🏅Are NIL Contracts "Pay-for-Play"?

Hey there,

Money moves are being made every week in the NIL world, and the last few days weren’t any different. First, we’re looking at ESPN’s bombshell story about NIL contracts… and how they kinda, maybe, probably look like pay-for-play deals. Then, we’ve got big financial news for college athletes that compete in the Olympics. Lastly, NBA star James Harden has given boatloads of NIL money to his alma mater in hopes of funding a contender. Will it work? It’s all coming up now – let’s get into it.

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— Cole, Justin and Collin

The Big 3

Are We Sure NIL Contracts Aren’t Pay-for-Play?

A new ESPN article, which reveals exactly what NIL contracts look like, is making waves in the legal world. In sum, the article essentially proves these contracts are pay-for-play agreements – the very thing the NCAA has been terrified of for years.

There are clear signs within a common SEC NIL contract template that this is the case. For one, the template states that the school is allowed to “reduce or increase an athlete's payment depending on the athlete's playing time or performance.” Another set of contracts, this time from the Big 12, explicitly prohibit players from sitting out of games.

Whether you agree with those terms isn’t the problem – the problem is that it seems like schools are paying for an athlete’s performance – not their name, image, or likeness. And if that’s the case, we could be heading toward court challenges very soon. (More)

College Olympic Athletes Score Big Financial Win

College athletes who compete in the Olympics and Paralympics weren’t allowed to get paid until last year. Now, thanks to a huge donation to pay U.S. athletes, they’ll be seeing much more money for their efforts, specifically after they retire.

Philanthropist Steven Ross is behind the whole thing. His $100 million donation sets the foundation (at least for the foreseeable future) to pay Olympic and Paralympic athletes $200K in retirement benefits. The benefits come in two waves: $100K after they retire from the sport, and another $100K to their families after they pass away.

“The reality is [steady income] is only the top 5%,” said water polo player Kaleigh Gilchrist at the Paris games in 2024, “The rest of us are living paycheck by paycheck.” That’s still true to some degree, but these retirement benefits ease the burden. (More)

NBA’s James Harden is Funding ASU’s NIL Efforts

NBA superstar James Harden admitted to Front Office Sports that he’s spent a ton of money on NIL at his alma mater, Arizona State. He’s just one of the many NBA stars funding their former schools into basketball contention.

ASU’s prized possession is Jayden Quaintance – a former Kentucky commit who de-committed after coach John Calipari’s departure from Lexington, and subsequently, decided on the Sun Devils after Harden’s substantial donation. Of course, Harden’s funding got players like Quaintance through the door.

 “NIL nowadays is the most important thing, because kids want to be compensated for their play and their work,” said Harden, “I wanted to be a part of helping the team and the school get players … and if NIL is the problem, then I can help with that. So, for me, it’s just having their back on my end.” (More)

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ATHLETE SPOTLIGHT

JuJu Watkins

School: USC

Sport: Basketball

Position: Guard

Class: Sophomore

Accolades:
2024 AP First Team All-American.
2024 Ann Meyers Drysdale Shooting Guard of the Year.
2024 All-time national record for scoring by a freshman (920 points)
2024 USC record for most 30+ point games in a season (14).
2024 No. 2 scorer in the nation (27.1 points per game).

Notable Achievements:
Set USC single-game scoring record with 51 points against Stanford.
Broke USC's Galen Center scoring record with 42 points against Colorado.
Set USC single-season record with 241 free throws made.

Current Season (2024-2025):
Averaging 24.2 points, 6.9 rebounds, 3.5 assists, and 2.0 blocks per game.
Shooting 47.3% from the field and 83.3% from the free-throw line.

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2,418 followers

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NIL BLITZ

♦️ Utah’s Athletics Department was just gifted a $14 million endowment for women’s sports

♦️ The House Settlement’s final approval motion was just filed last week

♦️ Are relationships more important than ever in the NIL era?

♦️ Texas’ Michael Taaffe won’t be riding in a Lamborghini after his NIL-backed lease expires

♦️ North Carolina’s “Hard Knocks” deal falls through

♦️ The Atlantic East Conference is launching a women’s flag football season this spring

♦️ House attorneys call the settlement an “intergalactic paradigm shift” due to rev-share changes

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BATTER UP

Today’s Poll Question:

Last Edition’s Poll Results:

Will Texas A&M's deal with Playfly affect their on-field performance?

• Yes, the money flows downward, eventually to the players they're able to recruit - 47%

• No, they've had a lot of money for awhile now and it hasn't changed their on-field issues - 53%