Photo from Google Images
July 1st was a big day for college athletes when the new NIL (Name Image & Likeness) era became legal. College sports will never be the same.
Not to worry, non-student athletes, the school is NOT paying the athletes a paycheck or salary (as of now). NIL allows other businesses and companies, but mostly the big boosters to pay the player directly. Not that this hasn’t been happening on campus across the country (go back and read the blog I’m Lovin’ It) for decades, now it’s just legal and a whole new level of pay to play has changed the foundation of college sports forever. I can’t wait to see how the NCAA tries to regulate this.
Should an athlete be paid to star in a commercial for the local car dealership? YES!
Should that car dealership give an athlete a car to use while a playing at the University? YES!
Should a fan in a restaurant see a student athlete(s) and offer to pay their tab? YES!
Should a student athlete be allowed to post ads on their social media for a paycheck? YES!
YES, YES, YES, YES! If all the above is allowed for a non-student athlete, why wasn’t it legal for student athletes? Before June 1st all the above would have caused school and player suspensions. “Improper benefits” is now a term of the past and college athletics are about to turn into the wild, wild west.
It’s A Business
To the student athletes: Know your value, know your brand. Don’t rush to the first offer. If you go pro, everything will change again. Long-term deals and non-compete clauses need to be valued very, very closely. Some athletes and teams will see very little cash while others will make a lot of money. If you are smart hire an attorney to read your contracts. If your school has a law program, reach out to the 3rd year law students who would charge a lot less. The fine print and all of the language in any contract is to protect the business, not you. The school is not responsible for your endorsement safety. Don’t let your ego or your uneducated friend be your legal representation. You need a professional.
Set up a business; you will need a CPA and an attorney, it will keep Uncle Sam off your back. Speaking of the most hated uncle, you will have to pay taxes, a lot of bleeping taxes. This will be a good exercise for those who go on to play in the pros. You will learn early how taxes really work. Also, if you play in California, New York, or Illinois you will pay a lot more taxes than you will in Tennessee, Texas, and Florida which all have no income taxes. EVERY state has Federal taxes and those are worse. Because the school is not paying the player per game like it works in the pros, jock tax is not applied. But I would not be surprised if the NCAA tries to find a way to tax you or charge you for using “their” platform (like wearing sponsor logos during a game) to make money. Who is responsible for teaching these kids what this all really means? That’s all my free advice, if you need help or have questions, email me.
Recruiting just got a whole lot more fun. The opportunity to win a lot of championships or play at the next level isn’t the only selling point now. How much money can you make is now going to be a decision maker and there is nothing stopping the NCAA as of right now.
BYU sent a press release that listed prohibited products players could not promote that included alcohol, tobacco, gambling, adult entertainment and coffee. (Coffee?!? Caffeine is bad in coffee form, but not in an energy drink form?) I would say if you are not 21 you should not be doing any alcohol. I only worry about gambling. Would a QB lose a game if he was paid enough money to lose/fake an injury?
All 90 of the University of Miami football players will be offered $6K ($500 a month) endorsement contracts to promote American Top Team, a mixed martial arts training academy. Will Reggie Bush get his Heisman trophy back?
The Fresno State women’s basketball standouts, Hanna and Haley known as the Cavinder twins, were the first to sign a deal in collegiate NIL history with Boost Mobile on a billboard in Times Square.
This is only week one and so much has changed. What does this look like in September, a year from now, or 10 years from now? Not every state has passed the bill and some state the bill hasn’t even been introduced. I found this map on SI.com. It just means more in the SEC has whole new meaning now.
The NCAA has been dictator by using the word compliance. Now their favorite word that held all of their control has just disappeared, for now at least. Currently there is not a nationwide policy in place or any rules that each school has to follow for what brands, products, businesses can work with. There are no caps on how much a player can earn or if they can wear logos on their official team merch. The big shoe companies like Adidas and Nike, can they go after athletes who are not at their school? There is so much room for these kids run amuck and well, just get your popcorn or checkbooks ready.