The new era of college sports has arrived, this era allows athletes to use their names, images and portraits to make money. Of course, under the concept of “amateurism”, this has been strictly forbidden throughout the history of the NCAA.
You must have heard all kinds of “NIL laws” and the like. Chances are, you have a problem. We will try to answer some of these questions today, starting from this: NIL is different from NFT, although athletes can make money by selling NFT.
Will players make money?
Yes it is. At last.
Will they be paid by the school?
No. Nothing has changed in this regard. This is about the athlete’s ability to market himself/his own outside of the university. The school still cannot give athletes a “signing bonus” or something similar to convince them to go to school. These new rules/laws do not allow schools to pay athletes.
From NCAA’s interim NIL policy: “Although NIL activities are open to student athletes, the policy retains the promise to avoid paid games and the undue temptations associated with choosing to attend a particular school. These prohibitions will continue to be effective.”
How will players get paid?
To be honest, there are many methods, many people. Tracking will be a huge mess, at least for the first year or two, because everyone is adapting to the new-and should have been-normal. Basically, if someone wants to pay athletes to endorse and/or represent them, it is now legal. Any form of advertising is legal. Personal appearances of any kind—for example, signing at a car dealership for $20 per person, athletes keeping a considerable amount of cash, or star players paying for appearances in nightclubs—suddenly become dignified.
The basic guiding principle is: everything that athletes do must conform to the umbrella of “fair market value”, which is of course a bit vague.
How will the athlete keep track of everything?
once again, From the interim policy: “College athletes can use professional service providers for NIL activities.”
These service providers-such as Icon Source and DreamField-have emerged. More here, more will follow.
Do athletes have to report NIL transactions to the compliance department?
For this answer, we will introduce Adam Arnaout.He is a Florida lawyer Focus on NIL and intellectual property as well as the founder of Arnaout Sports and Entertainment.
“Yes. Athletes must disclose all NIL transactions to their sports compliance department to ensure that the transaction complies with state NIL laws (or, in the absence of state NIL laws, the school’s own NIL policy). Many schools are using Opendorse And applications such as INFLCR, which act as a simplified portal for athletes to upload NIL contracts so that they can be reviewed and approved by the compliance department.”
Is it really illegal now?
of course. It is still NCAA. Suppose there is a large booster with a car dealership. The booster still can’t say, “I’ll give you $50,000 for you to join my alma mater and star in my alma mater.” That’s illegal. There will still be the same types of recruitment restrictions that have led to violations and penalties in the past.
Is there no way to solve it?
Yes it is. And they are not even real loopholes, although since we are used to thinking about NCAA and “amateurism,” they may feel that there are loopholes. They are now just “legal ways to pay athletes for services.” In the example above, the athlete who signed with the school can immediately start a series of personal appearances and endorsements during his/her first year at the school, and receive a total of $50,000 in compensation. You may not get $50,000 for one signature-this is not the market value-but if it is 10 appearances/promotions, $5,000 each time? Everything is fine now, because this is a player who uses his/her “celebrity” in school to make money, rather than using his/her promise as a recruit to get incentives.
So how can players really get into trouble?
Again, Arnaout: “Although it varies according to the laws of a particular state, the most likely ways for athletes to lose their qualifications are: 1) Illegal “paid games” situations, such as high school recruits paid by college boosters to affect athletes Or the choice of the university, and 2) to reach a deal that is clearly not commensurate with the fair market value of the service provided (ie, a $5 million sponsorship for a social media post)”
It’s all about social media, isn’t it?
Not all, but social media will become a huge source of income for athletes. Many of them already have a large number of followers on social media, and they already have the influence of a large number of followers. Now they can finally make money in any way over the years through paid tweets/endorsements, ads on YouTube pages, or “normal” social media heavyweights. The playing field is level.
What about the jerseys they sell in the school bookstore? Everyone knows why they sell a specific jersey number, even if there is no player name on the back.
Again, Arnaout: “Athletes will not receive those unnamed bookstore jerseys. However, athletes can now freely sell their own products or personal brand clothing independently of the school.”
What are some examples of athletes having trouble in the past, but now they are fine?
remember Use YouTube channel to backup UCF kicker? Donald de la Haye was (and still is) very good at producing YouTube content, and most of the videos have nothing to do with college football. But because he is a college football player, any money he makes may disqualify him. He did not compromise with the NCAA-which required giving up some of the money he earned-he stopped playing football. Now, there is nothing wrong with what he has done (because there is nothing wrong with everything he has done except for the distorted worldview of the NCAA).
What about the bowl game? For example, can the Alligator Bowl pay a player who may have been considering absent-to prepare for the draft, or for any reason-for some form of endorsement under the conditions of his participation in the game?
Arnaout, last time: “Good question! Although it will again vary according to state regulations, it will be a violation in Florida. Our regulations clearly stipulate that athletic performance cannot be exchanged for compensation, so if a bowl game Or a third-party entity using money to induce players to participate in the game will be a violation.”