NIL, Transfers, and Stratospheric Salaries. What Is the Future of GT Football and College Football in General?

[Root4GT]

An ugly side of NIL is starting to come out:

If this is true that NIL collective likely won't be getting any clients that have NFL potential! It will clearly be used against FLA in recruting if true.

 

[orientalnc]

Fiona Crawley is a rising senior at UNC-CH and leads the tennis team. She recently won three qualifying matches in order to play in the US Open. She played in the first round, losing to the world #11.

She qualified for a cash prize of $81,000.00 based on her level of play in the Open. But, she is not allowed to accept the money if she doesn’t want to forfeit her eligibility to continue to play for UNC.

Yet UNC football and basketball players are getting nil money to play for UNC. If this ain't FUBAR then nothing is.

 

[ThatGuy]

An ugly side of NIL is starting to come out:

This sort of thing has been going on in baseball for a long time. The "sponsor" pays money up front to a lot of athletes, and if 1-2 of them make it big, they recoup their spend plus profit. It helps the athletes who need the cash immediately. But I can see how in retrospect it would seem like a bad deal.

The question on most reasonable people's minds: how could you "not be aware" of that clause? Did you think that they were just throwing money at you for nothing, or can you just not read? I imagine even most "joke" NIL contracts have something by way of appearances you're required to do, just to guard against legal ramifications for the boosters.

 

[g0lftime]

This sort of thing has been going on in baseball for a long time. The "sponsor" pays money up front to a lot of athletes, and if 1-2 of them make it big, they recoup their spend plus profit. It helps the athletes who need the cash immediately. But I can see how in retrospect it would seem like a bad deal.

The question on most reasonable people's minds: how could you "not be aware" of that clause? Did you think that they were just throwing money at you for nothing, or can you just not read? I imagine even most "joke" NIL contracts have something by way of appearances you're required to do, just to gsuard against legal ramifications for the boosters.

The reality is that most of these kids do not see any value of the education, coaching, physical fitness, etc that the schools provide. It's all about getting paid to play. It's not college football anymore. It's all about who will pay me the most and just passing through to the next level. The education means nothing. It's a necessary evil to stay eligible.

 

[TooTall]

Fiona Crawley is a rising senior at UNC-CH and leads the tennis team. She recently won three qualifying matches in order to play in the US Open. She played in the first round, losing to the world #11.

She qualified for a cash prize of $81,000.00 based on her level of play in the Open. But, she is not allowed to accept the money if she doesn’t want to forfeit her eligibility to continue to play for UNC.

Yet UNC football and basketball players are getting nil money to play for UNC. If this ain't FUBAR then nothing is.

That's not NIL. That's winnings. If she wants the money, do what all (some to most) female college athletes are doing: pose in a bikini and post it on social media. Do it again. Do it again. Become famous. More bikini pictures. More pictures from behind. Become an icon. Complain that your objectified. More bikini pictures. Make more money. Welcome to the "modern woman".

 

[g0lftime]

That's not NIL. That's winnings. If she wants the money, do what all (some to most) female college athletes are doing: pose in a bikini and post it on social media. Do it again. Do it again. Become famous. More bikini pictures. More pictures from behind. Become an icon. Complain that your objectified. More bikini pictures. Make more money. Welcome to the "modern woman".

Paige Spirnac makes more money than most of the LPGA players without having to travel all over the world. It helps to be very attractive and not afraid to show off her figure. She is a very good golfer but not top tour quality. Another internet sensation.

 

[roadkill]

Heisman Trophy winner Caleb Williams is considering going back to school in 2024 if his prospective NFL draft is too high. Why would he consider this? NIL money is available, and he doesn’t like the prospect of going to a bad team. https://theathletic.com/4839276/202...s-gq/?source=pulsenewsletter&campaign=7624649

Now that’s an interesting unintended consequence of NIL.

 

[RonJohn]

An ugly side of NIL is starting to come out:

I don't think this is an ugly side of NIL. I think this is just an example of what can happen if you don't pay attention to contracts before you sign them. "Big League Advance Fund"? They provide "advance funds" to kids at multiple schools and even to kids who play minor league baseball? If Dexter didn't understand what was going on, that shows that he paid very little attention.

 

[Techster]

I don't think this is an ugly side of NIL. I think this is just an example of what can happen if you don't pay attention to contracts before you sign them. "Big League Advance Fund"? They provide "advance funds" to kids at multiple schools and even to kids who play minor league baseball? If Dexter didn't understand what was going on, that shows that he paid very little attention.

I think what you're saying is certainly true. Caveat emptor...always. I think the point is these kids are 18, and probably come from backgrounds that are not sophisticated in reading contracts and its ultimate outcome. There will buy NIL groups like this one that will prey on SAs who don't know any better. It will be hard lesson for a lot of kids, and it seems in this case there seems to be legal recourse for nullifying the contract. Hopefully, these SAs pay attention to this case and ask all the right questions and get legal counsel to review contracts (which they can pay by the hour) before signing anything.

