🏅 A New #1 Valuation

Hey there,

The offseason used to be the worst part of college sports, but now the offseason is just as exciting as the regular season thanks to the constant changes happening in the NIL world. Today’s newsletter is packed out with important NIL legal updates, a brewing scandal in the youth baseball world, and a new #1 valuation for college basketball.

We love hearing feedback. Reply to this email and let us know how we can make NIL Wire a must-read for you every day. Now, to the news!

— Cole, Justin and Collin

KICK-OFF

Youth Baseball Company in Deep Trouble with NIL

Youth baseball service Perfect Game is under fire in the NIL world right now, as they’ve been collecting NIL rights from minors for half a decade with zero financial compensation. The story, first published by the Athletic, is absolutely shocking.

According to the piece, “Participants are informed that their signature at the bottom of the document grants Perfect Game ‘the absolute and irrevocable right’ to use their name, signature, likeness, image, voice and/or appearance in any photos, videos, audio, digital images or cards on behalf of any Perfect Game or its affiliates, at any present and future events related to Perfect Game.”

Translation: This giant youth baseball company – which has sent 14,000 players into the MLB – has been profiting off of minors for years. An anonymous agent called the situation “unethical and borderline illegal,” even suggesting that there should be a “class action lawsuit against Perfect Game by the parents.” (More)

🚨 New #1 NIL Valuation in College Basketball 🚨 

Great Osobor, who was named Mountain West Conference Player of the Year at Utah State last year, is heading to the University of Washington to continue his career in a Power Four conference. His NIL valuation now sits at $2M dollars – confirmed by documents shared with ESPN. 

With Bronny James, Caitlin Clark, and Angel Reese moving on to the professional ranks, Osobor’s $2M valuation is now the highest NIL valuation in all of college basketball.

Washington will be Osobor’s third school in four years. His journey has been a slow grind – working his way into a six-figure valuation after getting only a few D1 offers out of high school. (More)

Two Professors Create Blockchain NIL App

Two professors at the University of Cincinnati are hoping to revolutionize the NIL industry by incorporating blockchain into the college name, image, and likeness space. Their startup company is called Carbon Copy Assets (CCA), and they’re developing an app that will award student-athletes with badges for how they use their time – which companies can use as a resource for NIL partnerships. 

Essentially, think of this app as a reputation legitimizer. “Athletic scholars wanted a way to prove their reputation and marketability,” said Jordan Tate, one of CCA’s founders, “Our app delivers that capability for students.”

The app was originally developed to help college students navigate academic scholarships, which often require students to attend special events and perform other tasks. Now, the technology is coming directly to the NIL world. (More)

VIDEO OF THE WEEK

Opendorse’s NIL Process on Draft Night

Right after they’re drafted into the NFL, football players are posting about the Madden video game on their social media. How does it happen so fast? Well, click the link to hear Opendorse’s Blake Lawrence talk about how his company streamlines the entire process in a matter of minutes:

DOWN TO BUSINESS

New Bill would Protect NCAA from Lawsuits

Last week two members of the House of Representatives introduced a bill that would protect some of the most vulnerable institutions in the college sports world – the NCAA, the conferences, and colleges – from future lawsuits concerning athlete compensation by granting antitrust exemptions. This news comes as the House v. NCAA case threatens billions in damages.

It’s easy to see why some might oppose this bill. To many, it might seem like Congress is bailing out institutions that have little reason for sympathy. The courts are currently mulling over whether or not the NCAA has been violating antitrust law for decades – that fact, combined with the public’s somewhat negative opinion on the NCAA in general, will not endear this legislation to many people.

One of the bill’s key goals would be to grant a special non-employment status to student-athletes in the future. Unless something changes quickly, however, it seems as though employment models are coming. (More)

• Altius and OneTeam, two companies that operate heavily within the college sports industry, just announced a partnership that will combine their specialties: NIL and group licensing.

• The Florida High School Athletics Association is ready to discuss NIL for high school. As one of the country’s top athletic producers, allowing NIL in the state could even potentially attract out-of-state talent to Florida.

COLLECTIVE 101

No Blank Checks

Remember that bill we talked about in Down to Business – the one that would grant antitrust exemptions to the NCAA, conferences, and colleges? Well, The Collective Association – a trade association comprised of some of the biggest NIL collectives in the country – has come out in direct opposition to the bill:

Calling the bill a “blank check,” TCA president Russell White went even further in another tweet, saying “Congress should not grant the @NCAA and institutions a free pass for the decades they enjoyed making billions off of unpaid labor (athletes).” (More)

• Speaking of TCA, NIL software company Basepath officially joined The Collective Association as a member last week. In the announcement tweet, the company lauded TCA’s advocacy for “NIL without excessive restrictions.”

• Boise State’s football coach says the school is not promising NIL compensation to freshmen, but instead is applying resources to proven veteran players.

ATHLETE SPOTLIGHT

John Blackwell

• School: University of Wisconsin

• Sport: Basketball

• Class: Sophomore

• Accolades: 2024 Big Ten All-Freshman Team - 4x Big Ten Freshman of the Week - Career-High 18 points in 18 minutes against Robert Morris

• NIL: John leverages the platform Opendorse to secure notable NIL deals with brands such as NIL Pro Shop and Park Bank Madison. 

NIL BLITZ

♦️ How do in-house general managers work in the new college sports world?

♦️ Michigan basketball’s new assistant coach talks shop on NIL for the Wolverines

♦️ Fans love the dramatic shifts taking place in the NCAA right now

♦️ Teamworks unveils digital banking program 

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BATTER UP

Today’s Poll Question:

Last Edition’s Poll Results:

Will another tournament with NIL prize money eventually replace March Madness?

• No, the March Madness tradition is too important - 34%

• Yes, money talks more than anything - 30%

• March Madness itself will add an NIL component - 36%