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ATLANTA — With the backing of elected officials, universities in several states are finding ways to boost their ability to attract and retain top athletes with direct compensation. And at least one school is placing the burden directly on fans.
Universities in Georgia are positioned to pay athletes directly thanks to an executive order signed by the state's governor that insulates them from any action the NCAA might take against them.
Gov. Brian Kemp issued the order Tuesday that prohibits the NCAA or athletic conferences from punishing universities and colleges in Georgia for "facilitating compensation, offering compensation, or compensating an intercollegiate student-athlete for the use of such student's NIL." It includes the caveat that schools can't use state funds to pay athletes.
The order comes as the NCAA and Power Five conferences await final approval on a court settlement that would create a revenue-sharing model in which schools could distribute at least $22 million per year directly to athletes starting in the 2025-2026 season.
"We extend our sincere gratitude to Gov. Brian Kemp for his leadership today," Georgia athletic director Josh Brooks and Georgia Tech athletic director J Batt said in a joint statement to ESPN on Tuesday. "In the absence of nationwide name, image and likeness regulation, this executive order helps our institutions with the necessary tools to fully support our student-athletes in their pursuit of NIL opportunities, remain competitive with our peers and secure the long-term success of our athletics programs."
Citing unidentified sources, ESPN reported that neither Georgia nor Georgia Tech plans to start paying athletes immediately.
Virginia first to allow direct payments
Georgia is not the first state in which government leaders have cleared the way for universities to directly compensate athletes.
In April, Virginia Gov. Glenn Youngkin signed what is believed to be a first-of-its-kind measure into law that allows state colleges and universities to directly pay their athletes through NIL deals. The bill passed by the Virginia General Assembly took effect July 1.
"If this law gets us closer to a federal or a national solution for college athletics, then it will be more than worthwhile," University of Virginia athletic director Carla Williams said in April, per the Associated Press. "Until then, we have an obligation to ensure we maintain an elite athletics program at UVA."
Neither Virginia nor Virginia Tech have publicly disclosed plans for directly paying players since the law took effect.
Other states have considered legislation to help their schools facilitate payment to players, ESPN reported, citing Missouri as an example. That state has a law permitting schools to direct money to a third party, which in turn pays athletes to appear in marketing material for the school.
Currently, college athletes receive payments through collectives, organizations usually founded by alumni and supporters of a school that connect athletes to money-making opportunities as well as negotiate their compensation packages. Collectives — which are often endorsed by the university — allow donors, boosters and fans to contribute money directly to athletes, who typically must provide a small service to get paid.
Oklahoma State earlier this year announced a plan for football players to wear helmets with a QR code linked to a fund so fans could donate money to the program's name, image, likeness pool. But the NCAA nixed the idea, saying the stickers are advertising and/or commercial marks, which are not permitted.
Tennessee to charge fans 'talent fee'
The University of Tennessee has come up with another way to generate funds to pay athletes. The school intends to add a 10% "talent fee" to season and single-game tickets for Volunteer football starting in 2025. The school also plans to raise ticket prices 4.5% along with the surcharge.
"It's a talent fee, and it's going directly to the talent," said Tennessee athletic director Danny White, per Sports Illustrated. "It's going to our student-athletes as part of this new world order in college sports. So I know our fans will embrace it."
Or will they?
"I'd think twice about the embrace of a price hike on fans who have seen nothing but constantly increasing ticket costs. After begging fans to donate hard-earned money to their NIL collective for the last three years, the Volunteer Athletic Department also wants those same fans to subsidize their athlete payment costs. How far can Volunteer administration expect fans to stretch their wallets?" Noah Henderson, a sports management department professor at Loyola University Chicago, wrote in the Sports Illustrated article.
"There are plenty of ways athletic departments can cut costs and generate revenue to offset potential athlete NIL revenue share payments. Passing the buck to those wanting to attend games is a selfish and tone-deaf move to preserve the opulent spending within Tennessee's athletic department," he wrote.
The school estimates the fee will raise about $10 million a year.
