More on NIL Super deals and NIL Collectives

[GojiraCane]

Brazilian soccer guys too. It’s offensive to Americans but as long as the deals aren’t obscene a lot more kids get money upfront as people spread their bets.

Under this scenario....

Aaron Rogers signing $200M extension

Aaron Rogers realizing that 75% of his salary is going to the NIL Collective who he signed with 15 years ago...

 

[GojiraCane]

I saw someone post this elsewhere. I haven't listened to the podcast yet myself but found it interesting....

According to Bruce Feldman, who claims to have seen the contract, Nico would give the collective signing him the exclusive rights to his NIL for the next 3 years until he matriculates to the NFL. In other words, he could not receive any NIL compensation if he transfers

That was on a podcast yesterday. Feldman and Stewart Mandel spent the first 20 minutes talking about the proposed contract and NIL

So to be clear, if he transferred to Miami and got a $2M NIL there, that money would then revert to THE Foundation?

 

[TemplarCane]

So to be clear, if he transferred to Miami and got a $2M NIL there, that money would then revert to THE Foundation?

Doesn’t make sense.

If THE Foundation paid for exclusive NIL rights to the player, and the deal cannot tie the player to a specific school, why can’t the player transfer? If THE Foundation doesn’t pay aren’t they violating the terms of the agreement?

Feldman was vague for someone who allegedly read the contract.

 

[GojiraCane]

Doesn’t make sense.

If THE Foundation paid for exclusive NIL rights to the player, and the deal cannot tie the player to a specific school, why can’t the player transfer? If THE Foundation doesn’t pay aren’t they violating the terms of the agreement?

Feldman was vague for someone who allegedly read the contract.

What I mean is if the NIL payments are contingent to the player staying at Ohio State. He’s free to transfer, but not only does his NIL rights stay with THE Foundation, but the revenue from any new NIL deals at his new school go not to him, but back to THE Foundation.

So he can transfer, but he will never see a penny if he does not play at Ohio State.

 

[TemplarCane]

What I mean is if the NIL payments are contingent to the player staying at Ohio State. He’s free to transfer, but not only does his NIL rights stay with THE Foundation, but the revenue from any new NIL deals at his new school go not to him, but back to THE Foundation.

So he can transfer, but he will never see a penny if he does not play at Ohio State.

NIL deals restricting a player to a specific school or based on game performance are not allowed by NIL laws. This being the case, I don’t understand how your scenario is legal and enforceable by THE Foundation.

@apfenny3 ?

 

[GojiraCane]

NIL deals restricting a player to a specific school or based on game performance are not allowed by NIL laws. This being the case, I don’t understand how your scenario is legal and enforceable by THE Foundation.

@apfenny3 ?

Technically, he can go wherever he wants. He just can only get paid if he stays at the school he originally agreed to play for.

More worried about the scenario where the college player gives up 60 percent or more of his future earnings in the NFL for a six figure check from THE Foundation. That will be ugly.

 

[Cane30]

As we know the states that passed NIL laws have different laws. My understanding is that Ohio allows in house NIL deals and Ohio State's NIL deals go through the University. I need to read up on Urban Meyer's job with this NIL company tied to OSU.

 

[TemplarCane]

Technically, he can go wherever he wants. He just can only get paid if he stays at the school he originally agreed to play for.

More worried about the scenario where the college player gives up 60 percent or more of his future earnings in the NFL for a six figure check from THE Foundation. That will be ugly.

Agree on your second point. Why would anyone sign that agreement? Short sighted, for sure.

But I don’t believe your first point is valid. An NIL deal cannot be tied to a school, so the agreement should be invalid and not enforceable. The player should therefore be free to sign other NIL deals.

 

[TemplarCane]

As we know the states that passed NIL laws have different laws. My understanding is that Ohio allows in house NIL deals and Ohio State's NIL deals go through the University. I need to read up on Urban Meyer's job with this NIL company tied to OSU.

@apfenny3 and @Brooklyndee have both commented that NIL deals linking a player to a specific school are not allowed.

Unless I missed something.

 

[Dude]

Lol; tried to tell ya’ll before this chit happened. Somehow u thought this would even the playing field & would be a good thing to bring back the proverbial “parity.”

When there’s no structure, all u have is interpretation which leads to chaos. I’m sure something will give, eventually; but when, who knows. The worst thing that could’ve happened was not having set guidelines regarding NIL, namely, players ONLY can get compensated for the use of their name, image, or likeness regarding any University published materials including merchandise, commercials, memorabilia, gaming, promotions, posters.

This chit is literally the Wild, Wild West. But, for some this is what u wanted b/c u thought it was a benefit. All this did was empower boosters to come out from the dark & be flagrant, while also stopping kids from taking paper bags & dipping.

I have a suspicious the NCAA wanted it to be this way so we would be begging them to regulate.

 

[Brooklyndee]

As we know the states that passed NIL laws have different laws. My understanding is that Ohio allows in house NIL deals and Ohio State's NIL deals go through the University. I need to read up on Urban Meyer's job with this NIL company tied to OSU.

Every nil goes through the school before a kid can sign. It's called compliance and keeps the school in the clear...

 

[CANEMC]

 

[ZeroBeachCane3]

 

[GojiraCane]

So, literally a bag man. Okay then.

 

[Warrior808]

The NIL deal can require appearances etc. If its linked to say an Athens GA car dealership the athlete will need to be in Athens to realistically make those appearances. Especially in season. If said athlete attends Georgia, they can make the appearance schedule very light. If he bails, they can make life difficult and hold him to everything in the contract or it would be a breach that releases them from obligation.

Thats one way to do it off the top of my head. I believe they also pay money up front as an "advance" on the end settlement amount. So if a player breaks his obligation he could potentially have to pay it back.

