NIL Coming Under Scrutiny

[toddc 13,194]

Report: College leaders plan to take action regarding NIL collectives

Griffin McVeigh•about 2 hours

Streeter Lecka/Getty Images

Discussion surrounding college football recently has been dominated by NIL. How the process in which players get paid based on their Name, Image, and Likeness is being highly debated and according to a report, college leaders are going to find a way to limit collectives.

“College leaders are gearing up to issue a warning to hundreds of wealthy boosters who are using name, image and likeness (NIL) ventures to involve themselves in recruiting,” Ross Dellenger of Sports Illustrated is reporting.

“University administrators, part of a task force to review NIL, are finalizing additional guidelines that are expected to clarify that boosters and booster-led collectives are prohibited from involvement in recruiting, multiple sources tell Sports Illustrated. The guidelines will provide more guidance to member schools on what many administrators say are NIL-disguised “pay for play” deals orchestrated by donors to induce prospects, recruit players off other college teams and retain their own athletes.”

The “pay for play” type NIL deals have become prevalent when recruiting in the transfer portal and not just in college football. College basketball has gone through some of the same struggles as coaches and boosters attempt to bring top programs into their programs.

Ultimately, the goal of the task force is to find a way where NIL deals cannot be associated with high school prospects and players in the transfer portal. Instead, deals must be struck with players already on the roster, the way NIL was intended to be used.

Dellenger points out schools cannot control how their donors spend money. However, if they are found to be providing “pay for play” NIL deals, NCAA violations could be handed down to the programs.

A source inside the report says things are already “out of hand” with how NIL is being run within college athletics. They think boosters do not need to be involved in the recruiting process, which in return would not make money a top priority when picking a school.

Top schools across the country have collectives for their players to profit off NIL, with Oklahoma being one of the latest to launch theirs. You can add the likes of Alabama, Georgia, Florida, Notre Dame, Texas, Texas A&M, and many more to the list as well.

Now, there is going to be some kind of regulation to make sure everything is done in a clean and fair way. A potential legal battle could ensue from the task force’s decision per Dellenger but for now, NIL is still considered the wild, wild west.

 

 

[toddc 13,194]

Just now, toddc said:

, deals must be struck with players already on the roster, the way NIL was intended to be used.

Most important piece for me that can fix a lot of the problems.

[W.E.D 11,070]

So they have a bunch of rule and near zero effort in enforcing them and near impossible to catch a team cheating just like before. 

29 minutes ago, toddc said:

Most important piece for me that can fix a lot of the problems.

I read that and what changes besides they get their deal they day they enroll in school?

 

[AUatHeart 624]

1 hour ago, toddc said:

Most important piece for me that can fix a lot of the problems.

That’s not going to change anything.

If you sign with us, this will be in your bank account the next day, will still happen and nothing will change.

[Tigerbelle 5,299]

Typical. They did absolutely nothing to help struggling student athletes, and made billions for decades. Now all of sudden athletes have the control so the college leaders want to get involved?  What a joke.

 

[keesler 5,922]

Who are these College Leaders?

[CCTAU 3,284]

The cat’s out of the bag. If a player is 18, that player can strike any deal they want. With whomever they want. Whenever they want. A declawed cat has no recourse. 

[Mikey 16,540]

These "college leaders" better be aware of the legal rulings. There is next to nothing they can do about any of this without breaking the law themselves.

What the hell did anybody expect when this can of worms was opened? Most expected an un controllable mess and that's exactly what we have today.

[IronMan70 3,277]

The NCAA can make all the rules they want but the USSC already ruled against them. They don't have a chance.  

[abw0004 10,102]

I said this a week or so ago, but this is to be expected with any major change like the NIL.  You see it in the political realm as well.  It was rushed through a tad early to appease universities so there will be a trial and error of sorts.

Also, like with any good thing, there will be those that try to take advantage of the system and push the boundaries until amendments are forced to be made, ruining it for those with good intentions.  Yes, I am looking at you Texas A&M and USC.

There are just too many unknowns, which is why a good amount of people are not giving money quite yet.  Part of the reason why two of my clients are not contributing to Auburn’s NIL is they want more clarity on the tax ramifications (the other half being they want more buy-in from Harsin).  One of the things I am doing this week actually is working with our tax law counsel on the deductibility of a NIL investment coming from the family’s company arguing it falls under marketing expenses.  This is why I am currently headed to Savannah actually, to meet with the family inquiring so they may contribute to UGA’s NIL.  🤢

[AUApostle 7,648]

This has me thinking about the NFL salary cap.  Have pro teams tried to do similar…where they orchestrate a deal with Nike or UA behind the scenes for a star player so they can officially pay the player less?