 

[RonJohn]

I think what you're saying is certainly true. Caveat emptor...always. I think the point is these kids are 18, and probably come from backgrounds that are not sophisticated in reading contracts and its ultimate outcome. There will buy NIL groups like this one that will prey on SAs who don't know any better. It will be hard lesson for a lot of kids, and it seems in this case there seems to be legal recourse for nullifying the contract. Hopefully, these SAs pay attention to this case and ask all the right questions and get legal counsel to review contracts (which they can pay by the hour) before signing anything.

If the athletic associations actually care about the student-athletes as people and not just as cattle to perform athletic entertainment work, they should go out of their way to teach them how to manage contracts, taxes, and money. I know that neither a coach nor an athletic association can teach contract law, tax law, nor good money habits in an hour, or even in a couple of years. They could provide access to seminars and information. They could provide warnings about watching out for people who try to take your money instead of give you money. I have not been involved in any way, but it just appears to me that too many believe that if they can purchase a Hellcat, then everything is great. Even if it is obvious to other people that they are going to be broke before they leave school with tens of thousands of debt to the IRS. You can't prevent other people from doing stupid things with money, but you can provide guidance. If you provide mentoring and guidance and the person still does stupid things and gets into trouble, then that is on them.

 

[Techster]

If the athletic associations actually care about the student-athletes as people and not just as cattle to perform athletic entertainment work, they should go out of their way to teach them how to manage contracts, taxes, and money. I know that neither a coach nor an athletic association can teach contract law, tax law, nor good money habits in an hour, or even in a couple of years. They could provide access to seminars and information. They could provide warnings about watching out for people who try to take your money instead of give you money. I have not been involved in any way, but it just appears to me that too many believe that if they can purchase a Hellcat, then everything is great. Even if it is obvious to other people that they are going to be broke before they leave school with tens of thousands of debt to the IRS. You can't prevent other people from doing stupid things with money, but you can provide guidance. If you provide mentoring and guidance and the person still does stupid things and gets into trouble, then that is on them.

Nothing I disagree with there. Schools definitely need to be more proactive with how NIL is being administered under their umbrella, and help steer the kids in the direction that's in their best interest.

 

[roadkill]

This sort of thing has been going on in baseball for a long time. The "sponsor" pays money up front to a lot of athletes, and if 1-2 of them make it big, they recoup their spend plus profit. It helps the athletes who need the cash immediately. But I can see how in retrospect it would seem like a bad deal.

The question on most reasonable people's minds: how could you "not be aware" of that clause? Did you think that they were just throwing money at you for nothing, or can you just not read? I imagine even most "joke" NIL contracts have something by way of appearances you're required to do, just to guard against legal ramifications for the boosters.

Agree.
This deal is being described as a NIL deal subject to certain laws in the state which make his type of arrangement illegal, thus the lawsuit. I find this (the illegality) hard to fathom. According to reports, the company has raised over $400M in venture cap and has been doing deals for several years. I imagine the deals are set up to comply with existing laws.

The company puts its capital at risk and gets nothing back if the athlete gets injured before going pro or otherwise fails to make it in pro sports. On the other hand, they certainly could be accused of taking advantage of young athletes who don’t understand the NPV of the deal should they become a high draft pick. I know I would have been tempted to take the upfront $$ when I was 18-19, regardless of the consequences.

 

[forensicbuzz]

This doesn't really seem like an NIL deal.

 

[RonJohn]

This doesn't really seem like an NIL deal.

I think the majority of "NIL" deals related to football have nothing to do with providing compensation for a player's name, image, or likeness. You see a few billboards that do. There are some events for autographs, etc that do. I might be wrong, but I got the impression that the GT NIL group paid the players to participate in fan day autographs this year. If you get outside of football and men's basketball, the athletes actually advertise or participate in things like private videos for kids' birthdays, etc. I am not advocating for direct payments for play, but that is what is happening.

EDIT: Also, I don't think I would want deals like this one restricted from a rules standpoint. This is much more like insurance against an injury, only it is insurance against not succeeding as a pro athlete. I think it is a very dumb idea to purchase failure insurance, but don't think it should be illegal or against the NCAA rules. (I don't think people should take out payday loans, but that doesn't mean they should be prevented from doing so.)

 

[awbuzz]

If this is true that NIL collective likely won't be getting any clients that have NFL potential! It will clearly be used against FLA in recruting if true.

Assume no one put a gun to his head when he signed the contract. He didn't have to sign it, but thought the goose laying golden eggs doesn't have to be fed too.

 

[cpf2001]

Blatantly not NIL if it’s in exchange for future cash considerations not endorsement or such, IMO. I don’t know FL specifically but could imagine a state having narrow restrictions about what NIL is since it’s been state by state piecemeal so far. Eg I think Texas has a vice clause.

