Cooper Flagg Signs Monumental Gatorade Deal, Michigan Offers Over $5 Million to Star Quarterback Bryce Underwood + ICYMI | Newsletter #284

Oct 31, 2024

Today’s Thursday newsletter includes highlights from this week, important news from last week, and what to watch for.

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Recapping Major News This Week:

Although Bryce Underwood is currently committed to LSU, Michigan is doing everything they can to convince the top quarterback recruit to play for his hometown team.
According to Pete Nakos, Michigan offered Underwood an NIL package that would pay Underwood over $5 million over the next three to four years - an offer "on par" with what LSU offered him.
Michigan is 5-3 this year and has struggled to find a stable option at quarterback. Michigan has started three different quarterbacks this season; and one of their three starting quarterbacks, Jack Tuttle, recently announced his retirement due to injuries.
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17-year-old college basketball star, and the projected No. 1 pick in the 2025 NBA draft, announced a sponsorship deal with gatorade on Tuesday.
Over the summer, Flagg raised his popularity after scrimmaging with the men’s national team before the Paris Olympics. His performance over the summer got Lebron James to declare that he’d be one of the faces NBA once he enters the league.
With Flagg’s popularity growing, Flagg said he's been committed to keeping his circle (which includes sponsorship opportunities) tight. Gatorade was able to make that circle.
Flagg now joins women’s stars Paige Bueckers and Juju Watkins as the only college basketball players attached to Gatorade.
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Analysis of the Michigan State v. Mel Tucker legal battle - LINK
Michigan QB announces retirement following a concussion - LINK
Auburn hires Georgia Southern AD as new Executive Deputy AD with a focus on revenue sharing - LINK
Congressional lobbying by NCAA and athletic directors continue - LINK
NIL director: a look inside college sports newest role - LINK

Nilly, an NIL company co-founded by former NBA player Kendrick Perkins, is facing scrutiny after an investigative report revealed that the company used predatory tactics akin to offering high-interest loans.
Nilly offers athletes upfront payments in return for the use of, or sale of, an athlete's NIL for up to seven years.
Agreements can vary both in terms of what athletes are offered up front and for how long Nilly gets exclusive NIL rights. They are offered as guaranteed money but give Nilly and its investors huge cuts of money, up to 50%.
Consumer protection and finance experts worry that the structure and length of agreements with Nilly could be aimed specifically at preying on younger athletes and taking advantage of their situations, specifically citing seven years of licensing NIL rights as unusually long.
Nilly is not obligated to help its athletes fulfill any endorsement deals. That job is outsourced to the athletes themselves or to their agents. Agents typically only receive a single digit percent of their client’s negotiated earnings, much lower than the 25-50% that Nilly stands to make from its clients.
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Michigan recently made headlines for their push to sign top football recruit Bryce Underwood. As part of their pitch, Michigan offered Bryce an NIL package worth over $5 million dollars. But more importantly, it is reportedly a three-four deal. College sports have seen a lot of change over the past few years, but one of the most notable is the fact that student athletes are transferring out multiple times throughout their collegiate career to potentially maximize their opportunities and earnings.
From the athletes side, this is great. With more flexibility, they have a better chance to maximize their college years from a money and playtime perspective. If you have an opportunity to make more money at another school, you can transfer there. Not enough playing time, you can easily go somewhere that will give you more exposure. And, athletes potentially can use the threat of leaving to get more money at their respective schools.
However, this is not great for schools. Having players leave each year makes it harder for teams to develop their players and build chemistry throughout the group. Giving athletes longer term NIL packages (like the one Bryce Underwood was offered by Michigan) could help alleviate concerns that an athlete will leave their program. If the house settlement is approved, I would expect more schools to utilize long-term contracts when they use their own revenue to help recruit athletes.

Keep up to date on all of our newsletters and content by checking out past Optimum Sports Consulting Newsletters, and following us on Twitter!