NIL Newsletter # 151 | Close Look at Federal NIL Bill, They're in the Game, + 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:
Senator Lindsey Graham Drafts “College Sports NIL Clearinghouse Act”
This Friday, news of new Federal legislation on NIL came to light, as On3 received a copy of a recent draft from the office of Senator Graham.
The draft, titled the “College Sports NIL Clearinghouse Act of 2023,” would create a new division with oversight of all NIL activity. The clearinghouse would have the power to fine anyone, sue anyone, and ban anyone from participating in collegiate athletics.
“The NIL Clearinghouse shall carry out enforcement actions for any violation of this Act, including by levying fines, imposing penalties, including suspension or a permanent ban of an individual or entity from participation in varsity intercollegiate sports competition for a period determined by the NIL Clearinghouse and commencing civil actions and seeking all appropriate legal, equitable, or other relief, including damages and injunctions.”
The stated purpose of the new oversight entity is to monitor compliance, establish and enforce penalties, and provide educational information to athletes.
It is interesting that the proposal for this new entity comes shortly after many states have passed NIL law amendments protecting their universities from NCAA punishment.
The drafted legislation also prohibits institutions from limiting playing time or changing scholarships as retaliation for an NIL deal, but gives those institutions the authority to prohibit athletes from entering into agreements that would violate state law or the student conduct code.
The NIL clearinghouse would be given an antitrust exemption, something that the NCAA itself has long sought and never successfully obtained.
Finally, according to the bill, there would be nothing limiting the ability of an “institution, conference or athletic association to prohibit a third-party from providing a student-athlete” with a recruiting inducement or compensation for participating in a sport — in what seems like a clear stab at collectives.
The drafted bill itself is available HERE.
EA Sports Confirms New Game Will Include Player Likenesses
On Wednesday, ESPN confirmed that, 10 years after the last version, EA Sports would be launching a college football video game, and this time, would be featuring virtual likenesses.
EA Sports contracted with OneTeam Partners to “facilitate collegiate athletes’ names and likenesses” into the game. All eligible FBS players will have the opportunity to opt in to have their likenesses included in the game.
According to other reports, the total pool for players will be around $5 million dollars, with ~ $500 going to each player who agrees to be in the game.
For perspective, EA Sports’ last NCAA Football game sold over 1 million copies, grossing the company around $60 million.
Many star players may attempt to hold out for more money, but may be able to sign separate endorsement deals with EA to promote the game, in lieu of receiving more for their likeness.
Opendorse, which was in the bidding process to be EA Sports’ group licensor, may still play a role in distributing the funds to student-athletes, as Opendorse previously worked with EA Sports through the Madden video game series.
Following the agreement between EA and OneTeam, Wisconsin, Northwestern, TCU, Fresno State, and Tulane announced that they would opt in to the game. Notre Dame remains a holdout at this point.
More information is available HERE.
ICYMI Ticker
Rainbow Collective became the newest Hawai’i-focused NIL collective. LINK
Former ASU student-athlete Grant House explains that he was inspired to join the antitrust suit against the NCAA after noticing music students at ASU receive money to play at Carnegie Hall. LINK
Lamont Butler, Jr., who has entered the NBA Draft but not the transfer portal, received NIL offers of up to $1 million to transfer. LINK
The Texas Tech-focused Matador Club will sign all TTU Baseball athletes to five-figure deals. LINK
Two more collectives have created beers in coordination with breweries, following Boise State’s lead. Iowa (LINK) and Cincinnati (LINK).
The 1957 Club launched to support Stony Brook student-athletes. LINK
New York introduced a bill amending state NIL law, which expressly prohibits the NCAA from investigating or taking adverse action against a college for engaging in any NIL activity. LINK
California Assembly Bill 252, which would grant student-athletes revenue-sharing rights, will head to the floor for a vote no later than June 2. LINK
Montana’s bill allowing schools to serve as agents for NIL deals will come into effect on June 1, 2023. LINK
Toledo partnered with Campus Ink to officially license merchandise for student-athletes. LINK