Newsletter #50 | Recapping the first 6 months of NIL
Welcome to the NIL Newsletter by Optimum Sports Consulting - providing valuable, actionable NIL resources for athletes, administrators, agencies and other sport professionals.
In honor of Optimum Sports Consulting’s 50th NIL Newsletter (and 1st of 2022), this Monday edition will run through the major moments of NIL over the last six months- including news, interviews, and special segments. As always, FREE subscribers receive the first Monday NIL Newsletter of each month and one additional Thursday NIL Newsletter a month (as well as select Wednesday Special Features from members of the OSC team). PAID subscribers receive all NIL Newsletters (Monday/Thursday) and Wednesday Special Features, as well as unlimited access to OSC’s resource databases and special consulting opportunities. To become a PAID subscriber, click the button below (special pricing for schools/groups).
July 2020
Barstool Sports creates “Barstool Athletes”, potentially violates “no gambling sponsorship policy” by NCAA, state laws
Barstool Sports Founder Dave Portnoy started “Barstool Athletes,” an impromptu NIL marketing agency, on July 1st. Barstool Athletes is working on its branding by filed trademark applications with the USPTO. Within days, Barstool posted photos of student athletes in uniform on their social media channels- potentially violating school/state NIL policies and breaking IP restrictions. In Newsletter #2 we did a Deep Dive into New Mexico State swimmer Carli Baldwin’s TikTok video detailing the process Barstool took.
Yoke Gaming caught trying to steal SA’s rights in perpetuity
Yoke Gaming, an app that “enables you to play video games with your favorite athletes” paid athletes $20 each if they posted on their social media. But the fine print of the deal included allowing Yoke to have an athlete’s “rights of publicity worldwide, forever, royalty free.”
Former NCAA athletes want previous NIL penalties overturned
Former Ohio State QB Terrelle Pryor asks for vacated 2010 wins to be reinstated under new NIL policies adopted by the NCAA. Pryor and four teammates - DeVier Posey, Solomon Thomas, Mike Adams and Dan Herron - were suspended by the NCAA for the first five games of the 2011 season after trading autographs and memorabilia for cash and free tattoos at a tattoo parlor in Columbus.
Missouri Becomes 27th State to Pass NIL Legislation
Governor Mike Parson signed HB 297 Section 173.280 into law on making Missouri the 27th state to have a formal NIL law- this through an education bill. The law also has an important impact on the SEC and the Power-5 conferences of the NCAA. With the University of Missouri Tigers now under a formal NIL state policy, all 14 SEC schools are officially subject to state NIL laws.
NCAA President Mark Emmert says it is time to decentralize college athletics following the Supreme Court’s ruling in Alston
NCAA President Mark Emmert said the time is right to consider a decentralized and deregulated version of college sports, shifting power to conferences and campuses and reconsidering how schools are aligned. “When you have an environment like that it just forces us to think more about what constraints should be put in place ever on college athletes. And it should be the bare minimum,” Emmert said.
University of Michigan football players become the first to cash in on jersey sales
The M Den, the official merchandise retailer of Michigan Athletics, is now selling customized officially licensed University of Michigan football jerseys with the name and number of many current Michigan athletes. If players opt in, they receive a team-standardized royalty based on sales- jersey prices range from $75-180 (current players only).
UNC launches first group licensing program under new NIL policy
The Tar Heels partnered with The Brandr Group to allow all athletes to profit from NIL in conjunction with UNC's official IP. Participation is voluntary and does not limit the athlete's individual NIL rights and their ability to negotiate opportunities outside of the program.
Oklahoma Compliance announces that Lululemon’s “Team Program” was temporarily shut down for violating the NCAA’s Interim NIL Policy
Oklahoma’s Compliance Office announced that the NCAA has deemed it “impermissible for student athletes to participate in the Lululemon Team Program.” OU additionally clarified that, “The Lululemon Team Program uses the athlete status of a student-athlete as part of the selection criteria without a quid pro quo which is considered preferential treatment, not NIL.” Requiring a student athlete to post on social media about the Sweat Collective, rather than just receiving the free gear and discount code, would clear the whole situation up. And that is exactly what happened a day later. Dionté Sykes, a wide receiver at Colorado State - Pueblo announced via Twitter the next morning that he was doing a paid partnership with Lululemon.
