NIL question

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Looking for a link to explain or if you know, feel free to offer the answers:

Johnny gets an offer of NIL to sign with Football U. The offer is accepted and Johnny signs as a freshman or transfers in. Problem is it turns out Johnny cannot crack the starting lineup because that other kid beat him out and now Johnny is second string. Worse yet, johnny cannot hack the academic scene and cannot play on probation. Does Johnny keep collecting his cash?

Is there guarantied money in these deals?
 


Whatever cash journey got up to that point, he keeps. I doubt there are many claw back provisions in NIL deals, and if there were they would be a PR nightmare….

At the same time, there’s absolutely no reason an NIL couldn’t be rescinded at any time.

Also, there’s no reason on the deal couldn’t keep paying. I doubt that very many would for long but there’s no outright restrictions on that.

There are almost no guidelines on exactly how an NIL deal pays or when. Just at the deals have to be reported to the school.
 

Also note that the spirit of NIL is that the money isn't tied to whatever school a recruit signs with. We know that it is turning out to be pay for play. Proving it isn't very easy!
 

I think the key question is this: what would happen if an athlete filed a lawsuit over an NIL deal that was not fulfilled?

as in the OP's scenario: if Johnny accepts an NIL offer from Bill the Booster, but does not receive what he was promised, and sues Bill for breach of contract, that would be very interesting.

theoretically, a court ruling on NIL could at least begin to impose some standards on the current unregulated landscape. but again, it would require someone to file a court case. and given how slowly the court system often operates, it could take a couple of years before a decision was reached.
 


There have been instances where payments have not been made already from my recollection.

Pretty sure there can't be any verbiage in a contract that states they are to sign with a certain school. This is NIL to the collective or company paying for the NIL service.
 

Johnny signs a contract. Likely from Dinkytown Athletics, but could be other private parties within the flimsy, basic guidelines the NCAA has put forth. For example, the U is allowed to say (and does!) that Johnny can’t sign an endorsement deal for alcohol products and he can’t sign a deal with Under Armor (since they compete with Nike, the school’s official sponsor).

But other than that, it’s whatever the stipulations of the contract say.
 

gopherjay said:
Looking for a link to explain or if you know, feel free to offer the answers:

Johnny gets an offer of NIL to sign with Football U. The offer is accepted and Johnny signs as a freshman or transfers in. Problem is it turns out Johnny cannot crack the starting lineup because that other kid beat him out and now Johnny is second string. Worse yet, johnny cannot hack the academic scene and cannot play on probation. Does Johnny keep collecting his cash?

Is there guarantied money in these deals?
Click to expand...

NIL is the wild west right now. Some Universities, like MN ensure that a legitimate transaction takes place. (That it's not just pay-for-play). There needs to be money provided on on side of the transaction and a legitimate service provided on the other side in return for the money. These items must fall in line with compliance measure at the U of M.

In other cases there are people doing more of a pay for play model where adequate services aren't provided for the $$$ being granted, but those Universities are either more okay with the risk, or they'll plead ignorance if asked.

In all of these cases, what the contract says between collective and player is what matters, but keep in mind, the collectives have tons of $$$, where the athletes typically have little. Also, the collectives have lawyers who specialize in this. The players don't.

In any case where there is a fallout between collective and player, the collective obviously has the upper hand in legal experience, the contract being written on their paper, and the funding to fight any potential legal battles.

But for the student athlete, a promise of money even if empty is better than no money (or so it seems at the exciting time an NIL offer is presented).
 

Can NIL disbursements still be made in the form of flashy cars and loose women? 🤔
 



MaxyJR1 said:
There have been instances where payments have not been made already from my recollection.

Pretty sure there can't be any verbiage in a contract that states they are to sign with a certain school. This is NIL to the collective or company paying for the NIL service.
Click to expand...
This is the Jaden Rashada/Florida saga. I'd imagine for every player the "guarantee" varies
 

GoodasGold said:
Can NIL disbursements still be made in the form of flashy cars and loose women? 🤔
Click to expand...
That's actually the only other option aside from cash.

In all seriousness:

One poor kid signed for some garbage pump and dump crypto scam ....
 

With all the TV/Streaming money out there, can the University set aside some for NIL? I’ll hang up and listen.
 

Tech Machine said:
With all the TV/Streaming money out there, can the University set aside some for NIL? I’ll hang up and listen.
Click to expand...
I don't believe the university itself can pay out NIL $.

Thus these very very close NIL relationships with other orgs.
 



Tech Machine said:
With all the TV/Streaming money out there, can the University set aside some for NIL? I’ll hang up and listen.
Click to expand...
Officially no, but that doesn't mean it doesn't happen, and is just laundered through an outside party.
 

Well, that’s a bit wild even for the current times.

I don’t think SEC schools have to even resort to that, because they’re already so successful with their regular NIL. It’s just all the bagmen who have brought the bags over the table.
 

Eventually won’t there have to be a mechanism to ”even out” available money for each school? Major Pro sports have Salary caps in most sports to keep a somewhat level playing field. These huge conferences are going to limit the numbers of “champions” and will cause interest to wane, except for maybe 10-12 teams per year.

Competative balance improved some with the reduction of scholarships, that will be gone in the future and potentially strip interest therefore money from the powers that be.
 

and once again - people use NIL as a single term.

there are two very different forms of NIL.

- the NIL where players actually sell t-shirts, posters, do commercials, sign autographs, etc.......

- and the NIL where Rich Uncle Pennybags hands some HS kid or a transfer a sack of cash.

most players are not going to base a commitment or transfer schools over a few thousand dollars. it's the big money unregulated NIL that is making the difference.
 

The big money is in the endorsements. The "guaranteed" pay for play money is from the collectives....like the trucks for every player, the everybody gets paid plan....and some places all the money is the same-some places it increases by star status from collectives.
But the Caitlin Clarks, Shedeur Sanders etc with millions of dollars is from endorsements they brokered...not the schools' collective.
 

How much Duck Duck beer would I have to drink to actually make a difference? 😵‍💫
 

60's Guy said:
The big money is in the endorsements. The "guaranteed" pay for play money is from the collectives....like the trucks for every player, the everybody gets paid plan....and some places all the money is the same-some places it increases by star status from collectives.
But the Caitlin Clarks, Shedeur Sanders etc with millions of dollars is from endorsements they brokered...not the schools' collective.
Click to expand...

This is correct. Paige Bueckers making 7 figures has to do with her endorsements from major, legitimate companies. Not from a random booster handing her stacks of $100s after a good game.
 

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