Georgia Governor Signs Executive Order Granting Schools Legal Cover to Pay Athletes Directly

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ICARO Media Group
Politics
17/09/2024 19h11

In a groundbreaking move, Governor Brian Kemp of Georgia has signed an executive order allowing schools in the state to pay their athletes directly. This order comes as a blow to the NCAA's current rules, which prohibit schools from compensating athletes for the use of their name, image, and likeness (NIL). With the order effective immediately, Georgia becomes the second state, following Virginia, to provide legal protection for schools offering direct compensation to their student-athletes.

The executive order signed by Governor Kemp specifically prohibits the NCAA and athletic conferences from punishing any Georgia university or college for providing such compensation to their intercollegiate student-athletes. This bold step puts Georgia schools at the forefront of the ongoing debate about the fair treatment and financial benefits of collegiate athletes.

It is important to note that while the NCAA has agreed to drop its restrictions on schools paying for NIL deals as part of a pending antitrust settlement, the agreement has not yet been finalized. If approved, the new rules are expected to come into effect at the beginning of the next academic year. However, Georgia's executive order bypasses the need to wait for the settlement, allowing schools in the state to take immediate action.

Interestingly, sources have revealed that neither Georgia Tech nor Georgia, the two power conference schools in the state, currently have plans to start paying their players immediately. Instead, the executive order grants them the option to compensate athletes if other schools across the country begin doing so. This cautious approach showcases a wait-and-see approach within the state's athletic programs.

With regards to the pending antitrust settlement, its approval would not only remove NCAA restrictions but also impose a cap on the direct payments that U.S. schools can provide to their athletes. While the exact figures have not been disclosed, it is expected that the cap would be slightly over $20 million in the first year and increase annually. However, Georgia and Virginia, under their current laws, have the freedom to pay athletes without any limit on the amount of money they can provide.

The NCAA has yet to respond to the recent executive order signed by Governor Kemp. It remains to be seen how the association will react and whether it will challenge the order if it wishes to prevent the direct payment of athletes in Georgia.

Other states, such as Missouri, have also been considering similar legislation to enable their schools to compensate athletes. Missouri's law allows schools to direct funds to a third party, who can then pay athletes for their appearances in marketing materials. These developments indicate a nationwide trend towards reevaluating the traditional rules and regulations governing collegiate athletics.

Governor Kemp's executive order in Georgia has undoubtedly sparked discussion about the future of collegiate sports and the financial opportunities available to student-athletes. As the landscape continues to evolve, it is clear that the conversation around compensating athletes for their NIL will remain at the forefront of the sports industry.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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