Newsletter #71 | Illini's "Day Off Social," Cavinder's Transferring, SA Risk Management, WWE x INFLCR, MSU's Second-Screen Experience + ICYMI Ticker
Welcome to the NIL Newsletter by Optimum Sports Consulting - providing valuable, actionable NIL resources for athletes, administrators, agencies and other sport professionals.
Recapping NIL This Week:
Fighting Illini partner with Day Off Social and Illini Guardians to promote mental health awareness
One hundred Illinois student athletes across all sports have partnered with Day Off Social, a national nonprofit created to encourage young people to take time away from social media in pursuit of in-person community engagement and healthy personal habits. The Day Off Social campaign asks participants to refrain from using social media platforms for one full day. In lieu of posting on social media, participants are encouraged to volunteer at local charities in order to deepen ties with the surrounding area and promote genuine interpersonal connections. At least one student athlete from each Illinois varsity sport participating in the Day Off Social campaign.
"Our goal is to use social media for good," said Pat Coyle, the founder of Day Off Social, "We want to help Gen Z develop a positive relationship with social media. It's just so critical, and Illinois student-athletes were the perfect group to help us spread our message."
Sophomore football player Casey Washington is one student-athlete who joined the initiative. "Working with Day Off Social was an easy choice for me," Washington said. "My sport gets attention on social media, and sometimes that can affect my teammates and I, off the field. I'm glad that I can use NIL to help people focus more on this issue."
The initiative is sponsored and funded entirely by Illini Guardians, a third-party nonprofit established to support Fighting Illini student-athletes through name, image and likeness activities. "Altruistic endeavors to benefit Illinois SAs is what we are all about. This is a great cause, and there was a natural fit between Illini Guardians and Day Off Social," said Louis Margaglione, a co-founder of Illini Guardians.
Cavinder’s set to enter the transfer portal
Haley Cavinder, on behalf of herself and her sister Hanna, announced this week that the two will be transferring out of Fresno State. The sisters rose to fame this Summer after announcing the first-ever NIL deal in Times Square with Boost Mobile. Full announcement HERE.
Haley had one of the best seasons in Mountain West WBB history in 2021. As a sophomore, she averaged a conference-high 19.8 points, 7.5 rebounds, 3.8 assists and 1.7 steals per game. Cavinder became the fastest Fresno State player to reach 1,000 career points. She was named Mountain West Player of the Year, becoming the third sophomore to win the award. Both Haley and Hanna have earned All-Mountain West selections each of the past two seasons.
The sisters already have NIL deals with Boost, SixStar, WWE, Champs, Eastbay, PSD Underwear and Sleeper. They also own 25% of their own clothing company Baseline, where they hold a board seat (an NIL first).
With amazing play and one of the largest social media footprints in WBB, the Cavinder’s will be on every DI coach’s radar this offseason.
Disability insurance, business organization are key issues facing SAs
In a guest column for Sportico, risk-management consultant David Brookbank discusses some of the top risk issues facing SAs (HERE).
“One solution for these elite individuals would be the formation of a limited liability corporation (LLC) or some other corporate entity to harbor the NIL proceeds. The entity receives the income rather than the individual, and, therefore, would deduct certain items as per the Internal Revenue Code. For example, an elite athlete who formed a corporation would be allowed to expense certain items (an automobile lease for business purposes, meals and entertainment directly tied to business discussions), set up a payroll account, and contribute to a simplified employee pension (SEP). They’d also be able to deduct—wait for it—their disability insurance.”
“Disability insurance may be one of the best deductions for an individual with significant NIL income. Why? The premium payments are massive, as much as $350,000 for a top athlete. Of course, by deducting the premium payments from the business, any benefits received under the disability policy would be taxable as income when/if received. Regardless, the odds are in favor of the insurance company regarding the payouts, since roughly 1-2% of permanent total disability (PTD) policies pay claims. However, the question must be considered: Would you rather have a $250,000 tax deduction and take the chance on the insurance paying out, or pay taxes on the total amount of NIL compensation with no deduction?”
“Disability coverage within intercollegiate athletics has become an arms race, to say the least, and is definitely a subject of athlete discussions regarding recruitment, retention, and now the transfer portal. We are seeing schools actually increase coverage for elite SAs. The ability to pay for disability insurance and claim a deduction for the premium for a corporation should not have a significant impact on the school’s attitude toward paying for coverage, since they’re limited by the NCAA-regulated student assistance fund from which premiums are paid.”
WWE announces partnership with INFLCR
WWE announced a multi-year partnership with INFLCR, a Teamworks product and industry leading brand building, content and NIL business management platform for college athletes, to increase the scope and scale of WWE’s NIL program called “Next In Line™”. Through the partnership, WWE will leverage INFLCR’s technology and alliances with more than 200 NCAA DI colleges and universities to reach thousands of INFLCR student-athletes looking to monetize their NIL.
