NIL Newsletter #156 | More on Video Game Boycott, Federal Legislation + Quick Hitters & Top Deals
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Major News:
A Further Discussion on EA Sports Video Game, Possible Boycott
Monday’s discussion of a possible boycott, which can be found HERE, focused primarily on the anticipated $5 Million pool and the responses of student-athletes.
Justin Falcinelli, Vice President of the College Football Players Association, and a former starter at Clemson, supports a boycott, actively encouraging players to take part.
“All current players should boycott this deal. It is an opt-in deal, and they should not opt into it. It is just a ridiculously low amount of money,” Falcinelli said.
Falcinelli compared the payout to that of the Madden video game series, in which NFL players are paid upwards of $30,000 for the use of their likeness.
Worth noting is that NFL rosters only carry 55 players, while NCAA Football rosters regularly carry north of 100 players. Additionally, there are only 32 NFL teams, while there are 131 NCAA FBS teams.
However, On3’s founder and CEO Shannon Terry believes that the payout makes sense for “99.9 percent of the players.”
Read more from student-athletes and experts.
A Close Look at the NCAA’s Federal Legislation Wish-List
Reports emerged last week of the NCAA’s wish-list regarding federal legislation on NIL. Key highlights include:
A uniform national NIL standard to preempt the patchwork of state laws that have been passed or proposed.
At a minimum, limited antitrust protection against legal challenges.
An announcement that student-athletes are not employees of their schools, conferences, or the NCAA.
All three present significant challenges to both the NCAA and the NIL landscape as a whole.
The most recent examples of state NIL legislation—such as Oklahoma, Texas, and New York—have created impediments for the NCAA to adjudicate and enforce NIL infractions committed by universities.
A few of Congress’s members have been vocal about the need for federal NIL legislation:
Senator Tommy Tuberville: “[O]ur universities, our colleges, our athletes, our coaches, administrators and our fans need a lot of help with [NIL] because this is out of control and we cannot sustain this. And if we don't get some kind of control, we will not have the same product on the field.
Senator Lindsey Graham: “You’re going to unleash holy [explitive] on young college athletes if you don’t have a way to control people willing to buy a player to come to a school.”
Proponents of NIL in its current state see no need for federal legislation:
Darren Heitner: “I’m not certain that the majority of college athletes should want to be classified as employees. But I’m confused why athletic programs keep fighting so hard against such a classification, given it would allow them to collectively bargain restrictions on compensation, working for a competitor (i.e. transferring), and even [NIL] activity.”
More on proposed federal legislation is available HERE.
Quick Hitters
Michigan Head Coach Jim Harbaugh hit the road this week to promote Michigan Football’s “M Power” initiative. LINK
The initiative hopes to “assist the next generation of Wolverine football players as they navigate internships, mentorships, entrepreneurship and NIL.”
Harbaugh is expected to talk with donors in-person in Grand Rapids, Chicago, New York, Washington D.C., and Los Angeles.
He will be joined by representatives from two university-endorsed collectives, Champions Circle and Hail Impact.
The Tennessee-focused Spyre Sports Collective is launching an NIL collective trade association. LINK
“This isn’t about us necessarily, it’s about the student-athletes and about the collective voice getting a seat at the table,” said James Clawson, co-founder of Spyre Sports. “We’ve obviously, from day one, hit the ground running with our background and our experience. People are looking for someone to lead this. We were up for the challenge. It’s going to be a collective effort from a lot of different people doing a lot of different things, but we’re happy to get it started.”
The trade association hopes to serve as a voice for student-athletes, provide a forum for collectives to discuss best practices, and provide a unified voice for collectives.
Deals of the Week
Armando Bacot, a basketball player at North Carolina, signed a deal with Frosted Flakes, while simultaneously launching the “Mission Tiger” fundraiser, which raises money for sports equipment for North Carolina middle schools. LINK
Max Moldovan, an Ohio State golfer currently ranked #4 in the Amateur Golf World Rankings, signed a deal with SuperSpeed Golf, a golf training system company. Moldovan will compete at the U.S. Open this weekend. LINK
Paige Bueckers, a basketball player at UConn, signed a deal with Ibotta, a digital rewards platform, in its first-ever female collegiate athlete collaboration. LINK