Newsletter, Image, Likeness Vol. 104: The Importance Of Assignment Clauses For NIL Collectives

The Weekly Longer NIL Thought.

There is still no settlement ending multiple antitrust lawsuits against the NCAA (including House v. NCAA). And we won't know until 2025 whether Judge Wilken will provide final approval to the settlement, which has only thus far received preliminary approval.

But that is not stopping schools from preparing for a world where revenue sharing (with a cap but no floor on same) exists.

It's also not preventing NIL collectives from determining that what is often referred to as a boilerplate provision within agreements -- an assignment clause -- is now a material provision that must be a focus of negotiation to the extent that an athlete or his/her representatives push back.

An assignment clause typically clarifies whether any of the parties to an agreement has the right to assign all or a portion of the rights/obligations/duties of a contract to a third party.

NIL collectives should seek an unfettered ability to assign their contracts in full or in part at their sole discretion. Athletes and their representatives should want to ensure that the obligations of the NIL collective, if assignable, are not released or terminated by way of such assignment and that the collective at least remains as a guarantor of the obligation should the third party default.

Why may assignment clauses become so important? Because NIL collectives may seek to shift some or all of their payment obligations to the school if the school is allowed to make direct payments to players under the House settlement (again, if it receives final approval).

NIL collectives should push back on athletes having any capacity to assign their duties and obligations under these agreements.

Those who are proactive with this on new contracts and/or demand addenda to existing agreements could create a competitive advantage for themselves going into Fall 2025.

The Chaotic New Role Of School 'NIL Director'.

"When am I getting paid," is the most common question they receive, says Florida NIL Director Ben Chase , who added, "Every three days I have a call with some third party trying to pitch us the ‘new solution’ for something.” He also said that a group of NIL Directors across the country who regularly meet over Zoom has enough power and influence that they "could easily cancel a company overnight."

Only Care About NIL? Arkansas Isn't Interested In You.

Lobbying Source Compares NCAA Efforts To A Scooby-Doo Episode.

“It’s like a bad end to a ‘Scooby-Doo’ episode,” said a lobbying source about the NCAA’s efforts to persuade Congress to take action. “[It’s like], ‘It’d all be OK if it wasn’t for these meddling kids getting paid.’”

Arizona State Freshman Basketball Player Signs Multi-Year Deal Wth Adidas.

USC's JuJu Watkins Signs With NYX Professional Makeup.

Alabama WR Ryan Williams Signs With Uber Eats.

Job Opening: House Settlement Negotiator And Contract Manager At Minnesota.

Interesting role includes helping with financial sharing models resulting from the House settlement (assuming it receives final approval) and negotiating with prospective athletes and parents as well as agents. This person will work closely with a cap manager to structure contracts within the rules and regulations of the NCAA and conference.

UC San Diego Hires GM To Help Implement And Manage Basketball NIL Program.

Final Thoughts.

That is it for Vol. 104 of Newsletter, Image, Likeness. Thanks to the more than 9,275 people who have subscribed to this newsletter thus far, and please feel free to share this free resource with others on LinkedIn or elsewhere.

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[Feature image Assignment by Nick Youngson / CC BY-SA 3.0 / Pix4free]