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Georgia Governor Passes Executive Order Blocking NCAA from Enforcing NIL Rules for In-State Shools

There’s a lot of money in college athletics. Some of that money is channeled through “NIL” compensation, which is short for Name-Image-Likeness compensation. See name, image and likeness (NIL). In June 2021, the Supreme Court unanimously ruled against the NCAA in NCAA v. Alston that the NCAA could not limit education-related payments to student-athletes. Athletes were allowed to make money from the NIL.
Georgia state officials announced Tuesday “Georgia governor Brian Kemp has signed an executive order prohibiting the NCAA from enforcing NIL legislation against in-state schools.” Georgia state law would supersede NCAA rules.  “The ruling would give a major advantage to in-state schools, especially the University of Georgia, as the rules surrounding athlete compensation continue to evolve.”
As quoted by media sources, according to the order: Neither the NCAA, an athletic conference, nor any other organization with authority over intercollegiate athletics shall take any adverse action against a postsecondary educational institution in the State of Georgia for such institution facilitating compensation, offering compensation, or compensating an intercollegiate student-athlete for the use of such student-athlete’s NIL.”
The executive order is time-limited: it will “remain valid only until a formal settlement or federal legislation is passed to deal with issues of athlete compensation.” Most notably, the House v. NCAA class action lawsuit is in the final stages of settlement and expected to be finalized in time for the 2025-26 academic year.
The House v. NCAA settlement “is set to dramatically transform college athletics by allowing programs to share more than 20% of athletic department revenue. Decision-makers desperately want to avoid a piecemeal solution to NIL legislation in the meantime.”
As reported, multiple states have considered similar measures in recent months. Sources say the state of Missouri worked on a similar move earlier this year, “but stood down after being discouraged by SEC officials.” Now that Georgia acted, though, the rest of the SEC could view themselves as (at) a recruiting disadvantage against the Bulldogs and act accordingly.
D&B Staff

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