FSU's ACC Lawsuit Moves Forward in Court, Learfield's 2nd Annual NIL Impact Report Shows 100% Growth + ICYMI | Newsletter #246

Jun 20, 2024

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

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Recapping Major News This Week:

Judge John C. Cooper Denies the ACC’s Motion to Dismiss FSU’s Lawsuit

Florida State filed a suit against the ACC on December 22nd, 2023 “in response to years of mismanagement that has left its member shcools in a deteriorating multi-media rights agreement while preventing them from joining other conferences because of draconian withdrawal penalties.”
In the suit, FSU alleges that the ACC mishandled their negotiations with ESPN, and has failed to fulfill its obligations to “generate substantial revenues” and “maximize athletic opportunities.”
With the ACC clearly falling behind other Power 5 Conferences such as the Big 10 and SEC, moving to another conference is an attractive option for football powerhouses like FSU and Clemson. However, leaving the conference could lead to substantial penalties of at least $572 million
The denial of the ACC’s motion to dismiss brings FSU’s complaint one step closer to a potential trial and/or settlement.
CLICK HERE to learn more.

Multimedia Company, Learfield, Reports $13.6 Million in Athletes Earnings and $19.4 Million in NIL Merchandise Sales

Learfield released their 2nd annual NIL report and saw 100% YoY growth in college athlete earnings and merchandise sales.
Nearly 160 D1 athletic programs, and 30,000 college athletes, are enrolled in Learfield’s Compass - a NIL dealmaking platform.
As multimedia companies like Learfield prove to be more and more effective, more schools and school-affiliated collectives will use outside agencies to help with their NIL initiatives.
CLICK HERE to learn more.

Quick Hitter News:

USC plans to opt into the House settlement’s proposed revenue sharing model if it is approved - LINK
2024 College Softball Player of the Year, NiJaree Canady, inks NIL deal with MLB PlayBall Weekend days after announcing decision to enter the transfer portal - LINK
Ollie Gordon II, one of college football’s top returning running backs, signs NIL deal with McDonald’s - LINK
Alabama freshman DB, Zabien Brown, signs with GSE Worldwide - LINK
Campus Ink's NIL store - the leader in licensed NIL merchandise - launches a series of NIL - LINK

ICYMI - Important News From the Last Few Weeks

Ten members of the “Cardiac Pack” are suing the NCAA, seeking compensation for their NIL, specifically claiming that the NCAA has been misappropriating their publicity rights for more than 40 years. And if they succeed, more former players will follow suit - LINK
NCAA agrees to eliminate eliminate all transfer restrictions. Decisions comes on the basis that the longstanding behavior of the NCAA was in violation of United States antitrust law - LINK
House v. NCAA: Power 5 conferences agree to historic $2.8 billion dollar settlement. Included in the proposal is a revenue sharing model that would allow schools to pay athletes around $20 million annually - LINK
Former top recruit, Jaden Rashada, sues the University of Florida alleging he was defrauded millions of dollars in NIL. Rashada initially declared his intent to attend Florida on the back of a lofty NIL deal. Rashada’s lawsuit comes after his NIL deal and school commitment seemingly fell through - LINK

What To Watch For: NIL Incentives Across All College Bowl Games

Shortly after Snoop Dogg inked a deal to sponsor a college football bowl game, he announced his bowl game would pay athletes on both teams that compete in the event. The Snoop Dogg Arizona Bowl is the first bowl game to announce NIL incentives to their players, but it surely will not be the last. The trend of bowl game opt-outs has been growing over the years, particularly among top NFL prospects who prefer to avoid the risk of injury in non-playoff games.

Horror stories such as the situation surrounding Jaylon Smith and his draft stock have scared NFL-ready players away from playing in non-CFP bowl games. Jaylon Smith was a consensus top-10 pick, and Mel Kiper’s Number 2 overall prospect in the 2015 NFL draft, before he suffered a catastrophic knee injury during Notre Dame’s bowl game. As a result, he fell all the way to the 34th pick and lost millions of dollars. For most players planning to make the jump to the NFL or another school, opting out in order to stay healthy and prepare for the NFL Combine (or a NIL negotiation for their services) is a better business decision. In an effort to combat the rising number of bowl game drop outs, more contests will offer NIL incentives in the future.

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