NIL Newsletter #134 | Rashada Saga, California Bill, Title IX, + ICYMI
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:
Jaden Rashada’s NIL Journey Continues
This week brought more twists and turns in the dramatic recruiting saga of Jaden Rashada, a top-10 quarterback in the 2023 class. The Florida-based quarterback has been the center of much discussion for months, which began with his commitment to Miami(FL).
When he initially committed to Miami, there were unconfirmed reports of a $9.5 million dollar NIL deal from Miami booster John Ruiz. His commitment to Miami lasted six months, before immediately flipping his commitment to Florida.
He signed his binding National Letter of Intent a month later, and rumors again began circulating around yet another massive NIL deal. This time, the rumored deal reached $13 million dollars.
This past week, Rashada requested and was granted a release from his letter of intent, after it became clear that the money offered would not materialize. Although the collective offering the money to Rashada is independent of the University of Florida, it is clear that there is a pay-for-play element at hand.
Where Rashada will end up remains unclear, but this is a clear warning of the inconsistencies and great unknowns of NIL deals.
More on the story is available HERE.
California Representative Introduces Revenue-Sharing Bill
This week, California legislator Chris Holden introduced the College Athlete Protection Act, which requires that state’s colleges and universities share a percentage of revenue with athletes participating in football and men’s and women’s basketball. Payment amounts are based on the revenue earned by the programs.
The bill has a few key stipulations:
A portion of pay is dependent upon graduation
Athletes are not employees of the University they attend
Schools must provide medical care and scholarships after a student’s eligibility expires
Athletic Directors may be suspended for at least three years if they reduce roster spots, cut scholarship amounts, or eliminate sports programs
The bill has strong support from the National College Players Association, and caps the annual payments at $25,000 per athlete.
NIL, for all its positive effects on collegiate athletics, is, at its worst, nothing more than a legalized form of pay-for-play. This bill is a codified example of a push towards professional standards in collegiate athletics. What that will ultimately look like remains unclear.
More information on the proposed bill is available HERE.
The Drake Group Seeks Gender Equality in NIL
The Drake Group, a college sports reform organization, sent a letter to the U.S. Department of Education’s Office of Civil Rights (OCR), asking for them to help improve gender inequalities in NIL.
According to current reports from Opendorse, NIL collectives are not consistently offering opportunities to women’s sports. Only 34% of collectives currently offer deals to athletes on women’s collegiate programs.
“We do not write to suggest that OCR stem this flow of cash to college athletes, but rather to alert OCR that this cash is, with the blessing and/or cooperation of the 1000+ universities in the NCAA, flowing predominantly to men,” the letter said.
The Drake Group is suggesting that the DOE confirm that Title IX applies to NIL deals. As of now, it is unclear how they will apply, as collectives are, and must remain, independent of Universities.
Former Indiana Association General Counsel Richard Nussbaum shared his thoughts: “That’s why there’s a separation, an arm’s length, between what the department can do and what [collectives] can do. As long as they’re doing it, we don’t have Title IX issues.”
More information is available HERE.
ICYMI Ticker
Recently retired Cornell Athletic Director Andy Noel was more than candid when discussing his thoughts on NIL: “Nationwide, I think the NIL situation has been an absolute disaster. Programs can now within the rules buy a team. And I hope the pendulum swings back – I think it will – but it’s an absolute disaster. I could reel off many cases where athletes have been purchased under the guise of NIL and what they bring with their name, image and likeness, which in most cases is zero, but they still get paid hundreds of thousands of dollars.” LINK
Current Alabama Executive Deputy AD Shane Lyons discussed his departure from West Virginia. He cited a disagreement with the University president over the Athletic Department’s interaction with the Country Roads Trust as a major factor. LINK
The Tennessee-focused Volunteer Club collective dropped its membership goal from 10,000 to 5,000 ahead of March Madness. LINK
A hearing for Johnson v. NCAA has been postponed until February 15th. The lawsuit focuses on the compensation of student-athletes as employees. LINK
Arizona State expanded their partnership with Altius Sports to include a full-time, on-campus NIL general manager. LINK