ATLANTA — Georgia Governor Brian Kemp signed an executive order on Tuesday making it legal for universities to pay student-athletes for using their name, image or likeness.
However, Kemp's executive order specifies that "no postsecondary educational institution shall use funds allocated by the State of Georgia for such compensation."
Previously, students could only receive money through donor collectives or businesses seeking to use athletes for a promotion. Kemp's order now argues that universities within the state can pay their athletes directly without facing repercussions from the NCAA.
The governor argued that his order would help compensate athletes while waiting for news on a proposed settlement in a lawsuit that could permit direct payments across the nation.
Division I athletes and former athletes behind the suit are seeking more modest hourly wages similar to those earned by their peers in work-study programs. They argue that colleges are violating fair labor practices by failing to pay them for the time they dedicate to their sports, which they say can average 30 or more hours per week.
Celine Mangum is the vice president of Altius Sports Partners College, described as a leading advisory and consulting firm in college athletics that specializes in NIL. She said ASP has seen "almost a roller coaster of different state laws being added or amended based on what the need is and the institutions wanting to do more for their athletes," she explained.
"It all goes back to, how do we continue to provide these opportunities for our athletes and position us as an institution in the best situation moving forward?" Mangum, who shared how one of ASP's employees works directly with athletes at the University of Georgia, described.
The bigger picture
The NCAA still has some rules regarding NIL compensation, which has ballooned into the millions for thousands of athletes. The schools themselves can't pay, and school employees, like coaches and athletic department administrators, can't be involved in the negotiation of NIL deals.
Faced with a wave of state laws clearing the way for college athletes to earn money based on their celebrity, the NCAA lifted its ban in 2021 while making it clear that its approximately 500,000 athletes are still considered amateurs who cannot be paid to play.
NIL wasn't meant to be a stand-in for paying college athletes, but that's what it has become, with collectives carrying the load while trying to navigate NCAA rules.
Collective representatives have not been permitted to directly talk dollars with recruits -- whether from high school or the transfer portal -- or present them with contracts. Athletes are technically not allowed to sign contracts until after they enrolled.