NIL Newsletter #102 | Nevada state NIL recommendations, Kentucky HC Mark Stoops, Purdue's NIL collective vs. athletics fund + ICYMI Ticker, Tweets of the Week AND Summer Schedule
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:
Nevada committee recommends changes to NIL disclosure process
When Nevada Gov. Steve Sisolak signed into law Assembly Bill 254 in May 2021, the law approved the creation of the Committee to Conduct an Interim Study Concerning the Use of the Name, Image and Likeness of a Student Athlete. The state-appointed committee was tasked with studying state laws and athletic association bylaws in order to make recommendations for future legislation.
Later this month, the Committee on Education will receive the NIL committee’s final report and recommendations. The Committee on Education could introduce those recommendations as legislation for the 82nd Session of the Nevada Legislature, which begins Feb. 6, 2023. The NIL committee’s final meeting on June 23 showed the potential challenges of well-intentioned recommendations that are crafted in part by college athletics outsiders.
Under Assembly Bill 254, athletes in Nevada must disclose to their institution any NIL contracts they sign. High school recruits must do the same with any previous or existing NIL contracts before they sign their National Letter of Intent. However, a work session document prepared for the latest NIL committee meeting recommended legislation that would require that third-party entities be held responsible for disclosing NIL deals to institutions. The institution would then have to report NIL activities to the Nevada System of Higher Education (NSHE).
UNLV Deputy Athletics Director, Chief Operating Officer Eric Nepomuceno motioned that the NIL committee recommend the disclosure to NSHE of any NIL activity worth at least $10,000, or an amount decided upon by the Committee on Education.
The NIL committee’s ultimate recommendations regarding NIL disclosure is for third parties, rather than athletes, to disclose NIL activities valued at $10,000 or more to institutions — unless the Committee on Education decides another amount is appropriate. The NIL committee recommends that the Committee on Education determine the appropriate method to gather NIL transaction data in a centralized location. Full story from On3 HERE.
Kentucky’s Mark Stoops gives boosters green light in request for NIL funds
Kentucky Football HC Mark Stoops cleared up some misconceptions about NIL, put out a call to action and shared the current state of the Kentucky football program’s NIL efforts. “Blaming nobody, are we where we need to be? No. Simple answer: No,” he said.
Without naming names, Stoops was candid about how Kentucky has fallen behind some of their competitors in the SEC and beyond. “I’m playing against players that I know were given money, that the school and the NCAA know were given money, and we’re still playing against them; under the table, not even above board like it is now. I mean, paying them up on top of the table, you’re allowed to do that now, but I’m talking about under the table. And so if they can’t police it where you’re giving people money under the table, how in the world are they going to police it when you’re giving it on top of the table?”
Instead of ‘collective,’ Stoops wants business owners and boosters to know they can contribute to a pool of money that is marked as ‘pre-funded endorsement marketing dollars.’ The Average Joe fan can support UK players with NIL efforts, like buying a Will Levis t-shirt from Kentucky Branded. Business owners can contribute similarly.
“Essentially, we need people to understand that it is legal and it is okay…” Stoops said. “… I have so much respect for our boosters and people that have earned their money the right way that I don’t want to put a dark cloud over them because they’re trying to buy players. But they need to understand that it is legal. They are allowed to do this. This is the world that we’re in right now.”
“I’ve kind of poked around it and different media sessions and things of that nature, but we do need people to step up. They do need to understand - this is the second time I’ve gone on record saying that - it is legal for them to step up and pay some of the people in town here, or I should say, pay out an expense from their business. You can set aside future marketing deals to a fund, to a ledger to people to put that aside and use that in the future for marketing.”
“We are behind,” Stoops reiterated at the end of the interview. “I’ll step up and say that yes, we are behind and yes, we need money. And we need to set aside pre-marketing dollars for the future of the football program and all of our sports.”