August 2020
Nation’s #1 football recruit Quinn Ewers skips his senior year of high school to head to Ohio State for NIL opportunities
Quinn Ewers announces on Twitter that he will be enrolling at Ohio State early due to Texas’s ban on high school NIL. His family says that they would have preferred he stay in HS and earn money through NIL, rather than head to OSU early. He transfers to Texas in December after redshirt freshmen CJ Stroud wins the starting QB job.
Uncertainty remains for international NCAA athletes who do not know if they can engage in NIL activities just yet
“Due to U.S. visa laws… 20,000 international college athletes are currently unable to monetize their NILs like other college athletes- not only must international students’ on-campus employment be tied to their field of study, but it must be authorized by their university, which usually happens as a result of an international students’ financial hardship, and they are only allowed to work part-time,” writes Drake Group CCO Katie Lever.
Indiana Athletics unveils first-of-its-kind NIL directory
The IU Athletics NIL Directory provides information on how to contact all of Indiana University's SAs who are interested in NIL opportunities in a single location. The sport-by-sport, alphabetical directory includes direct links to the social media accounts for all participating SAs.
Clemson’s D.J. Uiagalelei signs national commercial NIL deal with Dr. Pepper
Clemson quarterback D.J. Uiagalelei will be a part of Dr. Pepper’s “Fansville” ad campaign during the upcoming college football season. Dr. Pepper announced its partnership with Uiagalelei, officially making him the first active college athlete to participate in the commercials. Forbes’ Kristi Dosh reported that Clemson’s trademarks and branding aren’t part of the Dr. Pepper campaign due to South Carolina’s NIL legislation, which specifically prohibits using an institution’s IP.
Built Bar announces controversial NIL deal with BYU Football
Built Bar offers walk-ons a privately funded scholarship in which they will receive the money directly and will have the ability to spend the money in the manner they desire. BYU releases a statement saying that all 123 football players on the team are being offered an endorsement deal with Built; scholarship athletes can earn $1,000 for being brand ambassadors. The deal is currently under NCAA investigation.
San Jose State University becomes first athletics department to build 24/7 branded radio network
AD Jeff Konya announces the creation of The Charge, an HD2 station that will produce SJSU athletics contests, podcasts, all-access show segments, coaches shows and will serve as the first-ever platform to feature SAs in an effort to enhance their opportunities with NIL.
Washington Post reporter pens op-ed on female NIL deals thus far, Fresno State’s Hanna Cavinder fights back
Reporter Candace Buckner, writing for the Washington Post, claims that NIL deals for female student athletes to this point have been for the wrong reasons: “[I]t would be great if companies recognized female athletes for their accomplishments, not just their physical assets.” Fresno State’s Hanna Cavinder argues that NIL opportunities not based solely on athletic achievement was a positive outcome. “Tearing down young women in how they choose to confidently express themselves on social media since (or before) July 1st is simply wrong.”
Top MBB prospect Emoni Bates chooses Memphis over pro options
The #4 player in the country according to 247Sports, Emoni Bates chooses Memphis and HC Penny Hardaway over pro deals that were rumored to be in the seven figures. In a since deleted portion of the article, Kristi Dosh noted that an initial report from On3 stated: “Sources told On3 that Memphis pitched a NIL deal, partnered with FedEx, to both Bates and Jalen Durden, his former AAU teammate, who committed to the Tigers a couple of weeks ago.”
September 2020
The Atlantic East Conference partners with Spry to manage NIL compliance
The Atlantic East Conference and Spry announced a conference-wide partnership to help each school manage the NIL compliance landscape. In a proactive move, conference leadership will assist in providing Spry software to all seven of the Atlantic East schools. Spry, a third-party technology solution designed to help colleges and universities navigate the rapidly evolving NIL landscape, has been active in the NIL space since becoming an LLC in January 2020 as the only compliance-focused solution for athletic departments.
Texas TEs will partner with Surly Horns in the first full crowdsourced NIL deal
The creative “Burnt Ends” program enables the Longhorns’ tight ends to monetize their NIL by tapping into the zealous community within the popular Texas message board, Surly Horns. Organizers are characterize the initiative as the nation’s first fully crowdsourced NIL program, with all of the profits funneling directly to the Texas TE room.
