New Georgia law legalizing college athlete endorsements also allows schools to take athletes' money

[Jose Garcia]

Source: Yahoo Sports

College athletes in Georgia are now allowed to collect endorsements and sponsorships. And their schools can take a significant cut of that money if they want.

Georgia Gov. Brian Kemp (R) signed the state's new bill regulating athletes' name, image and likeness rights on Thursday. Kemp held his signing ceremony at the University of Georgia with a Bulldog backdrop in the athletic department's recruiting lounge. The symbolism was meant to be obvious for a law ostensibly designed to let athletes profit off their own image rights starting on July 1.

But there's a provision in the law that allows colleges to have significant control over athletes' endorsement money.

The bill that Kemp signed into law allows schools across the state to take up to 75% of an athlete's endorsement income. That cut would be deposited into a pool for all athletes at the school and then redistributed upon athletes' graduation.

Read more: https://sports.yahoo.com/new-georgia-law-legalizing-college-athlete-endorsements-also-allows-schools-to-take-athletes-money-143850090.html

[Initech]

1. OMG that is pure evil!

[jimfields33]

4. They get a check upon graduating

So they get 25 percent during the 4 years and a check at the end. I’d think that would be helpful for them.

I think they should have to pay tuition now and give scholarships money to other students in the school.

[LanternWaste]

8. Yo man, I'd think that all of what they actually earned would be even more helpful to them...

" I’d think that would be helpful for them..."

[Claire Oh Nette]

14. And the compounded interest on that 75% being held?

Why not allow the athletes who score endorsements keep their 25% while in school and set up a individual trust they can access after they leave school? WHat's the University's management fee for this plan? What interest will be kept by the school?

Kemp's allowing wage theft. The SEC and UGA already negotiate fat TV cable and radio contracts, as well as shoe contracts for their athletic teams.

Some questions: Does the kid who goes pro get his deferred payment when he leaves, or when he graduates? From that institution, or the one he goes to during the off season to finish his degree after he's turned pro early? What about the kid who tears up an ACL or a rotator cuff in his junior season, who loses his scholarship?

[TheRealNorth]

2. Let's just stop pretending that they are student athletes....

And make them minor league football/basketball teams.

[Escurumbele]

7. Right...This is disgusting at all levels

$$$ is the real god to too many people.

[Hoyt]

3. Don't see a real problem with that. Players will go where they can increase their exposure and

negotiate the best deal for them.

Wish everything were not about money, but that's kind of the way it is nowadays.

[kysrsoze]

5. FFS - just a little less slavery there - taking 75% of endorsements. This clause is B.S:

"That cut would be deposited into a pool for all athletes at the school and then redistributed upon athletes' graduation." Yeah, we'll see where that money goes. I can guarantee it won't go where it should - just like lottery proceeds.

[Claire Oh Nette]

15. upon graduation.

Leave early? DOn't graduate?
Nah, we'll keep that 75% agent's fee.

Usury.

[onenote]

21. Wrong

Graduation is not a pre-condition for participating in the earnings pool.

[Claire Oh Nette]

22. Per the article:

"The bill that Kemp signed into law allows schools across the state to take up to 75% of an athlete's endorsement income. That cut would be deposited into a pool for all athletes at the school and then redistributed upon athletes' graduation."


Graduation, or leaving school?

[onenote]

24. See post 18

[Claire Oh Nette]

25. Saw that. Thanks.

I find it fascinating that the University of GA says it will allow students to keep their own earnings. This is Kemp thing, not something universities asked for, as far as I can tell. Seems designed to grift interest and leftover funds.

Will wait and see how it's actually implemented.

[onenote]

26. It was enacted with unanimous Democratic support.

[kimbutgar]

6. This could destroy college athletics in Georgia

College that allow students to get money will go there instead of Georgia universities.

[onenote]

19. If the hold back provision hurts recruitment, it won't be exercised.

University of Georgia has already said it won't exercise the hold back option.

If anything, the Georgia law will help college athletics in Georgia at the expense of schools in states that don't have laws allowing students to be compensated for endorsements. The good thing is that this will put pressure on other states to pass such laws.

[Escurumbele]

9. First it was the Olympics, now it is college, soon will be High School, and who knows where it stops

This could happen.

In England and many parts of Europe they recruit kids at the age of five, they become part of the big teams youth academies, they actually get scholarships and they grow up playing for the association, and eventually the professional team.

