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Chipotle, Mayonnaise, and the NIL in Congress
Hey there,
Back for more NIL news? Well you’re in luck. We’re here again with the second edition of NIL Wire, and we’re glad you’re along for the ride with us. As we get this thing off of the ground, keep spreading the word to all of the college sports fans in your life!
It’s been a pretty wild week — we’re seeing tons of shifts legally, including discussions on whether NIL has some Title IX implications. Then there’s the recruiting side of things, where NIL has completely altered players’ decision making process.
We’ve got it all right here, at your fingertips. Just keep scrolling to read up on the latest news from around the NIL world. For free.
Oh, and also: We think we’re pretty great, but we’re NOT perfect. We’d love to hear feedback on anything and everything about our newsletter. Hit reply or send us an email at [email protected].
— Cole, Justin and Collin
You Geaux Girls!
Thus far, LSU has established itself as the NIL capital of women’s sports. The Tigers already boast the three highest paid female athletes in college sports, and they’re actively looking to add more to their ranks.
Thanks to NIL, the recruiting pitch basically writes itself. “Even the girls who walk on, they’re getting money,” star forward Angel Reese said of their basketball team, “Everybody’s benefiting from it, not just the stars of the team.”
ANGEL REESE HIT CAITLIN CLARK WITH THE "YOU CAN'T SEE ME" 👀
— ESPN (@espn)
10:07 PM • Apr 2, 2023
Reese would know best – she currently possesses the seventh highest NIL valuation in college sports at $1.7M. It would seem her recruiting pitch is working, too – The Tigers landed star transfer Hailey Van Lith earlier this year, who brings almost $600k in NIL valuation to the bayou. (More)
Title IX and NIL
LSU is a bit of an outlier when it comes to paying women athletes. Nationwide, only about 5% of NIL collective money goes toward women. That figure has raised eyebrows in legal world, signaling a potential Title IX violation.
I can hear what you’re probably thinking now: “Well, isn’t that just the market value?” Yes, but the question becomes a little different when the schools themselves play a role in deciding how to distribute NIL funds; It’s hard for schools to claim they don’t play that role when they’re hiring NIL czars and forming official partnerships with NIL collectives. NIL may pose more Title IX problems than we initially thought. (More)
Commitment Issues
Jacob and Jerod Smith have been wreaking havoc on O-lines in the state of Kentucky for their entire high school careers. The twins had done more than enough to catch the eye of a few high-profile schools, eventually committing to Jim Harbaugh’s Michigan Wolverines earlier this summer.
Well, July was a long time ago. Things change, and the twins have officially flipped their commitment to Kentucky. Wilder yet, NIL was apparently a huge part of that decision. Talking about the flip, Jacob’s mind was – at least partially – on the business side of things: “In the bigger picture, it would be a lot easier to get NIL deals in my hometown and Lexington.” (More)
NCAA Incompetence?
While it’s been a vogue legal topic as of late, Congress hasn’t had the opportunity to vote on any NIL bills within the past few months. The gears are still turning in D.C. though, as the House held a hearing on the impact of NIL for college athletes on yesterday. |
The hearing was called “Athletes and Innovators: Analyzing NIL’s Impact on Entrepreneurial Collegiate Athletes,” and it involved discussions on everything from Title IX to NIL Collectives.
In addition to debating the values and vices of NIL, the hearing also saw discussion about government’s legislative role. At one point, Rep. Morgan McGarvey (D-KY) asked “Is the NCAA so inept right now that this is something Congress must legislate?”, to which he was met with a long and uncomfortable silence. (More)
Three Strikes, You’re Out!
Last December, Pennsylvania announced that high school athletes could sign deals to profit off of their name, image, and likeness. Half-a-year in, their NIL rules seem to be working great – but that hasn’t stopped the state’s governing bodies from making sure it’s all being done the right way.
The PIAA (Pennsylvania Interscholastic Athletic Association) just implemented a three-strike system for NIL violations, with gradually ascending punishments for repeat offenders. If an athlete gets three strikes, they could have their high school sports eligibility revoked entirely, although officials don’t anticipate the rule being enforced often.
To this point, PIAA executive director Bob Lombardi has characterized the rule as mostly precautionary, adding that “we have not had any reports of somebody who has stepped outside of the intent” of NIL. (More)
Maryland Hones In
Maryland has centralized its NIL efforts into a singular collective, following the lead of other schools in trying to create a more efficient NIL strategy. Instead of having disjointed collectives distributing money, the One Maryland Collective will serve as a centralized body to allocate funds as they (and the Maryland brass, of course) see fit in the bigger picture. (More)
For the Youth
Northern Iowa is trying something new to get a leg up in NIL. In order to raise money, their non-profit Panther Collective is hosting a youth basketball camp in the Cedar Falls area for elementary-age students to learn from the best. To some, this effort represents a model of what NIL “should” be – not a massive industry moving millions of dollars for player retention, but just some college kids making a little scratch on the side. (More) |
“Shipotle”
Two years ago, Clemson’s running back Will Shipley responded to a Chipotle tweet pleading them to sponsor him. “I can promise you I love Chipotle more than anyone else in the world,” he said while publicly asking them to sponsor him. Well, two years later his dream is finally coming true.
The Chipotle has gone through a rebrand 👀 @willshipley2021
— Barstool Clemson (@BarstoolClemson)
7:10 PM • Sep 17, 2023
Clemson’s local Chipotle store just temporarily named itself “Shipotle” as part of an NIL deal with the star. While the deal is fun, no one’s quite sure how Clemson HC Dabo Swinney – a vocal critic of NIL historically – feels about the sponsorship. (More)
Tez Walker
Tez Walker is a Carolina boy through and through. He was raised in Charlotte, and after Covid-19 wiped away his 2020 season at Kent St., he decided to come back home and play for the Tar Heels. It was perfect: He would team up with Drake Maye and maybe even take a run at the ACC Title.
Well, the NCAA had other plans. They ruled him ineligible this season, which has caused quite the uproar in Chapel Hill. Mack Brown had some choice words on the ruling:
A statement from UNC HC Mack Brown on Tez Walker
— Carolina Football (@UNCFootball)
7:45 PM • Sep 7, 2023
♦️ “Pancake Honcho” signs (you guessed it!) pancake-themed NIL deal
♦️ SDSU players combat sickle cell with new partnership
♦️ Georgia St. announces NIL Collective
♦️ Hellmann’s Mayo signs three SEC studs
♦️ Tua Tagovailoa’a brother reps apartments in Maryland
Todays Poll Question:
Should Title IX rules apply to NIL Collectives? |
Last Edition’s Poll Results:
Should some NIL Collectives be Tax-Exempt?
Yes - 55
No - 45%
“In the bigger picture, it would be a lot easier to get NIL deals in my hometown”