🏅 Could the NCAA go Bankrupt?

Teaming up with

Hey there,

What’s the weekend without NIL updates? That’s what we’re here for – every week, we’re giving y’all the news on what’s happening in the NIL world. In today’s edition, we’ve got a bombshell: The NCAA could go bankrupt if a settlement isn’t reached in the House v. NCAA case. Let’s get right into it.

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KICK-OFF

Could the NCAA Go Bankrupt?

According to recently obtained documents, the NCAA and power conferences could face up to 20 billion – yes, billion – in back damages if a settlement isn’t reached in House v. NCAA. That figure is high enough to completely bankrupt the NCAA.

Those documents also detailed what a new compensation model might resemble for college sports if a settlement were to be reached. That model would include up to $22M in revenue shared with athletes annually and a completely new scholarship system. 

So much is at stake right now with this potential House v. NCAA settlement. If both sides can’t agree to terms, the NCAA, and perhaps even the power conferences themselves, could be things of the past. (More)

Opendorse CEO Responds to Saban’s NIL Criticism

Opendorse’s CEO Blake Lawrence took to Twitter to respond to Nick Saban’s comments on how NIL might negatively affect viewership and interest in college sports. Lawrence’s main thesis: The data doesn’t support Saban’s take.

Here are a just few of the numbers Lawrence cites. After NIL became an official policy, 41% of college sports fans reported having a more favorable opinion of the NCAA than they had previously. 30% of fans also said they enjoy games more than they did before NIL, although 26% reported enjoying games less. It’s a divisive issue.

Lawrence also discusses how young people specifically support the rules – Gen Z and millennials are radically in favor of the transfer portal and NIL. That’s maybe the most important takeaway because if a young fanbase can stay engaged, their support will carry for decades. (More)

Women’s NIL Valuations Set to Soar

Learfield has been tracking the growth of women’s sports for the last few years, and their data could reveal an explosion waiting to happen in women’s NIL sports markets. Their numbers, which focus on women’s basketball, show that more people are watching the sport than ever:

That’s not the only thing their data revealed. Social media has driven a huge part of the women’s college basketball market thanks to the ease of clipping and sharing highlights.

Unsurprisingly, they tracked an uptick in social media interaction around the sport over the last few years – a 7.8% increase in women’s basketball page views, and a 33% increase in roster page visits. Buy your stock now, because it seems like NIL valuations for women’s basketball are set to go through the roof. (More)

Teaming up with

Teamworks, the leading technology provider for collegiate athletic departments, will launch Teamworks Wallet this summer. Teamworks Wallet (“Wallet”) is a digital banking solution built specifically for athletic departments and student-athletes. Trusted by over 700 NCAA institutions and 1,000 elite sports organizations worldwide, Teamworks is uniquely positioned to deliver a centralized destination for student-athletes to receive, store, and spend their money.

At launch, Wallet will integrate with Teamworks Influencer to streamline NIL payments for student-athletes. This integration allows collectives, businesses, and donors to quickly transfer funds directly into student-athletes' Wallet accounts without incurring any fees from Teamworks.

Learn More>>

BEST PRACTICES

Braden Fiske: For NIL, Just Be Yourself

Before Braden Fiske became a millionaire via the NFL draft, the then-FSU DT capitalized on his athletic successes through multiple NIL sponsorships. Fiske interviewed with Business Insider and offered advice to help other athletes follow a similar path.

Social media is a powerful tool for athletes seeking recognition. According to Fiske, social media creates a face that companies can attach to their brands, opening up more opportunities for NIL deals. Fiske also noted that navigating through the world of NIL is difficult, so building a team of advisors to help is key in securing the right fit for you as an athlete.

Fiske finished off by emphasizing the importance of saying no. “Stay true to yourself,” said Fiske “These big brands will try to tell you what you need to do. Do research on your own and don’t let anyone put a dollar amount on your head.” (More)

DOWN TO BUSINESS

Beverage Companies Love NIL

NIL has revolutionized the beverage industry… or maybe the other way around? Regardless, the relationships that beverage companies are forming with collectives and individual athletes have created an extremely profitable business ecosystem for both parties. 

CELSIUS has been one of the biggest winners in this space. To this point, they’ve signed mostly college football players (while dabbling in basketball here and there). But this isn’t just about the here and now—CELSIUS is playing the long game, hoping to maintain a strong relationship with its sponsors that will carry the partnership into the players' professional careers.

Beverages are somewhat perfect sponsorship partners because of how easy they are to target a “type” of fan. Athletes can promote energy drinks, like CELSIUS, to other athletes; meanwhile, collectives can promote alcohol to their alumni boosters. Business-wise, it makes sense across the board. (More)

• NCAA President Charlie Baker says that there’s still “a lot of work to be done” before a settlement is reached in House v. NCAA, but added that he is “hopeful” that a solution can be reached.

• Missouri’s award-winning wide receiver just signed an NIL deal with football equipment company NXTRND. Luther Burden joins Ohio State’s Caleb Downs and Colorado’s Travis Hunter as the company’s NIL ambassadors.

COLLECTIVE 101

Purdue’s NIL Whiskey

Purdue’s NIL collective is capitalizing well on 2024’s historic basketball run. First, they were the #1 selling NIL store throughout April – we covered that last edition. Now they’re selling commemorative bottles of whiskey to fans, and 25% of all profits are heading directly to the school’s NIL pool.

It looks like the Boilermakers are getting in on the beverage industry action we talked about in the Down to Business section. If they can keep the NIL momentum up, expect them to be back on top of the basketball world soon. (More)

• John Calipari may not hand out all 13 basketball scholarships for the Razorbacks, instead only giving out eight or nine. “They’re leaving anyway,” Calipari explained when asked about the decision, “Why would I develop a kid for someone else?”

• Tennessee’s Athletic Director credits the school’s NIL collective for their recent athletic success. Tennessee has built out one of the best NIL programs in the country, which has resulted in winning in just about every athletic category.

ATHLETE SPOTLIGHT

Jalon Daniels

• School: University of Kansas 

• Sport: Football 

• Position: Quarterback 

• Class: Redshirt Junior 

• Accolades: Big 12 Preseason Offensive Player of the Year

• Maxwell Award Watch List 

• Preseason All-Big 12 First Team (Big 12)

• Preseason All-Big 12 First Team (Athlon)

• Preseason All-Big 12 Second Team (Phil Steele)

• The Wuerffel Trophy Watch List

• Davey O’Brien National Quarterback Award Preseason Watch List

• Walter Camp Football Foundation Player of the Year Award Watch List

• Manning Award Watch List

• Johnny Unitas Golden Arm Award Watch List

• NIL: Daniels has used Opendorse to land him deals with EA Sports, Apple, Metritrust, Frosted Flakes, Adidas, Applebees, and March Madness. 

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NIL BLITZ

♦️ This Cal professor’s financial literacy class is helping student-athletes understand NIL better

♦️ Washington State’s collective is organizing a business networking event

♦️ Blitz Memphis Tigers’ interim AD talks about their FedEx NIL deal

♦️ Dusty May on building Michigan back to basketball prominence: “We have to weigh [NIL] in every recruitment”

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BATTER UP

Today’s Poll Question:

Last Edition’s Poll Results:

Was Great Osobor's $2M price tag too pricey, a bargain, or just right?

• Too Pricey - Similarly ranked players are going for a fraction of the cost - 40%

• Bargain - He's a reigning conference player of the year! Can't overpay for one of those - 26%

• Just Right - It's a tough pill to swallow, but Osobor's performance should make the decision worth it - 34%