanta Business Chronicle and The Red & Black.

Read the text of Georgia House Bill 617.

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