NIL Company Accused of Predatory Practices, Arkansas' Unique NIL Funding, and More | Newsletter #279
NIL Company Accused of Predatory Practices, Arkansas' Unique NIL Funding, and More | Newsletter #279
Welcome to the NIL Newsletter by Optimum Sports Consulting - providing valuable, actionable NIL resources for athletes, administrators, agencies and other sport professionals.
Today’s newsletter includes updates on NIL platforms, legal updates, and news for student-athletes and administrators.
Keep up to date on all of our newsletters and content by checking out past Optimum Sports Consulting Newsletters, and following us on Twitter!
This Monday Newsletter includes:
1. Nilly accused of predatory practices
2. Arkansas’ unique approach to NIL funding
3. What’s coming up in the world of NIL
4. Legal Updates: Pennsylvania Senate approves resolution
5. News/tips for administrators and student athletes
Major News
NIL Company, Nilly, Accused of Predatory Practices
Nilly, an NIL company co-founded by former NBA player Kendrick Perkins, is facing scrutiny after an investigative report revealed that the company used predatory tactics akin to offering high-interest loans.
Nilly offers athletes upfront payments in return for the use of, or sale of, an athlete's NIL for up to seven years.
Agreements can vary both in terms of what athletes are offered up front and for how long Nilly gets exclusive NIL rights. They are offered as guaranteed money but give Nilly and its investors huge cuts of money, up to 50%.
Consumer protection and finance experts worry that the structure and length of agreements with Nilly could be aimed specifically at preying on younger athletes and taking advantage of their situations, specifically citing seven years of licensing NIL rights as unusually long.
Nilly is not obligated to help its athletes fulfill any endorsement deals. That job is outsourced to the athletes themselves or to their agents. Agents typically only receive a single digit percent of their client’s negotiated earnings, much lower than the 25-50% that Nilly stands to make from its clients.
CLICK HERE to learn more.
How Arkansas Raised $1 million for its Collective
On October 2, the University of Arkansas posted a video of their basketball court indicating it was getting a touch-up. Without delay, fans quickly rushed to the comments to plead for the return of their iconic Slobbering Hog logo.
The athletic department had just received a $500,000 donation. Athletic Director Hunter Yuracheck informed his fan base that they would reinstate the famous logo if they received an additional $500,000 in NIL donations.
Within a week, the donation was matched. Arkansas has raised enough funds to acquire one of the top players in the transfer portal and add depth to the roster.
Collectives have complained about donor fatigue as they cannot promise donors any actual performance boost. Here, Arkansas used their nostalgic logo as a motivator for donors.
CLICK HERE to learn more.
Other Notable Stories to Follow
Former Duke head coach Mike Krzyzewski weighs in on NIL - LINK
UConn All-America Paige Bueckers led the way as the top-selling female athlete for September for Campus Ink’s NIL Store - LINK
Texas football players have made over $6 million since June - LINK
What’s Coming Up Next For NIL
Coming Weeks | Judge Wilken’s House Settlement Decision
Next Month | Big Ten-SEC Meeting
Legal Updates
Pennsylvania Senate Approves Resolution Urging Fairness and Uniformity in NIL Deals
The Pennsylvania Senate urged Congress and the NCAA to create a standard set of NIL policies to better protect student-athletes.
On October 9, the Pennsylvania Senate adopted a resolution authored by Senator Martin calling for Congress and the NCAA to work collaboratively to ensure NIL policies nationwide have uniformity, fairness, transparency and oversight.
“Whether it’s Congress or the NCAA, if all the states aren’t playing by the same rules, we’ll continue to have to play whack-a-mole and react to whatever other states do to push the envelope on this issue, in order to maintain ‘recruiting competitiveness,’” Senator Martin said. “That definitely isn’t an even playing field and is not good for the long-term health of college athletics across this country.”
CLICK HERE to learn more.
Optimum Sports Consulting is here to help.
For athletes looking for NIL insight and advisement, administrators and collectives looking for resources and facilitating a best-in class process, or agents looking to navigate the changing landscape, we’re here to help!
Message us now for a free consultation.
FOR ATHLETES
Notes for the Week
Multiple student-athletes at Western Kentucky University signed NIL contracts with Outback Steakhouse - LINK
USC guard JuJu Watkins becomes Gatorade’s third NIL signing - LINK
Missouri wide receiver Luther Burden III signs NIL deal with Kane Footwear - LINK
Tip of the Week: Educate yourself on all aspects of NIL.
As a student-athlete, it's important to understand NIL rules and how they can benefit you. Take the time to research potential opportunities for endorsements, sponsorships, and partnerships that align with your personal brand and values. Remember to consult with your school's compliance office to ensure you are following all rules and regulations. By leveraging your NIL rights effectively, you can create new opportunities for yourself both on and off the field.
FOR ADMINS
Notes for the Week
Tulane’s athletic director wrote a passionate plea asking for fans to support the program’s Collective - LINK
ASU football head coach encouraged those who won bets on their recent game to put the money back into the Collective - LINK
Gonzaga unveils new NIL platform for their student-athletes - LINK
Tip of the Week: Get creative with how you raise NIL funds.
Get creative with how you raise NIL funds by exploring new platforms, partnerships, and incentives to engage fans and encourage support for student-athletes. Thinking outside the box can help generate additional revenue and opportunities for your program. Each large contribution can make a difference in the talent you can sign.
Thanks for Reading!
Keep up to date on all of our newsletters and content by checking out past Optimum Sports Consulting Newsletters, and following us on Twitter!