Texas' NIL Budget, Shaq's GM Role, Crowdfunding Meets NIL, & ICYMI | Newsletter #324
Today’s Thursday newsletter includes highlights from this week, important news from last week, and what to watch for.
Recapping Major News This Week:
Texas Football’s NIL Budget Balloons to $35-40 Million
Texas AD Chris Del Conte confirmed the Longhorns’ 2025 football roster will cost $35-$40 million, roughly double Ohio State’s much-debated $20 million outlay last year.
How It Breaks Down:
~$20.5M of future House-era revenue-share already earmarked.
$15-$19M supplied by Texas One Fund and independent donors.
Arch Manning remains “by far” the highest-paid player, but all of his NIL money is third-party, none from the school.
Legal Takeaways
House Settlement Stress Test: Texas is effectively piloting life under the proposed $20.5 M cap plus booster dollars. If Judge Wilken trims roster limits but keeps the cap intact, donors become the growth engine, raising questions about competitive balance and Title IX equity.
Collective Phase-Out: Del Conte called 2025 a “one-time exorbitant expense” as UT plans to sunset traditional collectives once direct pay is permitted, signaling how Power Four schools may internalize NIL operations post-House.
Locker-Room Disparity Risk: UT declined to reveal the number of $1 M earners to avoid “locker-room chaos.” Expect the NCAA/Deloitte integrity unit to watch for undisclosed inducements or unequal treatment that could spark intra-team claims.
CLICK HERE to learn more.
Shaquille O’Neal Becomes General Manager at Sacramento State
Shaq steps in to lead men’s basketball operations; hire follows Hornets’ splashy addition of coach Mike Bibby.
Industry Significance
Celebrity-Driven Fundraising: Aligns with Steph Curry (Davidson), Trae Young (Oklahoma) & Maxx Crosby (EMU) as pro stars assume “front-office” titles to unlock sponsorship and NIL dollars.
Governance Questions: Shaq will influence roster-construction, endorsements, and budget allocations without an institutional employment contract, inviting NCAA inquiries on de facto booster status and recruiting inducement rules.
Mid-Major Arms Race: Seven-figure NIL pools for Big Sky programs could widen the gap between resourced and non-resourced low-majors, spurring conference-realignment jockeying.
NIL War Chest: Local donors claim $35M pledged—could reach $50M if Sac State secures a future Pac-12 football invite.
CLICK HERE to learn more
Quick Hitter News:
Pac-12 Locks CBS, ESPN & The CW for 2025 Home Games – Short-term deal boosts exposure for Oregon State/WSU while the league hunts long-term partners; signals conference-media appetite even at two-team scale. – LINK
Quinn Ewers’ 7-Round Slide Spurs NIL-vs-Draft Debate – The ex-Texas QB left $4-5 M in projected NIL cash to enter the draft and fell to pick 231 (Miami). Agents predict more QBs will now take guaranteed college money. – LINK
Belichick Emails Show Girlfriend Advising UNC on Optics & Social Media – Raises fresh conflict-of-interest and volunteer-staff compliance questions under UNC employment policy. – LINK
Marshall AD Christian Spears to Depart in 2026 – Search begins amid conference-realignment jockeying; timing could influence football scheduling and NIL fundraising strategy. – LINK
WME Sports will divest WME Basketball - LINK
ICYMI
From the Sidelines to the Front Office
A new front office model is emerging in college athletics. Former athletes are returning to their alma maters (or to the college landscape in general, such as Shaq as mentioned above) in newly created roles as General Managers or Assistant GMs. These positions, once unthinkable at the collegiate level, are now influencing NIL strategy, recruiting, fundraising, and brand development. While the hires of Andrew Luck (Stanford), Maxx Crosby (Eastern Michigan), Trae Young (Oklahoma), Steph Curry (Davidson), and Terance Mann (Florida State) reflect a powerful trend, they also introduce significant legal considerations.
As this practice becomes more common, universities must confront legal and structural questions about how these roles are defined, compensated, and regulated.
CLICK HERE to read the previous full Friday Feature, or HERE to access the source material.
What To Watch For: Crowdfunding and NIL
Fanstake Raises $6.25M to “Crowd-Fund NIL Free Agency”
VC heavyweights Courtside Ventures and Will Ventures headline a $6.25 million raise for Fanstake, a platform that lets fans pledge NIL money to steer athletes toward (or keep them at) specific schools.
How It Works:
Users post conditional offers (e.g., “$500 if QB Smith transfers to Auburn”).
If the athlete chooses the school, Fanstake pays; if not, funds revert to users as site credit.
18,000 users have floated $ 500K+ to date; Louisville backers pledged $88K to four-star hoop recruit Nate Ament.
Legal / Compliance Lens:
Inducement vs. Expression: Fanstake calls the pledges “offers,” but under current NCAA rules, any school-specific consideration is presumptively a recruiting inducement. The platform’s success may accelerate calls for a true free-agency model in final House negotiations.
Money-Transmitter & Gambling Law: Pooling fan funds triggers FinCEN and money-service-business scrutiny; counsel will need robust KYC/AML procedures.
Broker/Agent Registration: By matching athletes and consideration, Fanstake may fit the definition of an athlete agent in many states, requiring registration and surety bonds. Expect state AGs to review the model this summer.
Collective Killer or Complement? Schools could view Fanstake as a compliant way to “democratize” donor bases once revenue-share funds squeeze traditional collectives.
CLICK HERE to learn more.
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