 

[GojiraCane]

The NIL deal can require appearances etc. If its linked to say an Athens GA car dealership the athlete will need to be in Athens to realistically make those appearances. Especially in season. If said athlete attends Georgia, they can make the appearance schedule very light. If he bails, they can make life difficult and hold him to everything in the contract or it would be a breach that releases them from obligation.

Thats one way to do it off the top of my head. I believe they also pay money up front as an "advance" on the end settlement amount. So if a player breaks his obligation he could potentially have to pay it back.

Who monitors enforcement of the deal?. Let’s do a couple of hypotheticals:

Saban Motors offers a $83M deal to Johnny McFiveStarr for his NIL. Terms are never released, and McFivestarr’s NIL is never actually used whatsoever. But he still gets the money.

Saban Motors offers a $98M deal to Brock McBlueChip for his NIL. Terms released publically show that it calls for weekly appearances at the dealership. Brock never makes an appearance in his three year college tenure.

So who monitors that? Why couldn’t either of these scenarios happen? Moreover, why wouldn’t they happen?

 

[Shogungts]

Who monitors enforcement of the deal?. Let’s do a couple of hypotheticals:

Saban Motors offers a $83M deal to Johnny McFiveStarr for his NIL. Terms are never released, and McFivestarr’s NIL is never actually used whatsoever. But he still gets the money.

Saban Motors offers a $98M deal to Brock McBlueChip for his NIL. Terms released publically show that it calls for weekly appearances at the dealership. Brock never makes an appearance in his three year college tenure.

So who monitors that? Why couldn’t either of these scenarios happen? Moreover, why wouldn’t they happen?

Enforcing it from an NCAA perspective would likely be difficult unless the contract was public and even then I think it would be realistically difficult as who is going to monitor it, but if one of the the parties decided the other wasn't living up to their end of the bargain then they can take the other to court which is the real point of them. And unfortunately - at least if the big $8M NIL story is correct - a lot of players are signing contracts that they don't understand with terms that aren't very favorable to them (remember, this is 3rd parties that are setting up the contracts including the terms).

So in your scenarios, I doubt anyone would enforce either, but I also think that they are generally making the requirements so simple (show up at a couple of appearances) that most places would stick to it in order to not bring unnecessary heat.

Edit: Also wanted to point out that Saban is not offering anything; the offers are coming via 3rd parties that (supposedly) do not have contact with anyone at the school. We know that is very unlikely there will be back channel communication, but that won't be official so it will be another way of distancing the school/coaches from any improprieties.

 

[Shogungts]

The NIL deal can require appearances etc. If its linked to say an Athens GA car dealership the athlete will need to be in Athens to realistically make those appearances. Especially in season. If said athlete attends Georgia, they can make the appearance schedule very light. If he bails, they can make life difficult and hold him to everything in the contract or it would be a breach that releases them from obligation.

Thats one way to do it off the top of my head. I believe they also pay money up front as an "advance" on the end settlement amount. So if a player breaks his obligation he could potentially have to pay it back.

Yep - this is what that $8M contract basically did; it didnt say the kid had to go to Tenn (the presumed location), but that they owned ALL of his future NIL and that he would need to show up to events that were near the school this was intended to get the kid to go to. They can make those events more or less frequent as leverage. So you go to Tenn and we make the events once a month, but if you go to say USC all of the sudden we are asking for you to do weekly appearances. And since they own all of his future NIL, he can not negotiate another NIL deal with another school essentially locking him into this decision for his college career.

 

[GojiraCane]

Yep - this is what that $8M contract basically did; it didnt say the kid had to go to Tenn (the presumed location), but that they owned ALL of his future NIL and that he would need to show up to events that were near the school this was intended to get the kid to go to. They can make those events more or less frequent as leverage. So you go to Tenn and we make the events once a month, but if you go to say USC all of the sudden we are asking for you to do weekly appearances. And since they own all of his future NIL, he can not negotiate another NIL deal with another school essentially locking him into this decision for his college career.

That's what I feared.

So imagine if you are Justin Fields and the Bulldog Collective signed you to that deal. You decide to transfer to Ohio State because that's the best for you in terms of playing time and NFL opportunity....but....now you have to weigh that against the fact that your transfer will not only negate any further receipt of payment from your existing NIL deals, but the revenue from any new Ohio State-based NIL deals is automatically going back to the Bulldog Collective.

Furthermore, some of these players might find that not only did they sign their NIL to a Collective, but find that when they do a Chunky Soup sponsorship eight years later as an NFL All Pro that they in turn will have to give all of that revenue (or a large share of it) to the Collective that gave them $1M in college.

 

[Shogungts]

So imagine if you are Justin Fields and the Bulldog Collective signed you to that deal. You decide to transfer to Ohio State because that's the best for you in terms of playing time and NFL opportunity....but....now you have to weigh that against the fact that your transfer will not only negate any further receipt of payment from your existing NIL deals, but the revenue from any new Ohio State-based NIL deals is automatically going back to the Bulldog Collective.

Worse is that in some cases that athlete could owe the collective money even if they don't get NIL from anyone else.

Furthermore, some of these players might find that not only did they sign their NIL to a Collective, but find that when they do a Chunky Soup sponsorship eight years later as an NFL All Pro that they in turn will have to give all of that revenue (or a large share of it) to the Collective that gave them $1M in college.

There are some parallels here to the groups who will give minor league baseball players money upfront and support them while they (generally) make no money in the minors and in return get a percentage of their future earnings for their entire career. Could probably make some parallels to the music industry as well; signing naïve up and coming artists to ****** deals that lock them in long term.

Preying on naïve/desperate people and justifying it by saying 'they should have read the contract'