Newsletter #106 | Congressional updates, ESPN's survey, TK Finley x Amazon, Degree's Breaking Limits Team + ICYMI Ticker
Welcome to the NIL Newsletter by Optimum Sports Consulting - providing valuable, actionable NIL resources for student athletes, administrators, agents and other sport professionals.
Recapping NIL This Week:
US Senate has multiple new NCAA-specific bills in the works
Tommy Tuberville (R-AL), the college football coach turned US senator, is spearheading the latest congressional NIL. In an interview this week, he announced his intent to draft a bipartisan NIL bill with fellow senator Joe Manchin, a conservative Democrat from West Virginia. In a letter to be sent this week to stakeholders within college sports, the two senators are seeking feedback on NIL, an unregulated issue that college officials say has created a chaotic landscape in the industry.
“I’ve talked to all my [coaching] buddies. They’ve never seen anything like it,” Tuberville says. “When you don’t have guidelines and direction, no matter what you are doing, you are lost. They are all lost right now.”
Manchin holds deep ties to college football as well. He played quarterback for his home-state Mountaineers until suffering a career-ending knee injury. He’s been a close friend with Alabama coach Nick Saban since childhood. Saban even endorsed the senator in 2018.
In the letter to stakeholders, Tuberville and Manchin write that Congress “must act to set clear” NIL ground rules as a way to protect athletes, ensure equity in the game and preserve “the time-honored tradition of college sports.” Tuberville plans to speak to his former players, those active on college teams and even recruits who experienced the first cycle of recruitment in the NIL era. The senator hopes to get all feedback by the end of August and begin drafting legislation as the 2022 football season kicks off.
Also in Congressional news, Cory Booker (D-NJ), Richard Blumenthal (D-CT) and three other senators are filing the newest version of the 2020 College Athlete Bill of Rights this week. Their office released an early copy of the bill to Sports Illustrated as well as a summary.
Sens. Brian Schatz (D-HI), Ron Wyden (D-OR) and Alex Padilla (D-CA) are other sponsors of the bill that, for now, does not include any Republican support.
The bill is substantively identical to the version that was introduced in December of 2020 except that it does not feature a revenue-sharing concept. However, Booker plans to introduce a separate, standalone bill regarding revenue sharing, a Booker staff member says.
The 2022 version of the bill provides athletes with little-to-no restrictions on NIL deals and allows for group licensing. In the only real limitation for athletes, states and schools can prohibit endorsement contracts with entities from particular industries, such as alcohol and drug companies, as long as the same restriction applies to the school or if the deal violates rules that all students are subject to. Schools are prohibited from arranging NIL deals for athletes, the bill says.
Booker and Blumenthal’s bill allows athletes the freedom to transfer an unlimited amount of times without sitting a year out, a right the NCAA currently grants to athletes only one time. Athletes would be required to give seven days notice and cannot transfer during the season or 45 days preceding the start of the season.
Breaking down ESPN’s survey of more than 200 coaches, players and administrators
Half of respondents said it's up to the federal government to create a uniform policy for NIL nationally, even if Congress has been reluctant to address the issue thus far. About a third of respondents said the NCAA should take the lead on determining a national policy, but nearly 70% of respondents said they believe the organization was hamstrung by fear of litigation in the aftermath of the Alston ruling.
Nearly 80% of respondents said NIL represents a black-market pay-for-play system that is being used to secure recruits and transfers. Meanwhile, nearly 60% of respondents said the transfer portal has created what amounts to free agency in college football, and they believe that will ultimately hurt the sport with fans.
70% of coaches and administrators said they thought the transfer portal was bad for the game, just 31% of players said the same.
Nearly half of players who responded said they felt their schools does not provide an adequate infrastructure for them to maximize their NIL opportunities. Nearly 70% said NIL opportunities are a frequent topic in their locker rooms, though it isn't proving to be the divisive issue many ADs and coaches predicted.
Amazon signs Auburn QB TJ Finley
Amazon has inked a partnership with Auburn quarterback T.J. Finley. The deal allows Finley to sell custom merchandise on Amazon Fashion’s platform. Finley is reportedly the first NCAA football player to sign with the company. The first basketball player was Clemson’s Brevin Galloway, whose deal is also through Amazon Fashion.
Finley’s custom clothing line includes T-shirts, sweatshirts, phone cases, tote bags and even pop-sockets. Items range from $17-$35 and are available to be shipped through Amazon Prime.
In an Instagram post, Finley also promoted Amazon’s Prime Student membership, reminding fans they could get free shipping if they signed up for the service.
The apparel will be printed through Merch on Demand, allowing anyone to create custom clothing with their own designs. Finley's store currently features 26 items that bear his name, from hoodie sweatshirts to long-sleeved T-shirts and pillows. One design has his initials, T.J., along with the phrase "Chosen 1." His store also has two items he did not create: T-shirts that say, "Lineman because quarterbacks need heroes too," and hoodies that read, "Nobody cares, work harder."
In an Instagram post, Finley also promoted Amazon’s Prime Student membership, reminding fans they could get free shipping if they signed up for the service.
Degree announces second NIL class
The deodorant company has announced the second edition of its Breaking Limits NIL team, which ensures college athletes have the opportunity to benefit from their work on and off the field. 18 student athletes have been added to the team, joining a list of 11 athletes who are still eligible from last year’s inaugural class.
In keeping with setting a precedent in NIL, Degree is paying its men and women selections an equitable wage. Degree is the United States version of the antiperspirant company Rexona, which is owned by British conglomerate Unilever.
