NIL > NFL Draft? Plus an NIL fueled Heisman Campaign

Hey there,

We’re back again! Glad you’re still with us. You may think we just gave you all the good stuff in these first two editions, but believe me, there’s a ton of NIL news always coming in. Today’s edition is no different.

Could NIL actually deter players from entering the NFL draft? What’s so unique about Iowa’s NIL collective? And is Congress going to actually do something about NIL? We’ve got those stories, and more, right below.

So here’s the thing: We want to hear back from you. Whether it’s our content, our visuals, or your own thoughts — feel free to give us feedback on anything and everything about our newsletter. Hit reply or send us an email at [email protected].

— Cole, Justin and Collin

NIL > NFL?

The hype surrounding Colorado’s football team has already hit historic proportions. Coach Prime’s recent 2OT win over Colorado State became the fifth most viewed college football game in ESPN history – in large part because people couldn’t resist tuning into Shedeur Sanders’ QB masterclass. As a result, NIL money seems to fall from the sky in Boulder.

Despite being on NFL draft radars, Shedeur’s NIL success has prompted many to hypothesize that his financial prospects could be better if he stayed in school for another year. “It’s not as cut and dry as it used to be because of NIL” Fox Analyst Joel Klatt said on The Herd, “I think Shedeur might be able to make $10 million.” For comparison, last year’s #1 overall pick Bryce Young just signed a contract worth about $9.5 million per year. (More)

Time is Ticking…

It’s been a busy week in Congress, and no one seems to know when NIL legislation is coming. Some are optimistic, like Sen. Ted Cruz (R-TX), who said “I think the odds are 60-40 we get it done.” Sen. Chris Murphy (D-Conn) wasn’t quite as bullish, though. “The chances… are less than 50-50 that Congress does something comprehensive in the short term,” he said.

All the while, pressure is mounting from all sides for government intervention. College officials descended upon Washington this week with hopes for meaningful discussions on how to regulate NIL.

“Trust me, I never wanted to come to the federal government to ask for help,” said Ohio State Athletic Director Gene Smith. His concerns are shared by many who still see NIL as a “wild west” landscape. (More)

 Tech-NIL-logical Advancements

From the moment NIL became legal, it’s been on a collision course with the rapidly expanding capacities of the tech world. This week, they finally collided.

Fan Inc. just announced an app that’s supposed to help “athletes and fans connect in a social-like experience.” That was a bit vague for me, so I just downloaded the app to see for myself.

The app essentially allows you to pay student-athletes directly, whenever you want. Fans simply click on a profile, select an amount of money they want to give, and then give the athlete that money. There’s also a “digital trading card” component on the app, where fans can purchase and exchange 3D tokens of athletes. (More)

In Order to Form a More Perfect Union

If there’s one thing for certain here, it’s that the Ivy Leaguers at least did their homework (shocking, I know). The letter walks readers through some of the recent legal history around athlete compensation, and even cites Justice Brett Kavanaugh’s concurring opinion which argues college sports as currently constructed violates anti-trust laws, saying “the NCAA business model would be flatly illegal in almost any other industry in the United States.” (More)

Study Up

The University of South Florida just announced a new course designed to teach the ins and outs of NIL. The self-paced course is designed for student-athletes, parents, and administrators, offering modules such as “Maximizing Social Media” and “The Anatomy of an NIL Deal”.

“This program is one tool in the toolbox to help student-athletes navigate the ins and outs of NIL and playing at the college level, regardless of which sport they play,” USF community partnership assistant VP Mark Koulianos said of the course, “Understanding the anatomy of a deal can help people avoid entering into a bad deal.” (More)

Attached at the Hip

During a legislative hearing this week, the relationship between schools and NIL collectives came under scrutiny. At one point during the hearing, collectives were described as “fan clubs” for the school; another time, attorney Madeline Salamone characterized them as “essentially extensions of the school.”

These relationships matter a lot, legally – We’ve already seen skepticism arise around Title IX issues, as we discussed last edition. Collectives will soon need to answer the question once and for all: Are you a separate entity, or part of the school? Their treatment under the law will vary dramatically based on the answer. (More)

Dealer’s Choice

Iowa’s Swarm Collective is putting spending power back into donors’ hands. They’ve recently expanded their NIL offerings, allowing financial support for each Hawkeye sports team. Moreover, if donors give a minimum amount, they can actually choose which sports their money goes toward.  

That’s a huge change, and it could help avoid some legal trouble. Instead of Iowa’s collective spending on primarily football, this system allows the donors themselves to pick where their money goes.

Of course, it will still mostly go to football – but the key is that the donor makes the decision instead of the collectives and schools. That shift in decision making could be a crucial work around play for collectives and schools fearing an impending Title IX NILpocalypse. (More)

Go Vote Bo

With NIL, Heisman campaigns are starting to look a lot like political campaigns. Brand recognition has never been more important, and it just so happens that it’s now completely legal to pour even more money into such a campaign. Ducks QB Bo Nix’s camp understands this, which is why we saw billboards with “Bo-Dacious” plastered around the country last month.

But it seems the Nix campaign is just getting warmed up. Oregon’s Division Street collective just released exclusive “Bo-Dacious” NIL t-shirts to help boost the QB’s brand even further. It’s all upside, too: If Nix plays well against Colorado’s hype-machine today, his current +2200 Heisman odds could skyrocket. (More)

Sadie Engelhardt

Would you believe me if I told you there were high school students signing NIL deals with New Balance?  Running standout Sadie Engelhardt did precisely that on Wednesday, becoming one of two high school women to sign a deal of this kind.

Her career speaks for itself: She snagged her first national title as a sophomore, which probably caught New Balance’s eye considering they sponsored that specific race. From there, Engelhardt became one of the premier middle-distance runners in the country, ranking #1 in the 1,600m and #3 in the 3,200m.

New Balance has taken a measured approach when it comes to the high school space, not hitching their wagon to many athletes without assurance of their dominance. Engelhardt’s resume seems to have won them over at last. (More)

♦️ Georgia’s Kirby Smart isn’t a fan of NIL recruits, wants “hungrier” ones

♦️ Colorado sees record-breaking NIL sales after recent wins

♦️ Utah’s NIL Store launches

♦️ Travis Hunter re-ups his deal with Celsius

♦️ Small businesses in Tempe are thriving because of NIL

Todays Poll Question:

Last Edition’s Poll Results:

Should Title IX rules apply to NIL Collectives?

• Yes - 81%

• No - 19%