If you look at football teams in England, Spain and other parts of Europe you can read about it. David Beckham was one of those, he was raised in the Manchester United youth academy. They know when a kid is five years old that the kid will become a star, how they know I don't know, but they know.

[TheRealNorth]

10. I would think this would still run afoul of NCAA rules...

But I don't know for sure.

[sdfernando]

11. That sounds suspiciously like socialism!

That sounds suspiciously like socialism!....wealth redistribution!

[everyonematters]

12. A high percentage of the athletes in the major sports, football and basketball, never graduate.

They would be getting fleeced.

[onenote]

20. No they would't

Graduation is not a precondition for receiving funds from the earnings pool. Students who withdraw rather than graduate also can participate.

[DENVERPOPS]

13. A question I have always had re: college athletes

If they get injured, say in their sophomore year and it is serious enough that it ends their ability to play, does the college/university continue giving them a full ride scholarship until they finish school???????????

[Claire Oh Nette]

16. Based on my buddy who kicked for BYU until he blew his knee during preseason practice?

No scholarship for you.

And home he came. Full ride, heavily recruited blue chips? Maybe. So few marketable for two or three year college basketball and football players stay around through graduation.

They are employees of the university. They work at their sports. Pay them a stipend, since they can't work. We don't tune in to watch administrators or coaches, but players wearing uniforms we like to win the game. No athletes, no tv contracts.

Exploitation and entertainment based on...physical characteristics. For no pay, or deferred pay. Hmmm.

[DENVERPOPS]

17. I hope someone who knows

level one sports in college can answer this for us!

I had a friend who was a true Green Beret in Nam. After he rotated out, he joined a special forces reserve unit in his state.
He was active, and loved it. One day, the suddenly quit and I asked him why. He had learned that if he was disabled he didn't begin to get the medical care, disability pay, etc that he would if he were still in the full time instead of reserves.
He told me that if you are injured or disabled while serving in the Reserves, the military is only required to "fix you up as well as they could" and then you were on your own....
I don't know if that has changed. He also said that the military doesn't make it a point to tell you about that when you sign up for the reserves...

[onenote]

18. Lots of comments here from folks who haven't bothered to read the law

For example, graduating is NOT a precondition for receiving earnings that are held back pursuant to an agreement with the university. Also, many schools almost certainly will not seek to exercise the hold back option because it will adversely impact recruiting. The University of Georgia has already said it will allow student athletes to keep all of their earnings immediately.

Here is a link to the new law for those that want to read it themselves. https://legiscan.com/GA/text/HB617/2021


And here is the relevant provision about the "hold back" option:

(B) Team contracts may provide for a pooling arrangement whereby student athletes who
receive compensation for the use of their name, image, or likeness pursuant to this article
agree to contribute a portion of the compensation they receive pursuant to such contract to
a fund for the benefit of individuals previously enrolled as student athletes in the same
postsecondary educational institution as such student athlete, provided that such pooling
arrangement meets the following conditions:
when the student is not engaged in official activities of the intercollegiate athletic program; provided, however, that such contract may provide for a pooling arrangement as provided for in subparagraph (B) of this paragraph.
(i) Student athletes shall not be required to contribute an amount equal to more than
75 percent of the compensation received for the use of their name, image, or likeness
pursuant to this article;
(ii) Each postsecondary educational institution shall establish only for the purposes of this paragraph an escrow account in any bank or lending institution subject to
regulation by this state only;
(iii) All contributions from student athletes who receive compensation for the use of
their name, image, or likeness pursuant to this article shall be deposited in such
escrow account by the athletic director of the postsecondary educational institution, or his or her designee;
(iv) Upon graduation or withdrawal for at least 12 months from the postsecondary
educational institution, individuals who were student athletes prior to such graduation
or withdrawal, shall be eligible to receive a pro rata share of the pooled contributions
based on the number of months the individual was a student athlete; and
(v) The postsecondary educational institution shall provide for the implementation
of the provisions of this paragraph in a manner that does not discriminate against or
treat differently individuals based upon race, gender, or other personal status
protected by federal or state law.

[Claire Oh Nette]

23. INteresting

Still seems like other people deciding for individual athletes what they will do with their endorsement earnings.

The pro rata distribution when the individual athlete leaves the institution, the guy who leaves after two seasons, who was good enough to merit an individual endorsement has to get back a pro rated portion of his own money?

I'm sure it was set up with the athletes financial interests at the forefront. /s