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Jose Garcia

(2,653 posts)
Thu May 6, 2021, 03:09 PM May 2021

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

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

26 replies = new reply since forum marked as read
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New Georgia law legalizing college athlete endorsements also allows schools to take athletes' money (Original Post) Jose Garcia May 2021 OP
OMG that is pure evil! Initech May 2021 #1
They get a check upon graduating jimfields33 May 2021 #4
Yo man, I'd think that all of what they actually earned would be even more helpful to them... LanternWaste May 2021 #8
And the compounded interest on that 75% being held? Claire Oh Nette May 2021 #14
Let's just stop pretending that they are student athletes.... TheRealNorth May 2021 #2
Right...This is disgusting at all levels Escurumbele May 2021 #7
Don't see a real problem with that. Players will go where they can increase their exposure and Hoyt May 2021 #3
FFS - just a little less slavery there - taking 75% of endorsements. This clause is B.S: kysrsoze May 2021 #5
upon graduation. Claire Oh Nette May 2021 #15
Wrong onenote May 2021 #21
Per the article: Claire Oh Nette May 2021 #22
See post 18 onenote May 2021 #24
Saw that. Thanks. Claire Oh Nette May 2021 #25
It was enacted with unanimous Democratic support. onenote May 2021 #26
This could destroy college athletics in Georgia kimbutgar May 2021 #6
If the hold back provision hurts recruitment, it won't be exercised. onenote May 2021 #19
First it was the Olympics, now it is college, soon will be High School, and who knows where it stops Escurumbele May 2021 #9
I would think this would still run afoul of NCAA rules... TheRealNorth May 2021 #10
That sounds suspiciously like socialism! sdfernando May 2021 #11
A high percentage of the athletes in the major sports, football and basketball, never graduate. everyonematters May 2021 #12
No they would't onenote May 2021 #20
A question I have always had re: college athletes DENVERPOPS May 2021 #13
Based on my buddy who kicked for BYU until he blew his knee during preseason practice? Claire Oh Nette May 2021 #16
I hope someone who knows DENVERPOPS May 2021 #17
Lots of comments here from folks who haven't bothered to read the law onenote May 2021 #18
INteresting Claire Oh Nette May 2021 #23

jimfields33

(16,705 posts)
4. They get a check upon graduating
Thu May 6, 2021, 04:03 PM
May 2021

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

(37,748 posts)
8. Yo man, I'd think that all of what they actually earned would be even more helpful to them...
Thu May 6, 2021, 05:32 PM
May 2021

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

Claire Oh Nette

(2,636 posts)
14. And the compounded interest on that 75% being held?
Thu May 6, 2021, 08:26 PM
May 2021

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

(9,536 posts)
2. Let's just stop pretending that they are student athletes....
Thu May 6, 2021, 03:33 PM
May 2021

And make them minor league football/basketball teams.

 

Hoyt

(54,770 posts)
3. Don't see a real problem with that. Players will go where they can increase their exposure and
Thu May 6, 2021, 03:54 PM
May 2021

negotiate the best deal for them.

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

kysrsoze

(6,040 posts)
5. FFS - just a little less slavery there - taking 75% of endorsements. This clause is B.S:
Thu May 6, 2021, 04:38 PM
May 2021

"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

(2,636 posts)
22. Per the article:
Fri May 7, 2021, 10:06 AM
May 2021

"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?

Claire Oh Nette

(2,636 posts)
25. Saw that. Thanks.
Fri May 7, 2021, 10:25 AM
May 2021

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.

kimbutgar

(21,511 posts)
6. This could destroy college athletics in Georgia
Thu May 6, 2021, 04:52 PM
May 2021

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

onenote

(43,254 posts)
19. If the hold back provision hurts recruitment, it won't be exercised.
Fri May 7, 2021, 09:22 AM
May 2021

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

(3,449 posts)
9. First it was the Olympics, now it is college, soon will be High School, and who knows where it stops
Thu May 6, 2021, 05:33 PM
May 2021

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.

sdfernando

(5,017 posts)
11. That sounds suspiciously like socialism!
Thu May 6, 2021, 06:28 PM
May 2021

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

everyonematters

(3,450 posts)
12. A high percentage of the athletes in the major sports, football and basketball, never graduate.
Thu May 6, 2021, 07:11 PM
May 2021

They would be getting fleeced.

onenote

(43,254 posts)
20. No they would't
Fri May 7, 2021, 09:23 AM
May 2021

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

DENVERPOPS

(9,120 posts)
13. A question I have always had re: college athletes
Thu May 6, 2021, 08:15 PM
May 2021

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

(2,636 posts)
16. Based on my buddy who kicked for BYU until he blew his knee during preseason practice?
Thu May 6, 2021, 08:33 PM
May 2021

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

(9,120 posts)
17. I hope someone who knows
Thu May 6, 2021, 08:41 PM
May 2021

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

(43,254 posts)
18. Lots of comments here from folks who haven't bothered to read the law
Fri May 7, 2021, 09:19 AM
May 2021

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

(2,636 posts)
23. INteresting
Fri May 7, 2021, 10:14 AM
May 2021

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

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