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How NIL should work

ouchmyknee

All Conference
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Nov 10, 2006
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Hoboken, NJ
I posted this in another thread, but figured it might warrant its own. I've been slightly involved in some NIL stuff and have given a lot of thought around how the NCAA should have approached it. I think the following is the best outcome for all "student-athletes". Granted this might be ruled against by the courts, but let's pretend it wouldn't be.

Under my proposed NIL rules, all student athletes are eligible to earn compensation through use of their NIL through participation in a NCAA-wide players association. Under the association, players can earn compensation in the following ways:
  • Revenue share for all officially licensed jerseys and apparel featuring said athlete (percentage negotiated by the players association)
  • Direct compensation from the university to the athlete for use on athletics department advertising (if they are on an ad, they get reasonable comp. if they are not featured on an ad, they get nothing)
  • Revenue share for officially licensed video games featuring said athlete (EA NCAA Football, NCAA March Madness, etc.)
Outside of those streams, I think it's fair for athlete's to be able to run camps but there should be some reasonable approved registration fee that must be adhered to (similar to how remediation companies all work off a state-approved price list).

Revenue streams outside of these options might be allowed but only up to a certain amount, otherwise the student athlete would lose their amateur status and not be eligible to continue participating in collegiate sports. All this being said, I do believe that there should be viable options for athletes to go "professional" right from high school - which would remove the athletes who have no interest in the academic part of being a student athlete.

For basketball, the NBA should expand the draft and allow high school players to enter their names (bypassing college) with placement on G League teams if they're not ready for the NBA team. For football, why can't NFL teams adopt an academy model where drafted high school players can enter into something similar to Overtime Elite. They could begin training, learning playbooks, etc. until the NFL team thinks they are ready. I wouldn't imagine this would be lucrative, but it could be an avenue for certain players.

Thoughts on the above?
 
A question for tax/financial guys—will schools in states that don’t have income tax, like Tennessee, Texas, Florida, Nevada, etc. , have an advantage in recruiting now ?
 
A question for tax/financial guys—will schools in states that don’t have income tax, like Tennessee, Texas, Florida, Nevada, etc. , have an advantage in recruiting now ?

It will for in state residents. Players from other states with income tax is a little less clear but "probably".
 
It will for in state residents. Players from other states with income tax is a little less clear but "probably".
they can claim to be in-state residents after they move there
 
I posted this in another thread, but figured it might warrant its own. I've been slightly involved in some NIL stuff and have given a lot of thought around how the NCAA should have approached it. I think the following is the best outcome for all "student-athletes". Granted this might be ruled against by the courts, but let's pretend it wouldn't be.

Under my proposed NIL rules, all student athletes are eligible to earn compensation through use of their NIL through participation in a NCAA-wide players association. Under the association, players can earn compensation in the following ways:
  • Revenue share for all officially licensed jerseys and apparel featuring said athlete (percentage negotiated by the players association)
  • Direct compensation from the university to the athlete for use on athletics department advertising (if they are on an ad, they get reasonable comp. if they are not featured on an ad, they get nothing)
  • Revenue share for officially licensed video games featuring said athlete (EA NCAA Football, NCAA March Madness, etc.)
Outside of those streams, I think it's fair for athlete's to be able to run camps but there should be some reasonable approved registration fee that must be adhered to (similar to how remediation companies all work off a state-approved price list).

Revenue streams outside of these options might be allowed but only up to a certain amount, otherwise the student athlete would lose their amateur status and not be eligible to continue participating in collegiate sports. All this being said, I do believe that there should be viable options for athletes to go "professional" right from high school - which would remove the athletes who have no interest in the academic part of being a student athlete.

For basketball, the NBA should expand the draft and allow high school players to enter their names (bypassing college) with placement on G League teams if they're not ready for the NBA team. For football, why can't NFL teams adopt an academy model where drafted high school players can enter into something similar to Overtime Elite. They could begin training, learning playbooks, etc. until the NFL team thinks they are ready. I wouldn't imagine this would be lucrative, but it could be an avenue for certain players.

Thoughts on the above?
The courts have more say. The NCAA lost.
 
Could the ncaa just use “amateur status” as their basis to enforce something? They can define what that means then say only amateurs can play, no?
No. Only if the NCAA/TV/social media etc and all of it's members stop showing the players in ads or make money from TV. The schools really have no say if a player signs a NIL.
 
Could the ncaa just use “amateur status” as their basis to enforce something? They can define what that means then say only amateurs can play, no?