NHL’s Florida Panthers offer NIL deals to more than 200 FAU women’s athletes
The NHL’s Florida Panthers offer NIL contracts to every eligible women’s athlete for the FAU Owls, offering more than 200 student athletes an opportunity to partner with the team for potential endorsement opportunities. Florida is the first professional sports team to sponsor an entire women’s athletic program.
Every Michigan State MBB and Football student athlete will receive $500/month stipend in NIL deal with United Wholesale Mortgage
United Wholesale Mortgage offers NIL deals to every single member of Michigan State's football & men's basketball teams. All 133 Spartans, including walk-ons, can accept a $500 monthly stipend for the entire year. Mat Ishbia, CEO of United Wholesale Mortgage, is a former MSU basketball player. He donated $32M to the school earlier in 2021.
FAU QB N’Kosi Perry signs first alcohol-based NIL deal
N’Kosi Perry, an FAU grad transfer from Miami, signs the first-ever alcohol-related NIL deal with Islamorada Beverages- a company owned by four FAU grads. "Having a college athlete be sponsored by a liquor company is also creating awareness," VP Jose Herrera said. "We say make sure to say on all posts, 'Land or sea navigate responsibly,' (or) 'Don't drink and drive.'"
I.K. Hoffman becomes the first international brand to get in on NIL
Icon Source, a Denver based services firm backed by investors Mason Plumlee and Adam LaRoche, tweets: “I.K. Hofmann wants to hear why a NIL sponsorship will help you continue to follow your athletic dreams! Once verified, search the I.K. Hofmann opportunity on the Icon Source platform and share your story. #GermanyHasEnteredTheChat”
Duke freshman Paolo Banchero is featured in NBA 2K22
No plans have been announced yet for the return of a college basketball video game in the NIL era, but fans are able to play with Banchero in 2K before he even suits up for his first game with Duke MBB.
Gable Steveson, Olympic wrestling gold medalist, signs multiyear deal with WWE ahead of his senior year at Minnesota
Gable Steveson, the heavyweight freestyle wrestler who won gold at the Tokyo Olympics last month, signs a multiyear deal with WWE, Steveson told ESPN. The 21-year-old signed a NIL deal that will allow him to attend the University of Minnesota for his senior year and defend his Division I national championship at heavyweight. WWE will set up a remote training facility for Steveson near campus where he'll learn the finer points of in-ring work with WWE coaches.
NLRB General Counsel Jennifer Abruzzo Issues Memo on Employee Status of Players at Academic Institutions
A memo issued by NLRB GC Jennifer Abruzzo shifts the way college athletes are classified: [C]ertain Players at Academic Institutions are employees under the [National Labor Relations] Act and are entitled to be protected from retaliation when exercising their Section 7 rights. “The scholarship football players at issue in Northwestern University clearly satisfy the broad Section 2(3) definition of employee and the common-law test. Therefore, those football players, and other similarly situated Players at Academic Institutions, should be protected by Section 7 when they act concertedly to speak out about their terms and conditions of employment, or to self-organize, regardless of whether the Board ultimately certifies a bargaining unit…”
Senator Richard Burr (R-NC) Proposes New NIL Amendment
Senator Richard Burr proposes an amendment to the Section 117(c) of the Internal 4 Revenue Code of 1986 that would force SAs who make more than $20,000 off their NIL to include their athletic scholarships as federal income. SAs already pay taxes on income generated from NIL. “If an SA chooses to monetize their name, image, and likeness based on their connection to their school - in some cases earning them $1 million or more a year - their scholarship should be subject to federal income taxation.” Full text of the bill can be found HERE.
MaximBet offers NIL deal to every NCAA female SA in Colorado
MaximBet offers NIL contracts to every female student athlete in Colorado over the age of 21, regardless of whether they play Division I, II or III. Colorado’s state law does not specifically prohibit working with brands in any specific categories, including gambling. Policies at University of Colorado and Colorado State University posted online similarly carry no category prohibitions.
October 2020
Oregon announces “Division Street, Inc.” to help student athletes create and monetize their personal brands
Several Alumni and prominent Oregon Donors, including Pat Kilkenny, Ed Maletis, Jim Morse, the Papé Family, and NIKE co-founder Phil Knight, announce the formation of Division Street, Inc., a sport venture that will supercharge NIL opportunities for University of Oregon athletes (per Oregon’s press release).
