Big 12 Exploring Innovative Ways to Compete and Employment Status Bill Moves Forward in the House | Newsletter #244
Welcome to the NIL Newsletter by Optimum Sports Consulting - providing valuable, actionable NIL resources for athletes, administrators, agencies and other sport professionals.
Today’s newsletter includes the Big 12’s creative approaches to generating revenue, the House’s attempt to end college athletes employment, monumental NIL deals and NIL bills, and more.
Keep up to date on all of our newsletters and content by checking out past Optimum Sports Consulting Newsletters, and following us on Twitter!
This Monday Newsletter includes:
1. Big 12’s Potential Naming Rights and Private Equity Deal
2. Bill to Ban College Athletes Status as Employees Moves Forward
4. What’s Coming Up in the World of NIL
5. Legal Updates: Nebraska Signs NIL Bill into Law and NC Bans NIL for Public High Schoolers
6. News/tips for administrators and student athletes
Major News
Big 12 Exploring a Monumental Private Equity Investment
Big 12 leaders are weighing a potential landmark private equity investment as the league committed to narrowing the revenue gap between themselves and the two top conferences – the SEC and Big Ten.
The Big 12 is exploring a cash deal with CVC Capital Partners for as much as $1 billion in exchange for as much as a 20% stake in the league.
As part of the deal, the 16 conference members would receive a portion of the cash investment, and the league would receive access to CVC’s investment services and clients.
While some leaders are bullish on the potential deal, pushback exists from some of the conference’s school presidents.
CLICK HERE to learn more.
Big 12 Considering a Name Change in Allstate Naming Rights Deal
The Big 12 is engaged in discussions with Allstate to sell the naming rights of its conference for a reported $30-50 million annual payout to the conference.
The BIG 12 Conference is slated to pay each team roughly $32 million annually in media rights money for the 2025 season. In comparison, the Big Ten’s new media deal will pay its schools around $80-100 million annually.
Name change possibilities could include Big Allstate Conference or Allstate 12 Conference.
Conference USA is also deeply exploring a multi-million dollar naming rights sponsorship. One of the companies under consideration is Globe Life with possible names including Globe Life Conference USA and Globe Life Conference.
CLICK HERE to learn more.
GOP Bill to Ban College Athletes as Employees Advances Past House Panel
The U.S. House of Representatives Education and the Workforce Committee held a hearing Thursday on bill H.R. 8534, otherwise known as the “Protecting Student Athletes’ Economic Freedom Act”. The bill would ban college athletes potential status as employees of their schools, conference, and the NCAA - which in turn would prevent them from unionizing.
The bill advanced through the legislative process as a majority of the Education and Workforce committee voted to report the bill to the House with a favorable recommendation.
H.R. 8534 will likely face several layers of political and legal opposition if it continues to move forward. Biden, a strong supporter of union rights, would likely veto H.R. 8534, and even if H.R. 8534 becomes law, it would likely be challenged in court.
CLICK HERE to learn more.
Other Notable Stories to Follow
The University of Texas’ Collective, Texas One Fund, becomes first NIL collective to join Passes - LINK
The Tennessee NIL collective has teamed up with Rocco's bar in Omaha for the College World Series Jell-O Shot Competition - LINK
What’s Coming Up Next For NIL
July 19th, 2024 | EA College Football 2025 release
Legal Updates
Nebraska Signs NIL Bill into Law
Legislature Bill 1393 was officially signed into law, allowing institutions to compensate athletes through NIL if permitted or authorized by the policy of an athletic association or school, a court order, or a settlement agreement.
The bill also states athletes should not be qualified as employees based on “compensation for the use of the student-athlete’s name, image, or likeness rights or athletic reputation”.
The bill also includes a provision that NIL contracts between companies and athletes that are shared with the school shall remain private and confidential.
CLICK HERE to learn more.
North Carolina Bans NIL for High School Athletes in Public School
North Carolina Board of Education approved a policy that prohibits NIL activities for student-athletes who want to play sports at a public high school in 2024 and 2025.
Currently, 37 local athletic associations allow student-athletes to participate in NIL deals without forfeiting the ability to play high school sports.
CLICK HERE to learn more.
Optimum Sports Consulting is here to help.
For athletes looking for NIL insight and advisement, administrators and collectives looking for resources and facilitating a best-in class process, or agents looking to navigate the changing landscape, we’re here to help!
Message us now for a free consultation.
FOR ATHLETES
Notes for the Week
Florida’s two-way star, Jac Caglianone, becomes first college baseball player to sign with Topps and Fanatics - LINK
Kansas State’s basketball program landed Coleman Hawkins, the top remaining player in the transfer portal, for a deal believed to be worth around $2 million from the Wildcats' NIL collective - LINK
Kansas State quarterback Avery Johnson released a line of T-shirts, long-sleeved T-shirts and hoodies through his own website - LINK
Tip of the Week: Take into account the potential taxes you may need to pay as a result of your NIL deals
As opposed to most regular day jobs where employers typically withhold taxes from your check, many NIL agreements pass the responsibility for paying taxes to the student athlete. Depending on your earnings, you may want the help of an accountant as you may have to pay a self employment tax.
FOR ADMINS
Notes for the Week
Auburn AD, John Cohen, warned of the difficulties that lie ahead with Revenue Sharing. Whether the revenue comes from removing roster spots from Football and/or Basketball, or cutting some sports altogether, Cohen stated that it is “going to come from budgets already in our athletic department” - LINK
Tip of the Week: If you are considering investments from 3rd parties, take into account what kind of control they would want and when they would want it.
When making a deal to give a minority stake to investors, schools and conferences should be very careful in reading over the terms of the contract to understand exactly how much influence over decision-making their new business partners will have.
Thanks for Reading!
Keep up to date on all of our newsletters and content by checking out past Optimum Sports Consulting Newsletters, and following us on Twitter!