Purdue AD Mike Bobinski has concerns about NIL collective co-existing with general athletics fund
For the first time, Purdue’s athletic department was able to cover the scholarship costs ($12.1 million) for its more than 450 athletes during the 2021-22 academic year. The funds are raised directly through the John Purdue Club and the athletic department receives no financial help from the university for this cost or other expenses. With NIL beginning its second year and the Boilermaker Alliance, a collective on behalf of Purdue, ready to launch, will the worlds of the John Purdue Club and NIL collide at some point?
“Do I worry about it? Yes, there’s always a concern,” Bobinski told the Journal & Courier. “S it's become clear that we’re heading in this collective direction, we've delivered the message: ‘Hey, our existing priorities continue to be existing priorities and necessities.’”
“This is an emerging priority that’s sort of a new initiative; new initiatives pop up all the time. We have a new capital project, we have a new this, and we have a new that. That doesn’t lessen our need to fund our annual scholarship bill, it doesn’t lessen the need to fund capital projects around our enterprise.”
Purdue is about to embark on a big capital project following the 2022 football season. Phase 1 of the Ross-Ade Stadium renovation will get underway by adding a new team/tunnel entrance from the Kozuch Football Performance Complex to Rohrman Field, converting the existing team store into an athlete nutrition/dining facility and constructing a concourse connector adjoining additional seating in the south end zone. The estimated cost is $45.4 million, and the $15 million gift from the Bob Rohrman Family, announced in 2019, will help fund the renovation project. More funds have been raised for Phase 1 to move forward. It’s the same with the men’s and women’s basketball locker room renovations. The funds for the $6.7 million project, which will begin after the 2022-23 seasons, are already in place.
“I know some have suggested that we’re behind [on NIL], but I don’t feel that way because I want to do it the right way and do something that would be sustainable,” Iowa AD Gary Barta said during a news conference Friday. “Some of the things that are going on are one, either borderline or flat-out against the rules, or two, I just don’t know how they are sustainable.” He said he is less familiar with another group that launched last week, the Iowa City NIL Club that will benefit Iowa football players. “I think it’s a group that’s trying this nationally. I think they have a concept and they’re trying to plug it in in schools around the country,” Barta said, referencing similarly structured groups at Minnesota and Michigan State. “I don’t know exactly who that it is, but my understanding is that fans can pay $199 a year and then the student-athletes that want to participate will provide access. That to me sounds like name, image and likeness.”
Great story from ESPN on SMU S Ra'Sun Kazadi, a gifted artist who is benefiting one year later from new NIL policies. “I'm able to do more of the work that I want to do because of NIL. I can sell my pieces for more, and therefore, I don't have to do, like, 100 pieces a month.”
FanJolt, a new experiential platform that creates memorable interactions between fans and a curated list of premier talent, has entered the NIL market with multiple collective partnerships, including Cavalier Futures (UVA), Garnet Trust (South Carolina), Think NIL (TCU) and The Foundation (Ohio State). These new partnerships will create opportunities on the platform and through the FanJolt app for student athletes to connect directly with fans through live broadcasts, personalized messages, recorded videos and more for a fee to earn revenue from their NIL and support their favorite causes. More HERE.
On3 now has an NIL Deal Tracker - more HERE.
Miami (FL) has launched Miami Marketplace in partnership with
Opendorse. The Marketplace is a streamlined platform for brands and supporters to easily find & pitch NIL activities to Miami SAs.
Interesting story from On3 about 2022 NCAA Division I Outdoor Track & Field Championships runner Emily Cole (Duke) on NIL deals with supplements, which she describes as, “pretty high risk for not a lot of payout.” Cole, who was diagnosed with Celiac Disease in November, also discussed how she had to work around activations with NIL partners Doordash and Wendy’s because she could not eat the food. More HERE.
Tweets of the Week
OSC Summer Schedule
OSC will be taking our first-ever vacation in mid-July. Following the Monday, August 18th NIL Newsletter, we will be off for 2 weeks, and return to your inboxes on Monday, August 1st. Thus, there won’t be any normally scheduled newsletters on the 21st (Thursday), 25th (Monday) and 28th (Thursday).
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