U.S. House Subcommittee hearing on "A Level Playing Field: College Athletes' Rights to Their Name, Image, and Likeness"
Twitter updates from the latest NIL congressional hearing.
New York HS student athletes will be able to make NIL money
Executive Director of the New York State Public High School Athletic Association Dr. Robert Zayas announces that HS SAs will be able to make money off their NIL. The tweet read: “The @NYSPHSAA Executive Committee has approved revisions to the @NYSPHSAA Amateur Rule allowing students to benefit from their name, image & likeness (#NIL). Students will be prohibited from entering into endorsement deals "in affiliation" with their school, Section or @NYSPHSAA.”
USGA continues modernization process, updates Rules of Amateur Status that will go into effect in 2022
The U.S. Golf Association takes the next step in making the Rules of Golf easier to understand and apply. What began with a full Rules overhaul in 2019 continued with the finalization of the new Rules of Amateur Status (per Julie Williams of Golfweek). “A piece of the puzzle, of course, already went into effect in August as the USGA conducted its U.S. Women’s Amateur and U.S. Amateur championships a month after the NCAA put its interim policy on NIL into effect on July 1. In light of that decision from college golf’s governing body to allow college athletes to profit off their name and athletic career, the USGA announced it would waive most NIL-related breaches for college golfers through the end of the year as long as the player retained his or her NCAA playing eligibility.”
November 2020
Touted basketball prospect Mikey Williams signs with Puma
Williams, a 6’2” combo guard out of Vertical Academy in Charlotte, N.C., is the first American high school basketball player to sign a sneaker deal with a global brand. "I am excited to join the Puma family this early in my basketball journey," Williams said. "Puma really understands how to mix hoops and culture, two things I am passionate about."
Sarah Fuller named Director of Athlete Relations for NOCAP Sports
NOCAP Sports, a Philadelphia-based NIL startup, announces a deal with Sarah Fuller, the current soccer goalkeeper at the University of North Texas, as the company’s Director of Athlete Relations. In her role as Director of Athlete Relations, Fuller will oversee the ideation and build-out of NOCAP’s athlete products, the creation of new online initiatives focusing on user acquisition, as well as content development, among others. Sarah also is a NOCAP spokesperson.
Illinois star Kofi Cockburn suspended three games for selling merchandise before NIL rule change
Illinois MBB player Kofi Cockburn is suspended for his team's first three games by the NCAA. Cockburn, a junior, was hit with a three-game suspension for selling apparel and memorabilia in June, before the NCAA’s Interim NIL policy took effect. Cockburn declared for the 2020 NBA Draft in April, following the conclusion of the Illini's season. After declaring for the draft, Cockburn partnered with a company called The Players Trunk and sold his gear and merchandise through their website. He then pulled his name from the draft and entered the transfer portal before electing to return to Illinois for his junior season.
New Jersey State Interscholastic Athletic Association passes HS NIL
The NJSIAA’s landmark proposal that will allow high school athletes to profit off their NIL IS officially approved, passing a second reading before the Executive Committee. The committee voted in favor of the rule, 35-1 with two abstentions. The meeting was held virtually.
Gonzaga’s Drew Timme signs with Northern Quest Resort & Casino
“This is literally a whole new ballgame for us as student athletes, with amazing new opportunities available for us to earn income during our college careers,” Timme says. “I was excited when Northern Quest approached me with the idea of a partnership. They’re a strong brand in the Spokane community and they’ve been great, long-time supporters of Gonzaga basketball.” Gonzaga’s NIL Policy states: “Are there limitations on the types of NIL activities Gonzaga SAs may engage in? Yes. Gonzaga student-athletes may not engage in NIL activities that promote NCAA banned substances or sports wagering activities. In limited circumstances, other NIL opportunities may violate Gonzaga's NIL policy.” Gonzaga Compliance says, “While our policy prohibits promoting sports wagering, it does not prohibit promoting other gambling activities or a resort and casino.”
