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🏅 NIL Collectives are Marketing Agencies Now

May 30, 2024

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Hey there,

We’ve got a packed-out edition for today, including a discussion on how collectives are shifting gears post-House settlement, how “old school” coaching may be dying out thanks to NIL, and more. Just keep scrolling to catch up on everything NIL!

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— Cole, Justin and Collin

KICK-OFF

Union Head Sees House Settlement as a Band-Aid

You might think that the Dartmouth basketball team, who famously unionized during the 2023-2024 season, would be in favor of the House settlement – which will pay out athletes billions of dollars. As it turns out, the union’s president isn’t a big fan of the agreement because it doesn’t provide a long-term solution to the problem.

“The attempt at a revenue-sharing workaround only supports our case that the NCAA and Dartmouth continue to perpetuate a form of disguised employment,” said SEIU Local 560 president Chris Peck. He then reiterated his belief that the NCAA will “do everything it can to avoid free market competition.”

Peck insists that the House settlement is more like a band-aid than anything. According to him, the NCAA can’t put a salary cap on paying players without collectively bargaining for that position. Their refusal to do so could open them up to antitrust lawsuits yet again. (More)

Third-Party Money Won’t Count Toward Salary Cap

According to the terms of the House settlement, NIL compensation conducted through a third party does not count toward the salary-capped compensation that will be provided through schools. That means all money earned from “true” NIL deals – sponsorships and promotional partnerships with businesses – does not diminish what the school can offer athletes.

The money the school will pay athletes – $20M per year is the cap for that – is not technically NIL, but comes from the revenue share tied up in TV money. That means NIL payments can still take a player’s value much higher than what a school is willing to pay them.

As we’ll discuss later in this edition, collectives will shift their focus toward marketing now instead of roster building. The “general manager” position will be brought almost entirely in-house, and the schools will function organizationally somewhat like a professional sports team. (More)

Coaching Hard? No Problem at Michigan State

Thanks to NIL, hard-nosed coaches are slowly becoming a thing of the past. With transfers at an all-time high, many coaches are becoming more “player-friendly” – essentially easing off of their coaching intensity so as not to scare away any players. Well, at Michigan State, that’s simply not happening.

“I told our staff we’re not going to coach afraid of the portal,” said Adam Nightingale, who coaches the school’s ice hockey team, “Coach how we believe kids need to be coached. Hold them accountable, hold them to a high standard. We’re not going to beg anyone to come to Michigan State.” 

Coming off of a Big 10 conference championship in 2024, Nightingale has already shown his coaching style works. Whether or not that outweighs other considerations, like player-friendliness, has yet to be determined. (More)

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WHAT’S TRENDING

Ups and Downs

DOWN TO BUSINESS

Minnesota is Wooing Corporate Donors

Many schools took notice when the University of Memphis secured a $25M NIL donation from FedEx. Now, the University of Minnesota is trying desperately to lure corporate sponsors to support their own NIL program.

Enter Brett Schreiner, the school’s new senior manager for NIL business development. Due to the university’s favorable location – right in the heart of the Twin Cities – there’s NIL business potential with multiple Fortune 500 companies such as Target, 3M, and Best Buy.

The main goal is to convince these massive companies that influencer marketing actually works. If the university can convince corporations that the aggregate of Minnesota’s college athletes can be more valuable than landing some big-ticket pro athletes, then they might have a chance for a big deal. (More)

  • How can pro softball expand its audience? That’s the potentially million-dollar question that’s holding back NIL valuations in college.

  • The New York Times put together a detailed timeline tracking athlete compensation in college sports, which stretches back to the early 1900s. It’s a must-read for a long-view picture of NIL from the legal point of view.

COLLECTIVE 101

NIL Collectives Are Becoming Marketing Agencies

Considering NIL collectives don’t need to operate as a financial middle-man for paying athletes anymore, what’s going to happen next for school collectives? Well, their role could change in a variety of ways but don’t expect their influence to completely dissipate. 

Some schools, like Ole Miss, have already begun the transition toward turning their collective into a marketing agency – distinct from the school itself but funded directly by the university.  This way, the infrastructure that they’ve been building for a few years can seamlessly transition to their next phase.

“Our major gift donors will be thrilled to death with it,” said Walker Jones, who runs Ole Miss’ collective, “Now, the money, instead of only coming from John Doe’s pocket, also comes from the university. We then go hunt out deals for the athletes and get them active in the community to satisfy [NIL agreements].” (More)

  • LSU’s AD Scott Woodward says that LSU will “thrive” paying athletes, although he prefers the old days. Despite his personal feelings about NIL, the Tigers have built one of the best NIL programs in the country.

  • The Texas One Fund just signed a partnership with Nicholas Air, a private jet company. The company signed Longhorns QB Quinn Ewers to a deal earlier this year.

ATHLETE SPOTLIGHT

Travis Hunter

  • School: University of Colorado 

  • Sport: Football 

  • Class: Junior 

  • Accolades: Named Preseason All-Pac-12 by the league’s media at three positions, being first-team at defensive back, and all-purpose and honorable mention at wide receiver. Recorded 57 receptions, 721 yards, and five touchdowns on the offensive side of the ball. Had 30 total tackles and tied for the team lead with three interceptions. Consensus First-Team All-American. First-Team All-Purpose (AP, AFCA, FWAA, SI). First-Team Athlete (Sporting News).

  • NIL: Travis Hunter’s biggest NIL deals are with EA Sports, Leaf Trading Cards, and Freeform Sports. 

NIL BLITZ

♦️ Penn State hires wrestling-specific NIL director

♦️ Kirby Smart on the Rashada lawsuit: “I’m not going to get involved”

♦️ Five-star tackle prospect values a “balance” between NIL and coaching fit for his recruitment

♦️ Coastal Carolina names an NIL GM

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BATTER UP

Today’s Poll Question:

Will directing funds toward collectives as marketing agencies be an effective use of money for Universities?

Login or Subscribe to participate in polls.

Last Edition’s Poll Results:

Should the court consider Shilo Sanders' NIL earnings in his bankruptcy proceedings?

  • Yes - 72%

  • No - 28%

❝

“Our major gift donors will be thrilled to death with it… Now, the money, instead of only coming from John Doe’s pocket, also comes from the university.

Ole Miss’ Walker Jones on the NIL collective being funded by the university