NIL Newsletter #158 | More on NIL Adaptations, Unregulated NIL Concerns + Quick Hitters
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More From Monday:
The Reality of NIL Adaptations for Coaches and Staff
While some college coaches are fighting the NIL changes that their programs are facing and calling for increased regulations for NIL, others like UA Barnes suggests simply adapting to the new world. (as discussed here)
The major area of concern for many coaches is the transfer portal, however, this enemy may be more self-made than the coaches realize.
According to Charlie Baker, the high rate of athletes entering the transfer portal stems from pandemic recruitment.
For nearly three years, recruits were only allowed to take virtual or abbreviated tours to the colleges, therefore, the relationships they built with coaches and the colleges were across a screen.
While college coaches obviously had no control over the pandemic and lockdowns, they did have a responsibility to accurately present the school and team’s cultures and values to the athletes they were recruiting.
Link to a longer discussion HERE
All of this is not to say that the transfer portal has not created issues for college coaches and staff.
For event promoters, the caliber of a team impacts the attractiveness of the potential event which in turn impacts everything from ticket prices to TV streaming interest. However, college coaches and event promoters now have a difficult time discerning in the spring whether the teams will be finalists or middle of the pack until after the transfer portal settles down.
For coaches, such as Alabama’s Nick Saban, there seems to be a lack of commitment from players, making it hard to build a sense of purpose on the team.
That said, there has not been much progress in the way of reconciling this. While coaches have approached Congress for help, there has still been little in the way of regulations to help with the influx of players to the transfer portal.
So although a blunt sentiment, Adia Barnes approach to the transfer portal seems to be the only option for coaches at the moment. It may not be preferable, but coaches will have to learn to adapt and accept the transfer portal for what it is if they want to be successful.
Concerns About Unregulated Fundraising and NIL collectives
Last week, Utah’s Crimson Collective named Kyle Brennan as the new CEO of the University’s first endorsed NIL collective. This announcement raises concerns as Brennan abruptly resigned as AD of Illinois State after reports of misused funds during a donor trip in 2021.
This is not the first time concerns have been raised about improper NIL use, however. In 2022 a LEAD1 Survey revealed 90% of FBS athletic directors were concerned about NIL use as an improper recruiting tool.
The concern revolves around NIL payments being used as inducements for recruits, but also stems from the concern for traditional fundraising. 78% of AD’s believe that NIL collectives will lead to a reduction of participation opportunities and allocation for student-athletes.
77% also agree that an unregulated NIL market will lead to increased scandals
The unregulated nature of NIL means that there are essentially no rules right now as to how these colleges can use their NIL power. Not only will this create issues for how some colleges are gaining financial traction, but will also skew the playing field in a way that makes it hard for schools to compete against each other for top recruits.
For example University of Texas brought in $239.2 million in revenue, compared to the top SEC school by nearly $25 million in 2022. With spending like that, there is no way some schools will be able to even remotely compete for, and or keep, athletes with their programs. link
While UA Adia Barnes advice to adapt may be true for NIL issues such as the transfer portal, it will be hard for coaches to adapt when they can no longer keep players on a roster because of other NIL deals.
Quick Hitters:
Former Oklahoma defensive lineman Derrick LeBlanc announced his transfer to UCF on Monday. link
Mississippi State wide receiver Rufus Harvey has entered the transfer portal. link
John Calipari of the University of Kentucky established a new fundraising effort called ‘the Lafamilia Club.’
It’s a NIL collective, but Calipari decided that he doesn’t want to do “collectives,” so they aren’t calling it a collective, but rather a club.
The intention is to re-establish the program’s gold standard in the sport. link
The Brandr Group is now suing EA for not including them in negotiations for athletes’ NIL payments to participate in the EA College Football video game. link