This company should just call it a student loan if they get in trouble, there have been things like coding boot camps with similar sort of finance arrangements with no issues. And more honest to boot!

It’s a bit of a gold rush situation so I’m sure there’s a bunch of scams and ripoffs in the are right now, just like with crypto and other new crap before it.

 

[forensicbuzz]

I think the majority of "NIL" deals related to football have nothing to do with providing compensation for a player's name, image, or likeness. You see a few billboards that do. There are some events for autographs, etc that do. I might be wrong, but I got the impression that the GT NIL group paid the players to participate in fan day autographs this year. If you get outside of football and men's basketball, the athletes actually advertise or participate in things like private videos for kids' birthdays, etc. I am not advocating for direct payments for play, but that is what is happening.

EDIT: Also, I don't think I would want deals like this one restricted from a rules standpoint. This is much more like insurance against an injury, only it is insurance against not succeeding as a pro athlete. I think it is a very dumb idea to purchase failure insurance, but don't think it should be illegal or against the NCAA rules. (I don't think people should take out payday loans, but that doesn't mean they should be prevented from doing so.)

This deal is what agents do. They front the money and then get it on the backside. That is absolutely against NCAA rules. That is an absolute revocation of eligibility and UF would have to forfeit all of the games the ineligible player participated in. We know the NCAA has been neutered, but this is a clear violation of the rules.

 

[RonJohn]

This deal is what agents do. They front the money and then get it on the backside. That is absolutely against NCAA rules. That is an absolute revocation of eligibility and UF would have to forfeit all of the games the ineligible player participated in. We know the NCAA has been neutered, but this is a clear violation of the rules.

The NCAA is not enforcing the NIL rules at all. As I said before, most football and men's basketball "NIL" deals are not about anything related to using the name, image, or likeness of the athlete for any business purpose. They are simply paying the athletes.

Agents do more than simply front money. Agents market the athletes and represent the athletes in contract negotiations. I don't know what the agreement in this case was, but it sounds a lot more like insurance against failure. Many athletes get money upfront and then only repay if they make it big in professional sports. I know that the NCAA has allowed athletes to purchase income insurance for injuries. I believe they have even allowed schools to pay for that insurance, with limits based on actual or reasonable income projections. I don't see what problem the NCAA should have with this company if they are not representing the athletes as professionals, but simply paying them up front for a cut on the backend if they are successful. I don't think it should be something that the NCAA would worry about or get involved in. On the other hand, this business seems a lot like payday lenders. It appears to me that it targets poor people who don't know any better and traps them. (This contract traps him for 20 years and payday lenders trap people into a spiral of never-ending borrowing and interest charges) I don't like either business types. I think both are predatory. I think the same thing about casinos.

 

[roadkill]

The NCAA is not enforcing the NIL rules at all. As I said before, most football and men's basketball "NIL" deals are not about anything related to using the name, image, or likeness of the athlete for any business purpose. They are simply paying the athletes.

Agents do more than simply front money. Agents market the athletes and represent the athletes in contract negotiations. I don't know what the agreement in this case was, but it sounds a lot more like insurance against failure. Many athletes get money upfront and then only repay if they make it big in professional sports. I know that the NCAA has allowed athletes to purchase income insurance for injuries. I believe they have even allowed schools to pay for that insurance, with limits based on actual or reasonable income projections. I don't see what problem the NCAA should have with this company if they are not representing the athletes as professionals, but simply paying them up front for a cut on the backend if they are successful. I don't think it should be something that the NCAA would worry about or get involved in. On the other hand, this business seems a lot like payday lenders. It appears to me that it targets poor people who don't know any better and traps them. (This contract traps him for 20 years and payday lenders trap people into a spiral of never-ending borrowing and interest charges) I don't like either business types. I think both are predatory. I think the same thing about casinos.

While you and @forensicbuzz make good points, I don't think the deal was postured as either insurance or NIL. It's pitched as an advance against future earnings. The results of his litigation will be interesting.
The deal was signed prior to his 2022 season. Since it's now public, the NCAA can't just pretend they didn't know about it. But as long as it wasn't used as a "pay for play" at Florida or a recruiting inducement, they may not see a problem since it wasn't directly associated with the university.

 

[eetech]

The only way to get caps on a salary is to have the players form a union and have a collective bargaining agreement in place. That's not going to happen soon, in my opinion, unless there is a divestment of the revenue sports from the university.

Which is why it sucks that the last decade or so the NCAA was led by an SEC clown. Someone smarter would have encouraged the players to form a union and negotiated a CBA so college football could have remained a competitive 120 team league.

Instead we have a ridiculously lopsided system thars reduced to about 10 viable teams if I’m being generous that has landed only slightly more unique teams in the 4 team playoffs than the NFL has landed in the 2 team Super Bowl.