Unless you don't follow college sports you know the term NIL, if you don't it stands for Name Image, and Likeness. It applies to the ability of college student-athletes to get paid essentially by the schools they attend and play for.
to understand where we are let's look at how we got here.
It wasn't until 1956 that the NCAA allowed schools to provide scholarships for athletes.
In 1975 they limited scholarships to only tuition, books, room, and board.
In 1984 however, the U.S. Supreme Court declared in a 7-2 ruling that the NCAA violated the Sherman and Clayton Anti-Trust Acts. because at that time only the NCAA could negotiate TV contracts. So this gave member schools and conferences the right to negotiate TV contracts and agreements separately.
Then in 2009, a group of players led by E O'Bannon filed a Class Action lawsuit the basis was that an EA Sports video game used their likenesses without their permission or compensation.
In 2014 a group of Northwestern players petitioned the National Labor Relations Board to classify them as employees and allow them to unionize and get the benefits of the commercial opportunities.
in 2019 the State of California became the first state in the nation to enact NIL legislation that prohibited the NCAA from punishing student-athletes who earn NIL compensation. This legislation was to take effect in 2023. The next year several other states followed with various forms of legislation taking effect in 2022 and 2023.
Also in 2020 the NAIA, (National Association of Intercollegiate Athletics passed regulations allowing for NIL compensation.
2021 in NCAA vs Alston the U.S. Supreme Court once again had a say and rejected an NCAA appeal of it's antitrust lawsuit. This finalized a lower court decision that the NCAA IS NOT exempt from antitrust regulations. This was in essence the final straw that broke the camel's back and ushered in more NIL legislation and compensation which forced the NCAA to adopt interim NIL policies to allow NIL compensation. At current 32 states have passed NIL laws, and many federal bills have been introduced at the federal level but none have been passed.
In July 2021 the NCAA adopted an interim NIL policy. The reason they didn't do a more permanent policy was that some school Administrators and the NCAA figured the government would step in. Now we all know what the opposite of progress is Congress. We also know just how fast the wheels of government turn.
NCAA president Charlie Baker has said the failure to implement clear NIL rules immediately was a “big mistake.”
The new WILD WILD WEST
In December of 2023, Penn State football coach James Franklin said "I think there’s major concerns with what’s going on in college football right now, There’s just really no guardrails, not a whole lot of guidance, not a whole lot of governance. And it's concerning." He went on to say that without clear NIL guidelines from a collegiate governing body like the NCAA, Franklin said the scene has become "a little bit of the wild, wild west."
This is further indicated by comments from Nebraska Coach Matt Rhule in a press conference last year. "Make no mistake that a good quarterback in the portal costs, you know, a million to $1.5 million to $2 million right now, just so we're all on the same page. Let’s make sure we all understand what’s happening."
What was based on good intentions has now become a game of financial gunslinging and stagecoach robbery. To put it into the Wild, Wild, West vernacular
Here is a look at how NI is used
The NCAA now finds themselves in a position to adopt a permanent solution. They have had two and a half years to adopt such a policy and nothing has been done. So the reason NIL is seemingly out of Control can attributed to the non-action of the NCAA.
Now the interim policy is Schools can’t use NIL money as a recruiting inducement. They are not allowed to arrange specific NIL deals for individuals. (meaning they can't say to a recruit that they will get specific amounts of money or even use the possibility of a NIL agreement).
Universities are allowed to partner with Collectives, which can encourage boosters to donate to groups to facilitate the availability of money for NIL purposes. Universities cannot tell Groups and others how to spend that money.
But When Hunter Dickenson was transferring from Michigan, he supposedly stated that, if I went to the highest bidder it would not be Kansas yet he signed a hefty deal from Addidas the shoe supplier for Kansas.
NIL is also now trickling down to the High School level.
The North Carolina Board of Education has enacted a policy of allowing student-athletes to sign an NIL beginning with the 2025-26 year.
There are already 6 states; California, Colorado, Georgia, Idaho, and Illinois plus the District of Columbia that allow NIL deals for High School athletes.
This, allows a direct line of NIL collectives access to 17 and 18-year-old kids and can influence them as to what college they choose.
Leaf Trading Cards already has deals in place with 5 High School athletes committed to universities. Now there is nothing to suggest that that these kids have been directed to the universities that they chose. However, to ignore that the opportunity could present itself to me is short-sighted.
This to me is a very slippery slope. We are already seeing some students accelerate their graduation to get signed on with a school to start the NIL process. It will take a big effort by the US Congress to curb this and bring back some sensibility to the process. Otherwise, I see major opportunities of even more exploitation of athletes by these so-called collectives than the schools and the NCAA ever did.
Thanks for reading check out the NCAA Report presented by the F.U.E.L. Sports Network hosted by myself and Russ Robinson.
Also, check out my other podcast Talking Sports on the Bleachers.
Hit me up on Twitter/X @tsotbgcs.
Stay tuned for part 2.
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