As we have seen the NIL is a swamp to navigate with all the pitfalls of a trip down the Bayou in Louisiana. Coupled with the seemingly wide-open transfer portal, the NCAA is struggling to keep up let alone get ahead of it. There does not seem to be an urgency or even a willingness by the NCAA to address the issues. There have been coaches, fans, and even administrators who have spoken out about it. It seems the NCAA as an organization however doesn't know how to address it and would prefer that the federal government step in. They could get their wish, as congressional hearings have been held. More on that in another article.
So, what are the issues that need to be addressed?
Rate of compensation
Right now, there is no maximum on athlete compensation. Collectives can pay whatever they want for an NIL Contract.
Standardization of rules governing the participation of the athlete.
Although some states and even some universities may have certain requirements on disclosure of terms and the requirements for the athlete. It is not something that has any standardization to it.
Transparency of the process.
While it is not some super-kept secret the NIL process lacks true transparency. This varies from state to state and even college to college. All NIL deals are reported to the NCAA, but not all details are revealed or made public.
SO, WHAT CAN BE DONE?
There are two ways to attack the issue.
One is the political arena, and the federal government gets involved.
Not all states have NIL laws, which vary from state to state.
Congress can set limits on compensation and athlete participation, much like they did with Title IX. Any number of federal agencies could be involved, including the Departments of Education, Labor, OSHA, and Commerce. Each could have its own agenda. I think our government has better things to do.
The other is that the NCAA gets proactive and puts forth guidelines and rules designed to set limits on compensation, participation, and the potential for conflict of interest (which they have been known to have trouble with). These guidelines will have to be specific and detailed.
First, define what constitutes an acceptable deal.
This would include limits on the type of businesses and organizations that can be involved.
Second, levels of compensation would have to be established. rule regarding how and when an athlete can perform, or the collective can use an athlete' NIL.
Third, there would have to be strict oversight established and penalties for violations that would occur. These penalties must pertain to all parties not just the institution and athlete.
This would require a major undertaking by the NCAA and ALL conferences would have to be on board and support such an effort
Here are some ideas that to make sense at least to me.
Transparency and disclosure:
All NIL deals must be reported to the NCAA, with details including compensation to the athlete and where that compensation is coming from. Also, the duties or services required by the athlete. These details should also be made available to the public. This establishes a way to ensure that all deals are within the rules and there is no conflict of interest
Educational initiatives:
This should be a two-pronged. 1st Provide extensive education to student-athletes, coaches, and institutions on NIL regulations, including compliance procedures and potential consequences of violating the rules. This could also include financial advisors to assist in investments for athletes and to help negotiate a proper deal.
The second would be to ensure that all those who engage in NIL deals receive a college degree within 5 years of their first year of enrollment. Student-athletes get essentially 5 years of eligibility to play in college sports (this is to account if they miss a season due to injury or if they were to take a redshirt year. I think if the athlete does not get a degree within a normal time frame, then he or she must reimburse the University for the money used on their scholarship.
Enforcement mechanisms:
Establish a robust system for investigating suspected NIL violations, with clear sanctions for non-compliance, including potential penalties for institutions, athletes, and collectives or investors who violate the guidelines and rules.
Collective bargaining:
This can be a little tricky. Explore the possibility of creating a collective bargaining model where athletes as a group can collectively negotiate NIL deals with companies and or collectives. Much like the MLB, NBA, NFL and NHL. The athletes would essentially form a union. which has its own set of pitfalls
State law standardization:
This would be something that would take negotiation and maybe even assistance from the Federal Government. The NCAA would have to work with all 50 states to broker some kind of agreement that would set a standard for all states.
This does sound like a lot, and it is a cover-all-the-bases approach. It sets the rules and roles of each participant. It provides standardization and consequences for non-compliance. That is what is lacking in the current environment right now. In my opinion, these are the things that are somewhat common sense that need to be done. I will be taking a look at the possible legislation that may be coming down the pipe in future articles.
Thanks for reading and don't forget to check out my podcasts
Talking Sports on the Bleachers and
the NCAA Report with Don and Russ.
Until next time so long for now.
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