This year’s roster is not finished adding athletes, though. Degree also announced Tuesday that athletes can share their stories on Degree’s Instagram. The selection process begins Aug. 2. The application deadline is Aug. 17. Applications will be reviewed and entries selected will have an opportunity to join the Breaking Limits teams.
Degree’s Breaking Limits NIL team new additions: Abby Bauleke – Wheelchair Basketball, Alabama / Abraham Montano – Football, Fresno State / Caroline Ducharme – Women’s Basketball, UConn / Chucky Hepburn – Men’s Basketball, Wisconsin / Edriss Ndiaye – Fencing, Ohio State / Griffin Brooks – Men’s Diving, Princeton / Jameson Wang – Football, Cornell / Jayda Coleman – Softball, Oklahoma / Jordan Chiles – Women’s Gymnastics, UCLA / Junior Colson – Football, Michigan / Kayleigh Truong – Women’s Basketball, Gonzaga / Kaylynne Truong – Women’s Basketball, Gonzaga / Langston Wilson – Men’s Basketball, Washington / Lexi Ellis – Track & Field, Oregon / Marlee Smith –Wrestling, Arizona State / Peyton Sippy – Women’s Cross Country, Wisconsin / Ryan Hilinski – Football, Northwestern /Sydni Black – Women’s Lacrosse, Loyola Marymount.
ICYMI Ticker
UConn WBB star Paige Bueckers suffered a torn ACL in her left knee Monday and will miss the 2022-23 season, the school announced Wednesday. "It's so so crazy bse you work so hard to get back healthy, you feel stronger than ever, and you are playing your best basketball and with one sudden movement it all shifts," Bueckers wrote. Bueckers has been a star within the NIL space over the past year, signing deals with Gatorade, Crocs, StockX, Chegg, and more.
Purdue’s stats from Year 1 of NIL (as of June 21, 2022): 80 athletes with unique NIL transactions across 15 sports / 166 transactions with compensation received / $801 was the average transaction value with pending compensation ($1,044 without pending compensation) / $179,489 was the total value of transactions 18% of athletes (457 total) had NIL transactions.
Moonshot is offering a new way to invest in athletes beyond just donations. While boosters can already contribute to their favorite athletic programs through collectives, Moonshot is bringing an investment aspect to the equation. From investors’ potential for profit and bragging rights to the athletes’ abilities to jumpstart their ascending careers financially, co-founder Dimitris Nikolaou believe their model is an attractive option for all sides. More HERE.
Michigan commit Collins Acheampong — a four-star EDGE out of Santa Margarita (Calif.) Catholic High School — shared on Twitter a graphic that showed he received an official scholarship offer from the Wolverines. The letter to Acheampong cited NIL as one benefit of playing for Michigan. The letter featured HC Jim Harbaugh’s picture and signature. “Wearing the winged helmet provides you with the opportunity to play in front of college football’s largest home crowd and be part of the most-watched team on television on any given Saturday,” the letter stated. “You can enjoy life in America’s most livable city while attending classes at the #1 Public School in the country. Altogether, your name, image and likeness will mean more backed by the largest living alumni base.”
PlayBooked, the NIL marketplace co-founded by college athlete Chloe V. Mitchell, has announced a new partnership with Basepath, an NIL operations platform for collectives and universities. Now, collectives, universities, brands and athletes will be able to access an end-to-end platform that allows all aspects of NIL to be managed in one app, complete with analytics and a user-friendly interface. More HERE.
Alabama fans can now support the Crimson Tide’s NIL collective, High Tide Traditions. “For as low as $9.99 a month and score quality, authentic swag. With 5 monthly commitment levels ranging from $9.99 - $29.99 per month, fans will receive escalating benefits and merch at each subscription level,” per a press release.
Mercury, a digital brand experience company for top athletes and devoted fans across teams and leagues, announced today the hiring of Adam Breneman as Vice President of NIL. Mercury currently serves as the engine behind fast-growing platforms, such as University of Kentucky’s Blue Chips platform and University of Kansas’ Rock Chalk platform, two specialized digital experience communities.
Pac-12 Commissioner George Kliavkoff: “Well, anti-trust is the reason why the current NCAA rules are not being enforced. The risk of anti-trust diminishes when you have a smaller number of conferences, smaller number of schools instituting rules and enforcing those rules. That’s why I’m calling for … the 10 [FBS] conferences to focus our attention as opposed to waiting for the NCAA.”
According to Indiana State Assistant Athletic Director/Compliance Joel McMullen, a total of 12 ISU SAs have entered into NIL agreements.
Towson has launched the NIL directories for the Tiger men's and women's basketball teams and will be launching other teams in the future as the 2022-23 academic year continues on. "This is an important step as we look to assist our student-athletes in the NIL era," said Towson AD Steve Eigenbrot.
Great write-up from On3 about NBC Sports Direct, an NIL program that is currently available for SAs at Notre Dame, Temple and Vanderbilt. The program breaks down how SAs are paid and what the ROI looks like for companies. More HERE.
Opendorse has made another push to open up NIL to the common fan. The company announced plans to launch school-specific marketplaces at 75 partner schools throughout fall 2022 earlier this summer. And on Monday, Opendorse unveiled a brand new user-interface, creating a public NIL marketplace with complete access to student-athletes.
Ward and Smith, P.A., a law firm based in North Carolina, has launched its NIL Practice Group. Full press release HERE.
After selling nearly 30,000 season tickets last year, Miami (FL) already has surpassed that number more than a month before the Sept. 3 opener against Bethune-Cookman. As of last week, UM had sold 5,000 more season tickets than it did for the entire 2021 season.