NIL Newsletter #111 | NCAA's NIL letter, New brief in Johnson case, CJ Stroud comments on Big Ten media deal + 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(end):
Letter from NCAA to member schools asks for additional assistance in NIL infractions cases
Stan Wilcox (Executive Vice President of Regulatory Affairs) and Jon Duncan (Vice President of Enforcement) of the NCAA sent a letter to member schools this week asking for assistance with NIL inquiries.
“The interim policy maintains expectations that NCAA members adhere to key principles of college athletics and abide by rules regarding inducements, benefits, contacts, recruiting, etc. Protecting the environment starts with member schools following self-regulating requirements. To achieve success and protect fair competition from abuses, member cooperation and communication with the NCAA enforcement staff is imperative when self-regulating requirements fail.”
“Investigations can be challenging and the enforcement staff needs help from member schools. Specific information about contacts or transactions will expedite investigations and help us secure truthful accounts. We understand why coaches and student athletes are reluctant to provide documentary evidence and details on the record, but it's critically important in our effort to protect compliant programs. Candidly, we need these materials because too many NIL arrangements are not made in the sunshine and getting accurate information is difficult. Individuals should contact the enforcement staff directly and any information can be provided anonymously.”
“As always, much of enforcement's work is known only to parties involved in a confidential investigation. We conduct most of our business with schools, conferences and others without public visibility. We also recognize the need for transparency and action, so we operate every day with genuine urgency on behalf of the Association. We're balancing that charge with the need to respect the interests of individual schools and safeguards in the infractions process. That balance helps us separate substantiated reports from widely-publicized rumors that our investigations demonstrate are not true.”
Full letter can be viewed HERE.
NCAA files brief in Johnson v. NCAA
On the same day the Big Ten announced a seven-year, $7 billion deal to televise games played by college athletes, attorneys for the NCAA filed a brief citing cases involving dog groomers, exotic dancers and aspiring cosmetologists to insist that college athletes aren’t employees.
The brief is the latest development in Johnson v. NCAA, wherein current and former college athletes argue that students playing college sports ought to be classified as employees under the Fair Labor Standards Act (FLSA). FLSA classification would mean that college athletes are treated like their non-athlete, work-study classmates—some of whom, like athletes, have scholarships and are paid to work around campus, at places such as the library, dining hall, or the ticket counter or concession stand at games.
As FLSA employees, college athletes would be owed minimum wage and related benefits but would not be able to unionize (absent other legal developments). Johnson is currently before the U.S. Court of Appeals for the Third Circuit after Judge John Padova denied the NCAA’s motion to dismiss last fall.
Much of the NCAA’s 53-page brief urges the Third Circuit to carefully consider Berger v. NCAA. In 2016, the Seventh Circuit held that college athletes aren’t employees under the FLSA. The Third Circuit, as a different federal court of appeals, isn’t obligated to reach the same decision. However, the NCAA contends the Seventh Circuit correctly reasoned that playing college sports doesn’t constitute “work” in the employment sense.
Attorney Paul McDonald, who is litigating on behalf of the players in Johnson, contends the NCAA’s brief is both inaccurate and disingenuous—and that it won’t persuade the Third Circuit. “The NCAA,” he told Sportico in an emailed statement, “made the same false assertion that Vanskike v. Peters, and its 13th Amendment ‘slavery loophole’ holding, are regularly applied outside the prison labor context in briefing before Judge Baylson in Livers v. NCAA, and before Judge Padova in this case. Based upon a thorough dissection of cases mis-cited by the NCAA, both those Senior District Court Judges flatly rejected the NCAA’s mischaracterizations. Vanskike v. Peters says what it says. It is disturbing that the NCAA repeatedly attempts to mislead courts to mis-apply it to Student Athletes.”
Full story by Michael McCann from Sportico HERE.
Ohio State QB CJ Stroud says new Big Ten media deal should be shared
With the Big Ten inking an unprecedented television contract with FOX, NBC, CBS and definitely not ESPN, Ohio State football star quarterback C.J. Stroud believes the players should see some of that revenue from the growing pie. Stroud was a Heisman Trophy finalist last year and could be the No. 1 overall pick in the 2023 NFL Draft should he decide to go pro after his redshirt sophomore season.
“I definitely think it should be shared,” Stroud told the Columbus Dispatch, “but if not, at the end of the day, we have the NIL space. We can do it that way. The new college world is turning around, and I’m here for it.”
“This game is amazing, especially the college atmosphere, because it does have amateurism to it,” continued Stroud. “That’s definitely a plus. But at the same time, I’m not 100 percent sure what our tuition is, but I’m sure it’s not the worth of what we’re actually worth. My mom has always told me to know my worth.”
Ultimately, the college football world will look vastly different once the current TV deal the College Football Playoff has with ESPN expires after the 2025 season. This will allow other television partners to bid on games, as well as expand the playoff field well beyond the four-team format currently.
ICYMI Ticker
He has a famous last name and an interesting first name. Now Oklahoma quarterback General Booty is using that name — and his image and likeness — to do good. Booty, a junior college transfer this season from Tyler, TX, announced this week he’ll be donating 20 percent of his NIL revenue to the Oklahoma Children’s Hospital.
Illinois defensive tackle Bryce Barnes announced an NIL deal with Gibson Area Hospital on Instagram. In his post, Barnes said, “From the GCMS Falcons to Fighting Illini Football. Gibson Area Hospital Orthopedics and Sports Medicine in collaboration with Dr. Tim Leonard of Gibson Elite Sport & Fitness has prepared me to be ready to take the field at Memorial Stadium!”
On Thursday, the Detroit Sports Commission (DSC) announced “Brand Ambassador” agreements with five NCAA student athletes for the 17th Xenith Prep Kickoff Classic. The five ambassadors are Ohio State DB Cameron Martinez (Muskegon), Central Michigan RB Lew Nichols (Cass Tech), Toledo QB DeQuann Finn (Detroit King), Michigan State WR Antonio Gates Jr. (Dearborn Fordson) and Kentucky LB DeAndre Square (Cass Tech).
“We have to get ahead of (pay-for-play),” a P5 AD recently told Saturday Down South. “We didn’t with NIL, and now we’re all kind of scrambling to make it fit universally. There has to be a clear path this time (with pay-for-play).”
A scan of the On3 NIL collectives database, which includes for-profit and nonprofit organizations, plus school-specific marketing agencies and membership-based communities, shows that at least 32 Division I schools are supported by multiple NIL-focused groups. “It can get pretty hairy pretty fast,” said Rob Sine, a partner at Blueprint Sports, which powers NIL collectives for fan and donor bases and the business communities that support schools including Arizona, Gonzaga, UNLV and Tennessee. “Not where we are, but I’ve seen some examples around the country where it turns into a contest, and you know who loses? The student athletes and the fan base because they don’t know what the heck’s going on. And there’s no referee.”
The Texas Longhorns have named Quinn Ewers, the heralded recruit who began his college career early at Ohio State to capitalize on NIL opportunities before transferring back to his home state, as their QB1.
Middle Tennessee, in conjunction with INFLCR, has launched the the Blue Raider Exchange.
Georgia Southern announced its enhanced partnership with Opendorse with the creation of GATA Spotlight.
Florida is partnering with CAMPUS for fan engagement & NIL solutions.
Lindenwood (MO) is partnering with Icon Source.
Colorado College is partnering with Opendorse.