Kemp order lets colleges, universities make direct NIL payments to student-athletes

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ATLANTA — Georgia colleges and universities may directly compensate student-athletes for the use of their name, image, and likeness under an executive order Gov. Brian Kemp issued Tuesday.

Kemp cited a proposed settlement agreement between the NCAA and certain athletic conferences that, if approved, would allow postsecondary institutions to provide direct NIL compensation to their student-athletes.

“Until the settlement is approved and effective, legislative and executive actions across the country create a patchwork of inconsistent rules regulating intercollegiate athletics,” the governor wrote in the executive order. “Student-athletes in the state of Georgia should compete on a level playing field and not forego compensation available to student-athletes in other states.”

The General Assembly passed legislation in 2021 legalizing NIL agreements for student-athletes attending Georgia colleges, universities, and technical colleges. Payment of NIL compensation typically has come from advertisers of products such as sports apparel but not directly from the schools.

The Georgia High School Association (GHSA) board followed up on the 2021 legislation last year by expanding NIL compensation opportunities to high school student athletes.

The GHSA rule included a number of restrictions prohibiting high school students from wearing school logos, school names, school uniforms, or any items depicting school mascots or any trademarked GHSA logo or acronym in association with NIL advertising. High-school student athletes also may not promote products that conflict with a member school’s local school district policies, including tobacco, alcohol, or controlled substances.

Kemp’s executive order prohibits colleges and universities from using state funds to pay for NIL compensation.

The order will remain in effect until the effective date of the proposed settlement or the effective date of any federal law Congress passes regulating NIL payments, whichever comes first.