Edited May 4, 2022 by AUDevil

[AUGoo 2,657]

13 hours ago, toddc said:

to make sure everything is done in a clean and fair way.

Bwahahahahaha!

[AUGoo 2,657]

11 hours ago, Tigerbelle said:

Typical. They did absolutely nothing to help struggling student athletes, and made billions for decades. Now all of sudden athletes have the control so the college leaders want to get involved?  What a joke.

 

I understand the sentiment on both sides.  How do you keep a somewhat level playing field for NCAA sports. I don;t think AU stands a chance against the likes of aTm and Texas.  At the same time how do you let the players get compensated without it warping the sport?

Maybe have the money put into a trust fund and set a limit of access until such time as player has left the university.($10,000?/$50,000? per year) If it's a "walk on" player, school costs plus $X per year?  The time is gonna come when the scholarship limits are meaningless when you can now pay a player enough that the scholarship is pitence. Look at the bama QB last year in 7 figures.  Why waste a schollie on him.  He can afford school now without a problem.

Any other ideas as to how to even it up?

[Mikey 16,540]

23 minutes ago, AUGoo said:

The time is gonna come when the scholarship limits are meaningless when you can now pay a player enough that the scholarship is pitence. Look at the bama QB last year in 7 figures.  Why waste a schollie on him.  He can afford school now without a problem.

I think that many people are just now realizing this, though it was predicted by some on the recruiting forum here over a year ago.

[W.E.D 11,070]

I don't see what the NCAA can do to limit what the USSC has ruled on.  But I'm not a lawyer.

 

[woodford 3,655]

If 20 years ago the NCAA just decided to start looking the other way and had a type of gentleman’s agreement with conferences and schools that we won’t probe your program unless you’re committing actual crimes we wouldn’t have any of this garbage out in the open. 

[autigeremt 6,560]

Make them Semi-Professionals with real contracts. The term "student athlete" doesn't apply to big time athletics anyways. 

[oracle79 3,569]

The prototype has already been laid out at a different level. Have the player paint a self-portrait, and then pay him whatever you think he is worth for it. Simple.

[gctiger 922]

A few months ago I posted my concerns about NIL and the transfer portal becoming like the Wild Wild West and I got blasted by several other members.  I knew that it wouldn’t work out well for Auburn, and it certainly hasn’t so far.  I long for the days when college football was more of an amateur sport.  

[PoetTiger 1,896]

Next up…IRS, state, and local governments will want a slice of this new found “income” these athletes are making. The value of a scholarship, housing, meals, apparel, etc. is now secondary to NIL. I am all for players receiving a stipend and money for their likeness (like #2 Cam jersey), but it has to be some form of oversight or this is gonna continue to get worse.

[Win4AU 4,051]

With the NIL being so new I think you're gonna see a lot of ebbs and flows similar to something like a NFT or bitcoin.  Company's are still trying to figure out the impact of having a star college player advertising them so the market is still looking for the sweet spot.  If the ROI isn't there you may see companies less likely to shell out a couple mill for a 18 year old that may or may not pan out.  Same goes if it goes the other way.  I know Nascar is struggling to find sponsors as a lot of the bigger brands have pulled back in recent years as advertising has changed.  It would be a good research paper if any Auburn business school kids want to dive in.  

[W.E.D 11,070]

17 minutes ago, PoetTiger said:

Next up…IRS, state, and local governments will want a slice of this new found “income” these athletes are making.

It's literally income.  Of course they will have to pay taxes.  that's nothing new

[Dual-Threat Rigby 8,628]

I saw the average income for 2023 classes on On3 yesterday…it’s wonderful news for Auburn that regulation is coming, that’s all I can say lol

We and 93% of the sport are out of our leagues 

[Dual-Threat Rigby 8,628]

On 5/4/2022 at 9:27 AM, woodford said:

If 20 years ago the NCAA just decided to start looking the other way and had a type of gentleman’s agreement with conferences and schools that we won’t probe your program unless you’re committing actual crimes we wouldn’t have any of this garbage out in the open. 

Idk if it can be called garbage if it’s been interwired in college sports as long as there’s been a competitive aspect to college sports

[Hank2020 3,191]

1 hour ago, gctiger said:

A few months ago I posted my concerns about NIL and the transfer portal becoming like the Wild Wild West and I got blasted by several other members.  I knew that it wouldn’t work out well for Auburn, and it certainly hasn’t so far.  I long for the days when college football was more of an amateur sport.  

I understand the attraction to “ the way it has been for a long time”. If “the powers that be” would have had the intestinal fortitude to “really” have players future, health, and general well being as the primary concern, this “wild wild west” might have looked much different. Obviously baby step moves in right direction would have been better, but they (PTB) didn’t so flood gates open. Eventually things will normalize but will never go back the way it was, IMO.