Dartmouth Decision, Tennessee Update, Freshman NIL, + ICYMI | NIL Newsletter #214
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Quick Hitters:
NLRB Holds that Dartmouth Basketball Players are Employees
On Monday, the NLRB Region 1 ruled that Dartmouth Men’s Basketball players are employees of their university and can hold a union election.
“Because Dartmouth has the right to control the work performed by the Dartmouth men’s basketball team, and the players perform that work in exchange for compensation, I find that the petitioned-for basketball players are employees within the meaning of the [National Labor Relations] Act,” Laura A. Sacks, the Region 1 Director, wrote.
The “right to control” test is the current formulation of employee determination — and that right to control is determined by who sets the hours, makes hiring (and firing) decisions, provides the benefits, etc…
Dartmouth has the right, and plans to, appeal the decision, just as Northwestern did when their football players were ruled to be employees. In that case, the national NLRB declined jurisdiction, making no ruling on the issue of college athletes as employees.
The decision, while perhaps facially shocking, really comes as no surprise in light of NLRB General Counsel Jennifer Abruzzo’s 2021 memo in which she declared that college athletes are employees of their university.
NCAA’s Investigation Turns to Courtroom Drama
As mentioned on Monday, the NCAA’s investigation into Tennessee and its associated collective for improper NIL payments has proceeded into the courtroom.
On Saturday, the NCAA filed a brief opposing the motion filed by the Attorney Generals of Tennessee and Virginia. The AGs are seeking a temporary restraining order (TRO) and a preliminary injunction to prevent the NCAA from enforcing its NIL regulations.
The NCAA pointed to the longstanding traditions of amateur athletics—of course—but also to salient legal issues. The NCAA correctly pointed out that the injunctive relief requested by Tennessee and Virginia’s AGs requires a showing of “irreparable harm.”
This extraordinary showing was unlikely to be met, especially considering that Tennessee has its own state NIL law which prohibits “pay for play.”
On Tuesday, the court agreed with this, denying Tennessee’s motion for a TRO. The preliminary injunction hearing will take place next week.
Expect the courtroom dramatics to continue for some time as the NCAA must now defend on yet another front.
2024 Recruits Share on NIL, Collectives
Over 100 top recruits from the 2024 football class gathered in San Antonio for the All-American Bowl in early January.
From San Antonio, many of those recruits shared what they will receive at their future schools — deals already promised by associated NIL collectives.
15 four- and five- star recruits, all blue chippers, offered numbers. The lowest was “a few thousand dollars a month,” while the highest said “around $1 million a year.” Values ran from $72,000 a year to "between $600,000 and $800,000 a year.”
ICYMI
Georgia QB Carson Beck purchased a Lamborghini Urus Performante ($270,000 + options). LINK
The Judge who denied the TRO for Tennessee and Virginia noted that “Plaintiffs are likely to succeed on the merits of their claim under the Sherman Act.” LINK
Florida QB Commit DJ Lagway signed a deal with Leaf Trading Cards. LINK
Crocs signed six college athletes, 4 basketball players and 2 gymnasts. LINK
Have you checked out OSC’s website?
Head to www.OptimumSportsConsulting.com to find important resources and features relating to all things NIL. These resources include State by State Resources for Admins, Agents and Athletes, including our initial “OSC Summaries” for over a dozen states coming soon.
More to come too, including links to helpful state information- agency laws and information about school policies, as well as seminar/congressional notes, worksheets, and much more!