College World Series, Capitol Hill & Donor Fatigue | NIL Blitz: Jun. 10 - Jun. 16

Welcome back to another edition of the NIL Blitz.

If you aren't much of a reader and are looking for a new way to consume your NIL news, you're in luck!

Opendorse partners will now be able to pre-listen to the NIL Blitz in podcast form. The pod will be sent out on Fridays, allowing exclusive access to get up to speed ahead of the written Blitz on Mondays. (Shoutout to Michael Murakami and Daniel Pearson for the vision and hard work to bring it to life!)

Thrilled to see this in a new medium!

--

1. The Deal with Donor Fatigue? ??
2. Good Sign for NCAA from Capitol Hill ??
3. CWS x NIL ??
4. Financial Risks with NIL ?
5. Case Study: Pitching Yourself ??

--

1. The Deal with Donor Fatigue? ??

In any article related to collective fundraising you are bound to catch a line, read a quote, etc., tied to the concept of "donor fatigue". How real is it?

Let me preface by saying fundraising is not easy. If you've done it before then you know that to be true. It takes a real investment in time and a commitment to the right timing. You need to learn what the priorities of a prospective contributor are appropriately ask when it makes sense.

I spoke with a few people last week whose full-time job is fundraising for their athletics department and the comments were insightful. Most comments pointed away from NIL to things like post-COVID philanthropic struggles, the current economy, and generational gaps. "I do think that in general it is getting harder to find dollars," one fundraiser said. "Some of 'standbys' who have been supporting universities for years are stepping up to cover the gap that's been created by fewer new donors." Altogether, while this may not show a change in total dollar amounts it is, in fact, lower donor participation.

I draw this comparison because collectives are often blamed for double dipping in athletics fundraising. The day-to-day mission of a collective fundraiser and university fundraiser are the same - and their contact list is, too. We've seen a lot of success from collectives whose relationship is lockstep with their university.

For example, I had another director of major gifts tell me there was a decision from their AD which led to any and all inbound calls including the line, "our biggest need right now is NIL; if you want to help our student-athletes, please contact our collective at this number". In their words, this allowed them to prevent repeat asks which could harm the growth of donor relations.

All of that to say - I have heard in many different words the challenges that exist in fundraising. No doubt about it.

But as of today, the data shows no signs of it. On the NIL front, collectives budgets were up double-digit growth last year and will meet or exceed that this year; with some even doubling their budgets from the previous season. On the athletics side, athletics department donation statistics show FBS institutions have 13% growth from the prior academic year. The money keeps going up.

Nonetheless, there are great ways collectives are combatting the real / perceived fatigue. As discussed previously, it is crucial to understand what contributors are interested.

Is it events? Then give them an experience. Georgia Southern's Eagle Nation Collective did this with their GATA Jam this summer where thousands turned out for Cole Swindell's show - many of which likely would not have been contributors in the first place.

Is the fanbase interested in content? Then give them access. UConn's Storrs Central has become the ticket behind the curtain for Huskies fans in collaboration with their two-headed collective of Bleeding Blue for Good and the D'Amelio Huskies Collective.

Fundraising isn't a new concept and it isn't new to college sports either. I think it is time we give credit where credit is due to the folks who have been high achievers instead of pointing a finger to blame.

2. Good Sign for NCAA from Capitol Hill ??

Pun intended, this one is from Rep. Bob Good (R-VA).

Last week, the House Committee on Education & the Workforce met to discuss the merits of the “Protecting Student Athletes’ Economic Freedom Act.” (Interestingly, Rep. Good (R-VA) was a former Senior Associate AD at Liberty University.) This is a federal bill which was introduced to prevent student-athletes from being deemed employees. Ahead of the markup session, the Power 5 Conferences released a joint statement in support of it.

The bill itself - H.R.8534 - is less than 400 words in length and is expected to be more or less a "rider", sneaking onto other legislation to accomplish the larger goal.

There are some different legal analyses of what it could lead to, including from the co-counsel on the current Johnson v. NCAA case which is actively seeking for college athletes to be deemed employees.

An aspect of the proposed House v. NCAA settlement calls for plaintiffs agreeing to lobby on behalf of NCAA’s effort seeking Congressional protections - in retrospect this could be the first step.

At the conclusion of the meeting, the committee approved the bill. Though it is the furthest any of the dozen-plus college athletics related bills has progressed in the last half decade, there is still more to come before it reaches the House floor for vote.

Listen to the full meeting here and keep an eye out for upcoming action.

3. CWS x NIL ?

The Men's College World Series is underway and NIL was center stage before anyone even took to the diamond.

Tennessee's collective, the Volunteer Club, outfitted their entire team with custom sherseys to fit the occasion. The shirts then went on sale and proceeded to sell out in several sizes.

As the Vols continued to roll, a handful of media outlets picked up on NIL tangential stories. Here are a few keys:

• "The top 25 NIL earners in baseball are making an average of $45,000 per year."
• "The average estimated annual NIL spending per SEC baseball team was $820,000 to $920,000"
• "The average NIL spending in the ACC is half that of the SEC but still ranks second among all conferences."

In a series that is the tale of two conferences, this makes all the sense. Read more from both the AP and the Omaha World Herald.

4. Financial Risks with NIL ?

A conversation came up last week related to athlete public liability insurance and I have some thoughts to share. The comments largely surfaced around this On3 article from earlier in the spring.

Though I don't blame any insurance wholesalers from getting ahead of the curve (I mean, it's their job right?) I also don't disagree that theses supposed "scare tactics" couldn't happen. By now I'm sure you may have seen this tweet showcasing Texas football's official recruitment day and it made me think about this whole concept some more, too. It's publicized a good deal that college athletes are enjoying luxury cars and I was even told by a former Heisman finalist / current NFL QB that he "hated" how much of a "target" it puts on his back when driving around his college town. The security threat out matched the luxury.

In the financial space too, this was a recent issue for Shilo Sanders. In high school, it was reported that Sanders assaulted a school official and was taken to court and charged to pay a whopping $11M. Hard to know exactly what he's made in NIL but most everyone believes it is anywhere near that much. I don't see this being the last of its kind of issues.

I do think a very negative consequence to athletes earning large amounts of money at such a young age and spending it the way that is perceived does not set them up for a great life after their sport. In fact there are studies out there that show by the time ex-NFL players have been retired for two years, 78% of them have gone bankrupt or are under financial stress; within five years of retirement, an estimated 60% of former NBA players are broke. The solution is not to prevent athletes from making money, but to ensure athletes have access to the right resources and education to navigate newfound wealth.

All that to say, if there is insurance protection for these cases coupled with education then it sounds like a positive for all parties.

5. Case Study: Pitching Yourself ??

A fun one to round us out - Richie Murphy, a Division III football player at UW-Stout, went on a quest to ask 100 different companies for NIL deals.

He documented it on LinkedIn and, without spoiling it, you can find it here.

--

Thank you for reading today's Blitz and for joining 850+ others in subscribing to stay up-to-date every week!