Newsletter, Image, Likeness Vol. 115: Would Judge Wilken Waiting To Rule On The House V. NCAA Settlement Cause Chaos In College Sports?

The Weekly Longer NIL Thought.

If you're reading this newsletter, you're likely aware that Judge Claudia Wilken has provided preliminary approval to a settlement that would end 2 pending class action lawsuits against the NCAA (often collectively called House v. NCAA).

Judge Wilken has scheduled a hearing for April 7, 2025, to discuss the possibility of providing final settlement approval.

Judge Wilken may decide to reject the settlement or not rule on it from the bench. The latter scenario could cause chaos in college sports.

College football players currently benefit from 2 annual transfer portal windows wherein they can enter their names into the NCAA's transfer portal and thereafter move institutions without having to sit out a year to play for their new schools.

In 2025, those 2 windows are: (a) April 16-25; and (b) likely a period in December.

Suppose Judge Wilken rejects the settlement agreement before April 16. In that case, athletes who previously signed NIL revenue-sharing agreements with institutions contingent on Judge Wilken approving the settlement can transfer if third-parties (i.e. NIL collectives) do not quickly pick up the slack for the promises that schools conditioned on the settlement being confirmed. It's not optimal, but at least athletes will have a choice.

If Judge Wilken does not reject or confirm the settlement before the close of the April transfer portal and instead takes it under further advisement, later deciding to reject it, athletes may be "stuck" in situations where they have committed to and enrolled at schools that have no obligation to pay the athletes what they thought they were promised, because the revenue sharing agreements are largely ineffective without Judge Wilken's signing off on the settlement agreement. It is reasonable to believe schools will quickly scramble to cause their collectives to prepare, deliver, and enter into agreements that closely mirror the revenue-sharing contracts that had been signed. But what if some collectives can't carry that burden? What if there is a belief that a player is overvalued? The reality is that the athletes lose a lot of leverage in this situation because, unless the NCAA establishes a new special portal window or changes its rules to allow direct payments from schools to players in place of the settlement being approved, their movement and rights may be restricted.

There's also the possibility that the athlete is enrolled at a school in a state that has enacted a law or signed an executive order that allows the schools in that state to pay players directly. In such circumstances, the school may still be willing to pay the players even though the NCAA may not be on board.

In sum, Judge Wilken's decision is bound to have a major impact no matter how or when she rules. But I thought the aforesaid was worth mentioning, given that I haven't seen any discourse surrounding it to date.

Former Head Of NBPA May Submit A Dissenting Opinion On House Settlement.

It's Been A While, So Here Comes The Talk About Congress Stepping In Once Again.

Sen. Richard Blumenthal says he's close to finalizing a "very strong discussion draft" of new NIL legislation that purportedly has bipartisan support.

Oklahoma Governor Doesn't Wait For House Settlement Approval To OK Schools Paying Players Directly.

Illinois Bill Seeks To Penalize High-Earning NIL Athletes?

The bill intends to make it so that "If a student-athlete earns more than $250,000 from the use of the name, image, likeness, or voice of the student-athlete, then any academic scholarship granted to the student-athlete shall be reduced by $1 per dollar the student-athlete earns over $250,000."

Oklahoma Bill Looks To Require Financial Literacy Workshops.

Oregon State's NIL Package For Former Duke QB Maalik Murphy Is Reportedly $1.5 Million.

Clemson Collective Seeks To Cease Operations If Revenue-Sharing Starts Fall 2025.

Agent's Comment That 'Pretty Much Every NIL Agency Charges 20%' Receives Major Pushback.

Carson Beck's Agents Say He's Received Roughly $10 Million In NIL Deals This Past Year.

Trent Dilfer Is Displeased That Players Are Making More Money Elsewhere.

Final Thoughts.

That is it for Vol. 115 of Newsletter, Image, Likeness. Thanks to the more than 9,540 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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