Shedeur Sanders' Draft Slide, Arkansas NIL Buyout Fight, WIAA Approves High School NIL, Quinn Ewers Leaving $ on the Table & More | NIL Newsletter #323
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This Monday Newsletter Includes:
1. Shedeur Sanders' Draft Slide Exposes NIL Era Risks
2. Arkansas NIL Collective Pushes Legal Boundaries
3. WIAA Approves NIL for High School Athletes
4. Quinn Ewers’ NIL vs NFL Dilemma
5. New Arkansas Law Exempts NIL from State Income Tax
6. Legal Updates and What’s Coming Up for NIL
🏆Major News
Shedeur Sanders' Draft Slide Exposes NIL Era Risks
Now that the draft has concluded and Shedeur Sanders has been drafted by the Cleveland Browns in the fifth round, it begs the question as to whether or not he should have utilized his final year of college eligibility.
His situation highlights the growing risk-reward gap athletes must now navigate between NIL earnings and professional advancement. Sanders’ slide was predicted by some analysts, such as the Ringer’s Todd McShay, but not to the degree we witnessed on draft night. Waiting to hear Sander’s name called until the fifth round was surprising for just about everybody, and many are still questioning whether it was his play that was the problem, or the attention drafting him would cause.
Sanders is expected to make between $4.59 million and $4.65 million as the No. 144 overall pick in the NFL draft, according to estimations from Spotrac and Over the Cap, respectively. This would notch him just above the likes of individuals such as Carson Beck, now at the University of Miami.
It seems obvious now that, barring a meltdown in his play, one more year of college film may have helped Sanders’ draft stock remain in the first three rounds and increase the value of his NFL contract substantially.
Expect future NIL contracts to increasingly include draft insurance clauses based on evolving cases like Shedeur’s.
Arkansas NIL Collective Pushes Legal Boundaries
Arkansas’ NIL collective has formally activated a buyout enforcement clause against Madden Iamaleava amid transfer portal moves. Legal scholars are calling this a "first-of-its-kind" test case for NIL contract enforcement involving high school or transfer athletes.
The collective hired prominent attorney Tom Mars, signaling serious litigation intentions if the buyout isn’t honored. If successful, enforcement could normalize "athlete non-compete" clauses nationally.
Meanwhile, it is important to note that contracts structured with "liquidated damages" tied to athlete loyalty could set dangerous precedents for future NIL disputes.
Sources suggest other collectives nationwide are monitoring the Arkansas situation closely to adjust their templates. Expect the NCAA and state lawmakers to respond swiftly if enforcement leads to public backlash.
Such enforcement could trigger mass NCAA waivers or political interventions, and therefore, collectives nationwide may adopt stricter legal protections if Arkansas succeeds.
📌Other Notable Stories to Follow
Quinn Ewers’ NIL vs NFL Dilemma Raises Alarms – Texas QB Quinn Ewers' decision to enter the draft early, losing significant NIL value, underscores growing risk models for top athletes. 🔗 LINK
New Arkansas Law Exempts NIL from State Income Tax – Gov. Sarah Huckabee Sanders signed legislation exempting NIL earnings from state income tax, making Arkansas a top NIL destination. 🔗 LINK
Legal Experts Slam NCAA's NIL Practices – The New York Post published a scathing critique calling the NCAA’s NIL oversight a "corrupt payola scam," warning of imminent antitrust litigation. 🔗 LINK
NIL Employment Shift Looms – Sports attorney Mit Winter predicts future NIL rules will evolve toward athlete employment models in upcoming legislation. 🔗 LINK
Spotrac Forecasts NIL Contract Transparency Boom – Financial platform Spotrac forecasts that by 2026, NIL deals will become publicly disclosed, similar to pro sports contracts. 🔗 LINK
SI Report: Draft NIL Impacts Growing – Sports Illustrated noted that NIL valuations directly impacted several top players' draft decisions in 2025. 🔗 LINK
📅What’s Coming Up Next for NIL
May 9-11: NBA G League combine
May 11-18: NBA draft combine
July??? Terms of the NCAA v. House settlement were supposed to go into effect July 1 but have been delayed until further notice.
⚖️Legal Updates
WIAA NIL Approval Raises Regulatory Questions
The Wisconsin Interscholastic Athletic Association (WIAA) voted to allow high school athletes to profit from NIL deals. Wisconsin now joins 36 other states in greenlighting NIL at the high school level.
However, the WIAA emphasized that endorsements must not involve alcohol, gambling, or adult entertainment brands.
Some legal analysts predict potential Title IX conflicts emerging as NIL expands downward, while critics argue that income disparities between urban and rural schools may widen due to NIL access.
Wisconsin officials stated the rule change is effective immediately, just in time for summer recruiting showcases.
Anticipate lawsuits by Fall 2025 challenging WIAA NIL implementation rules.
Federal NIL Legislation May Accelerate After Trump Proposal
Trump’s proposed immigration crackdown could reduce the number of NIL-eligible athletes.
Some lawmakers are now pushing for expedited NIL-specific visa classifications.
Advocates warn that reduced international athlete presence could harm NCAA revenues.
Expect immigration-linked NIL policy bills in Congress by Summer 2025.
🗣Hear from Leaders on NIL
“Clemson expects to pay around 80% of its House salary cap (assuming there is one) on football payroll.”
— @WinterSportsLaw
🔗 Tweet“Shedeur Sanders carried a $6.5M NIL valuation according to @On3sports. We're now at the point of the #NFL Draft where a 4-year rookie contract comes with a base value of less than $6M in total.”
— @spotrac
🔗 TweetIowa State QB Rocco Becht used his NIL earnings to donate entertainment consoles to pediatric rooms.
— @SInow
🔗 Tweet
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