Isn't that the original problem though.
They defined "amateur" too broadly and restricted any and all employment opportunities?

If a high school kid has 1m Tiktok followers and gets sponsorship/ambassadorship offers he has to drop all that just because he was offered a baseball scholarship.
 
Isn't that the original problem though.
They defined "amateur" too broadly and restricted any and all employment opportunities?

If a high school kid has 1m Tiktok followers and gets sponsorship/ambassadorship offers he has to drop all that just because he was offered a baseball scholarship.

Why would he take the scholarship?
 
Isn't that the original problem though.
They defined "amateur" too broadly and restricted any and all employment opportunities?

If a high school kid has 1m Tiktok followers and gets sponsorship/ambassadorship offers he has to drop all that just because he was offered a baseball scholarship.
Yes the amateur status was ridiculous. I could not play golf after 1 year at Rutgers because I worked at Spring Meadow. It was a State Golf Course (still the only one owned by NJ I think) I was paid the same wage as all of the summer full time help. I was an amateur under the USGA/PGA in every sense. The NCAA had different/stranger rules and I wasn't even on scholarship for football or golf. I was hired not because of my golf skills but I was willing wake up in the dark, drive to the course to open the parking lot 1/2 hour before sunrise.
 
Why would he take the scholarship?

To play baseball?

I'm certainly not an expert but I thought you aren't allowed to have any outside income if you are on athletic scholarship.

So the HS influencer would have have to stop his $10,000 outside income to play NCAA.
Even though the income has zero relation to his NCAA status.

If you are a non-scholarship athlete - were you able to have an outside job?
I thought it didn't matter. Scholarship or not you can't be an NCAA athlete an outside job/income?
 
I posted this in another thread, but figured it might warrant its own. I've been slightly involved in some NIL stuff and have given a lot of thought around how the NCAA should have approached it. I think the following is the best outcome for all "student-athletes". Granted this might be ruled against by the courts, but let's pretend it wouldn't be.

Under my proposed NIL rules, all student athletes are eligible to earn compensation through use of their NIL through participation in a NCAA-wide players association. Under the association, players can earn compensation in the following ways:
  • Revenue share for all officially licensed jerseys and apparel featuring said athlete (percentage negotiated by the players association)
  • Direct compensation from the university to the athlete for use on athletics department advertising (if they are on an ad, they get reasonable comp. if they are not featured on an ad, they get nothing)
  • Revenue share for officially licensed video games featuring said athlete (EA NCAA Football, NCAA March Madness, etc.)
Outside of those streams, I think it's fair for athlete's to be able to run camps but there should be some reasonable approved registration fee that must be adhered to (similar to how remediation companies all work off a state-approved price list).

Revenue streams outside of these options might be allowed but only up to a certain amount, otherwise the student athlete would lose their amateur status and not be eligible to continue participating in collegiate sports. All this being said, I do believe that there should be viable options for athletes to go "professional" right from high school - which would remove the athletes who have no interest in the academic part of being a student athlete.

For basketball, the NBA should expand the draft and allow high school players to enter their names (bypassing college) with placement on G League teams if they're not ready for the NBA team. For football, why can't NFL teams adopt an academy model where drafted high school players can enter into something similar to Overtime Elite. They could begin training, learning playbooks, etc. until the NFL team thinks they are ready. I wouldn't imagine this would be lucrative, but it could be an avenue for certain players.

Thoughts on the above?
Free market, don’t think you will be allowed to cap earning because of scholarship. Because you may get players who will decline the scholarship , receive NIL $$$$ and pay their own way to play. Especially in BB. These player are only at the school for maybe 10 months ( Jun- March), if they leave after one year.
 
Free market, don’t think you will be allowed to cap earning because of scholarship. Because you may get players who will decline the scholarship , receive NIL $$$$ and pay their own way to play. Especially in BB. These player are only at the school for maybe 10 months ( Jun- March), if they leave after one year.
The only way to create me some rules would be to negotiate with the athletes (and schools want this even less than NIL). To the original question, if athletes were required to run their deals through the schools, you’d avoid some potential tax liabilities for the athletes. Could also have the conferences do it on behalf of athletes.
 
Could the ncaa just use “amateur status” as their basis to enforce something? They can define what that means then say only amateurs can play, no?
The NCAA's broad and outdated definition of amateur is the basis of the problem. They made billions off of a product that was based on the labor of what were essentially unpaid workers. The courts and various state legislatures have toppled their house of cards, and now the chickens are coming home to roost.
 
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