Georgia, LSU NIL deals are the subject of media lawsuits
Daniel Libit of Sportico reports that multiple media outlets are suing the University of Georgia and Louisiana State University over access to NIL deal information. So far, some schools have tried to split the difference, providing certain details about the sources and financial terms of the NIL agreements its athletes have disclosed. In August, Nevada Sports Net reported on 26 NIL deals the Nevada Wolf Pack athletes had reported between July 1 and Aug. 10. However, the school redacted the names of the SAs. Similarly, independent journalist Andy Wittry reported in July that he had received 51 copies of NIL disclosure forms, with athletes’ names redacted, from New Mexico State.
December 2020
INFLCR+ Local Exchange will create school-specific NIL marketplaces
Software company INFLCR introduces a product it says will double its revenue coming from schools that sign on. The new INFLCR+ Local Exchange creates a school-specific NIL marketplace, where approved businesses can identify, connect with and compensate athletes for endorsement deals. The average Power 5 school that works with INFLCR spends in the mid-five figures (total cost for its content software and NIL compliance product), and expanding to this new service will bring that cost to more than $100,000. Schools that currently utilize INFLCR’s existing NIL software, Verified - there are around 150 of them in Division I - have the option to add their own local exchange. Nine, including Oklahoma, Florida, Boise State and Texas A&M, have signed on at launch.
UConn’s Azzi Fudd inks deal with Steph Curry’s SC30 Inc.
Golden State Warrior Stephen Curry brings the star UConn freshman basketball player into his SC30 Inc. brand in a unique, wide-ranging partnership that will support her successes both on and off the court as the nation's top recruit builds her collegiate career. In 2018, Fudd participated in Curry's elite camp as one of two women invited to take part, and she and Curry have continued to build their friendship since. Curry also held an all-girls camp that summer.
Texas’s Clark Collective launches the “Horns with Heart” charitable program
The Clark Collective, a booster-led program for SAs at the University of Texas that rapidly raises $10 million, announces the NIL program Horns with Heart. The first project will be “The Pancake Factory” initiative for Texas offensive linemen. The new Austin-based non-profit Horns with Heart will extend offers of $50,000 to Texas Longhorns scholarship offensive linemen in 2022 to participate in charitable endeavors.
Arizona State’s Global Sports Institute finds NIL earnings for student athletes has little impact on fan experience
According to a survey from ASU’s Global Sports Institute, NIL has not significantly altered consumption habits or the perception of college sports among the majority of survey participants: 34% of respondents said NIL has no effect on either their opinion of college sports or their viewing habits, while 62% of supporters and 44% of opponents of NIL said they anticipated watching the same amount of college sports as they did before the rule change.
NCAA launches infractions investigation into BYU, Miami NIL deals
News breaks on December 8th that the NCAA is looking into NIL deals involving BYU (Built Bar) and Miami (American Top Team Gym). The BYU deal is a partnership with protein bar maker Built that provided compensation for every member of its football team; the Miami deal is an offer made by American Top Team to all 90 Hurricanes football players on scholarship.
Florida NIL legislation architect Lamarca announces amendment
Florida Representative Chip Lamarca files a new bill to amend the state’s NIL law making it easier for the Sunshine State’s schools to facilitate NIL deals for their athletes. The new bill allows schools more freedom to facilitate NIL deals by striking language that prohibited schools from “causing compensation to be directed” to athletes.
Joe Moore Award becomes first post-season college award platform to launch NIL program
The Joe Moore Award, which honors the most Outstanding Offensive Line in FBS Football, announces what it is believed to be the first post season college award to launch an NIL program for its recipients. The members of the Michigan offensive line will receive 100% of net t-shirt sales, with a portion going to a philanthropic beneficiary. The Joe Moore Award will match the players’ charitable gift, up to $10,000, to help further the reach of the winning units impact on their communities. The t-shirts and limited edition merchandise are designed by Make Your Move, an automated digital on-demand order processing and fulfillment partner and are available starting at $20.00.
OSC Interviews
Ross Dellenger (Sports Illustrated) | Newsletter #8
Dan Lust, Esq. (Gerragos & Gerragos) | Newsletter #10
Darren Heitner, Esq. (Heitner Legal) | Newsletter #12
Brandon Wimbush & Ayden Syal (MOGL) | Newsletter #24
Nicholas Lord (NOCAP Sports) | Newsletter #34
OSC’s NIL Webinar ft. Oliver Luck, Arun Thottakara and Khalil Wilkes | Video
George Pappas & JT Rogan (DYME) | Newsletter #36