Adidas Makes a Splash and NIL Complications Continue | Newsletter #243
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This Monday Newsletter includes:
1. New initiatives for high school athletes
2. What’s coming up in the world of NIL
3. News/tips for administrators, student athletes and agencies
Major News
Adidas Ushers in its Adizero 7 Class
This past Thursday, Adidas unveiled its Adizero 7 class.
The campaign was unveiled before the Overtime OT7 Finals in Tampa, which occurred over the weekend.
The collaboration between Adidas and Overtime is an extension of the multi-year contract between the two, where Adidas was named the exclusive apparel and footwear sponsor of the Overtime leagues.
Adidas inaugural Adizero 7 class formed by inking endorsement deals with seven top high school football recruits.
Adidas has become a major spender in NIL, boasting thousands of athletes that represent over 25 sports.
CLICK HERE to learn more.
HOKA Announces its NIL Initiative
HOKA, a performance footwear company and sports brand, has created a new NIL platform centered around building and enhancing the trail running community.
The hope is to grow and support the next stars of the sport of trail running.
HOKA signed three of the nation’s top high school trail runners to kick off this initiative.
These athletes will be partnered with professional mentors and have access to important events within trail running.
CLICK HERE to learn more.
What’s Coming Up Next In NIL
July 19th, 2024 | EA College Football 2025 release
July 23rd, 2024 | Deadline for UF and Coach Napier to respond to Rashada’s complaint
July 24th, 2024 | Board meeting where the FL State Board of Education will need to ratify their new NIL rule
LEGAL UPDATES
The Latest Complication for NIL: Taxes.
As student-athletes continue to make, and spend, their NIL money, many are forgetting that they need to pay taxes on it and are not setting the money aside to do so.
Tax rates vary state by state, but the federal laws are universal. The current federal rate is 37%.
Unlike payments made by NFL teams to their players, taxes are not withheld from these payments.
These young athletes likely have not had to pay taxes yet and are not getting the information they need to do so, with the probable end result being massive tax bills that they will need to settle with the IRS.
CLICK HERE to learn more.
FOR ATHLETES
Recent deals and successes from athletes
Following the FHSAA vote to approve NIL deals for high school students, the spotlight is now on 15-year-old Charlie Woods to see what deals he ends up making – LINK
Missouri football commit and No. 31 recruit in the nation, Matt Zollers, signed an NIL deal with Westwood Home Services, and in exchange for commercial appearances and social media collaborations, he received the keys to a Dodge Challenger - LINK
Chloe Mitchell, the first collegiate athlete to monetize her brand on social media, is a co-founder of the company Playbooked, which helps college athletes become influencers and helps national brands team up with athletes for advertising campaigns - LINK
Iowa State quarterback, Rocco Becht, is utilizing his NIL money to start a football camp for kids - LINK
Tip of the Week: NIL is not limited to high-profile athletes at top schools.
Most student-athletes, even those in less visible sports or at smaller programs, can also find endorsement deals. Brands are interested in collaborating with student-athletes to capitalize on their popularity and influence. Most athletes don’t understand that NIL can offer them other benefits outside of endorsement deals.
Advice from Chloe Mitchell for college athletes who want to monetize their NIL: “Stay organized, set priorities, seek guidance, build your brand, negotiate wisely and maintain balance. NIL isn’t for everyone. Don’t feel bad if it’s just not for you. If it does seem like the right fit, ensure the brands you represent resonate with you. Brands want authenticity, and you want to be true to yourself. Think long-term when you’re engaging with opportunities.”
FOR ADMINS
News of the Week
Nebraska AD, Troy Dannen, announced that Nebraska does not have the cash to compete with elite schools of the Big Ten. However, in the next couple of years, Nebraska will be fighting an even fight due to the House v. NCAA settlement and the revenue-sharing model it is ushering into college football - LINK
Basepath GM, a first of its kind tool, is expected to be adopted by athletic departments all across the country. The software is designed to provide insights on fair market value for student-athletes, supporting coaches, administrators and operators as they manage their teams and organizations - LINK
Tip of the Week: Power 5 conferences need to be prepared for the revenue-sharing model.
Colleges have been building up their collectives in order to be able to compete within the NIL space. However, with the NCAA and Power 5 conferences agreeing to a settlement, a revenue-sharing model is being ushered in. With that comes the reality that collectives and the transfer portal may become less important. Colleges need to have the budget within their athletic department to share revenue with their athletes in the future. Big schools have already started preparing for the new model, and you don’t want your school to get left behind.
FOR AGENCIES
Notes for the Week
With the FHSAA vote allowing high school athletes to capitalize on their NIL, high school athletes can hire agents, but only to serve as an adviser for NIL-related matters - LINK
Yahoo Sports NBA draft analyst, Krysten Peek, and Overtime Elite GM and Head of Basketball Operations, Damien Wilkins, discussed NIL’s role in changing the college basketball landscape as well as the NBA draft landscape. Check it out HERE.
Tip of the Week: NIL agency is about more than just securing professional representation.
Agents need to provide for their clients in whatever way their client wants or needs. Every student-athlete has their own interest areas and needs- some might just be looking for sponsorship opportunities while others see themselves as content creators that can take on more opportunities. The top NIL earners are not necessarily the top athletes in their respective sports either, which is why NIL agency is about more than just securing professional representation down the line.