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

[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.