WWE launched its official NIL program in December 2021 to establish a clear pathway from collegiate athletics to WWE. The inaugural 15-person NIL class, which included athletes from 13 universities, seven NCAA conferences and four sports, joined the program’s first-ever signee, Olympic gold medalist Gable Steveson. The comprehensive program serves to recruit and develop potential future WWE Superstars, and further enhances WWE’s talent development process through collaborative partnerships with college athletes from diverse athletic backgrounds.
“We are excited about the opportunities that this partnership with INFLCR will create as we continue to expand our Next In Line program and identify student-athletes with an interest in becoming WWE Superstars,” said Paul Levesque, WWE EVP, Global Talent Strategy & Development. “The Next In Line program is a unique opportunity that creates a clear pathway into WWE and partnering with INFLCR will help to bolster our efforts and resources in the NIL space.”
INFLCR’s recently-launched Global Exchange product will allow WWE to connect and execute directly with student athletes across a myriad of sports backgrounds. The platform provides all parties a frictionless experience through streamlining communications and processes associated with NIL partnerships within a single ecosystem. “INFLCR’s partnership with WWE opens a new door for the way SAs interact with companies looking to provide monetization opportunities,” said INFLCR Founder Jim Cavale. “The technology offers a seamless experience for both WWE and student athletes in a safe and compliant environment.”
Michigan State SAs to host “Second-Screen Experience” during NCAA Men’s Basketball Tournament
Spartan football athletes Payton Thorne and Jayden Reed will host Campus Cast Live: East Lansing Edition. The current college teammates are longtime friends, having played together on the same high school team as well. Playfly has plans to roll out the concept in multiple markets in the fall for college football season. Future hosts will include male and female athletes from a variety of sports.
The live broadcast has also been of interest to advertisers. Seven sponsor integrations have already been confirmed, including activations from Buick, McDonalds, and multiple East Lansing-area businesses. The social cast will be hosted by Graduate Hotel, a hotel chain centered around college towns with a location in East Lansing.
“Campus Cast Live represents the very best of what NIL can and should be,” said president of Playfly Sports Properties, Christy Hedgpeth. “Not only will student athletes be compensated for their efforts, but more importantly, they will also receive valuable broadcasting experience and career development opportunities. At the same time, this new platform represents highly compelling content with which Playfly can engage college sports fans and deliver value to our brand partners. We are setting the pace for how MMR firms can drive strategic outcomes for school partners through NIL.”
Full story by Kristi Dosh of Forbes / Business of College Sports HERE.
ICYMI Ticker
One month after launching a successful pilot program in the UCF market, McKenzie Milton and his NIL platform Dreamfield Sports are now bringing an assortment of subscriber-based fan experiences to the Florida State community. Dreamfield was founded last summer by Milton and former University of Miami quarterback D'Eriq King, and today they are unveiling Warpath 850, an initiative that will allow fans to take part in a variety of chats and other live activities with FSU SAs.
Arizona Wildcats forward Cate Reese has signed a deal with Newegg, an online technology retail company. Reese took part in a promotional shoot and appears on the homepage of the company's website.
Barstool Sports, the sports blog turned viral social community, is launching a new philanthropy arm called "Barstool Difference," pegged to its existing "Barstool Fund," which raised $41 million during COVID-19 for small businesses. The initiative will have four parts, one to help women-run businesses, one for veterans, one to support youth service and one for sobriety. Barstool has signed more than 140,000 college athletes to its athlete promotion arm since the passage NIL. CEO Erika Nardini says they will play a huge role in this effort.
The University of Denver Division of Athletics and Recreation, in partnership with INFLCR, launched “The Pioneer Exchange.”
Through its partnership with INFLCR, Texas A&M Athletics has launched its AMPLIFY Local Exchange program.
UNC’s Deja Kelly picked up another major endorsement, as she is now one of the three newest members of the “Beats Fam,” which promotes the Beats by Dre brand. She joins Stanford WBB’s Haley Jones and UCLA MBB’s Johnny Juzang.
Meanwhile Bose has signed Gonzaga’s Chet Holmgren, Duke’s Wendell Moore and South Carolina’s Aliyah Boston ahead of the NCAA Tournament. The three will wear Bose QuietComfort 45 noise cancelling headphones.
Excel Sports Management has signed Lauren Betts for NIL Representation. The No. 1 player in the 2022 class is 2022 McDonald’s All-American, 2021 Gatorade Colorado Player of the Year, and is heading to Stanford this Fall.