Knight Commission Report, Latest Federal Bill, Big League Advance, Dam Nation, + ICYMI | NIL Newsletter #180
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Quick Hitters:
Knight Commission Releases Financial Projections Through 2032
The Knight Commission on Intercollegiate Athletics, founded in 1989 to promote reforms in college athletics, released a new report on Wednesday containing financial projections for FBS programs through 2032.
Key points include:
In 2032, total annual athletics revenue from all sources is projected to be $20.9 billion.
The Power (or Autonomy) 5* projects to be responsible for $16.7 billion of that sum.
*Assuming it remains the Power 5 (not 4)
Total compensation for football coaching staffs at Power 5 FBS programs is projected to be $1.363 billion.
Comparatively, total spending on “athlete scholarships and medical expenses” for all athletes of all collegiate sports is projected to be $1.372 billion.
The full report is available HERE.
Rep. Gus Bilirakis Introduces New Draft of Federal NIL Legislation
Bilirakis, who initially introduced the Fairness, Accountability, and Integrity in Representation of College Sports Act in May, released a new draft this week.
The draft focuses heavily on collectives, primarily to prohibit them from entering into NIL agreements with student-athletes until those athletes have been enrolled for 90 days.
Similarly, agents cannot sign agreements until the student-athlete has been enrolled for 45 days.
These changes are an effort to prevent tampering and recruitment enticements: “This is purely an anti-collective bill in its current form,” said one collective leader.
More on the new draft is available HERE.
Gervon Dexter Latest to File Suit Against BLA
Big League Advance (BLA), an investment firm offering athletes an up-front payment for a percentage of future earnings, entered into an agreement with Gervon Dexter, now a Chicago Bear, during his time at Florida.
According to the suit, Dexter agreed to pay BLA 15% of his pre-tax NFL earnings for the next 25 years in exchange for a one-time payment of $436,485.
Dexters current contract with the Bears totals four years and $6.72 million, entitling BLA to approximately $1 million.
Florida Representative Chip LaMarca described the deal as a “predatory loan.”
This is not the first time BLA was the subject of a suit. In 2018, MLB Catcher Francisco Mejìa filed suit, claiming the company used “unconscionable tactics” to encourage him to sign the deal. He later dropped the suit.
BLA’s most profitable investment to this point is in Fernando Tatis Jr., who will send the company roughly $27.2 million from his $340 million extension.
More on the story is available HERE.
Anonymous Donor Launches Dam Nation Fundraising Campaign
On Wednesday, the Oregon State-focused Dam Nation Collective announced the “Mission to $1 Million” Challenge Campaign.
According to a press release received by OSC from Patrick Klinger, President of Agile Marketing, every contribution, up to $1 million, will be matched by the anonymous donor.
“The OSU community has always excelled when our passionate fans have something to rally towards together,” said Dam Nation co-founder Kyle Bjornstad. “Given the recent developments across the collegiate athletics landscape, including the Pac-12, we believe OSU Athletics is a program fans across America are embracing. This challenge is a spark that can rally Beaver Nation - and college sports fans everywhere - to support student-athletes who truly deserve it during these times.”
The full press release is available HERE.
ICYMI
The California Legends collective fundraising campaign raised more than $1.2 million in 48 hours. LINK
Dabo Swinney’s strong stance against the transfer portal and NIL hasn’t worked as planned. LINK
Could NIL play a role in Caleb Williams returning to school? 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!