Newsletter, Image, Likeness Vol. 21: Go Gators, Go Dawgs, And Other Congressional Chatter

The Weekly Longer NIL Thought.

On March 29, Congress hosted its 8th hearing on NIL.

The quote of the hearing came from College Football Players Association Jason Stahl , who said that the federal government should stay out of the NIL free market. He added that college sports' problems aren't so large that they can't be solved by those in the industry.

Congress will likely stay on the sidelines, which was a key takeaway from listening to the almost 3 hours of discussion that far too often centered on wherever the legislators went to school.

It did not take long to realize that the hearing really wasn't about protecting NIL rights, but instead focused on pushing hard against the concept of recognizing college athletes as employees (with the athletes in attendance strongly opposing employment status), seeking access to contract clauses (I suppose, even though brands generally require confidentiality provisions), health and safety issues (absolutely a concern, but unrelated to NIL), and making conclusory allegations that different state laws created an untenable system. Oh, and a lot of talk about guardrails.

So, where did we start? The hearing began with Representative Gus Bilirakis (of my home state of Florida) stating his concern about money going to athletes instead of athletic programs, which sounded a lot like athletic directors who opposed NIL 3 years ago. He also made sure to throw in a "Go Gators." I thought we had moved passed that antiquated way of thinking (not the "Go Gators" part). He also talked about the fear of cutting athletic programs and keeping the student-athlete designation (again, the hearing seemed more focused on employment status than NIL rights). Later, Washington State athletic director Pat Chun would argue that labeling college athletes as employees would cause "irreparable damage" because they would be able to be fired for underperformance and there would be negative tax implications.

Representative Cathy McMorris Rodgers agreed that there must be consistent NIL rules, because, without same, you will see some sports eliminated. I never heard any real evidence to support this position, but it seemed to be a running theme throughout the hearing.

Representative Lori Trahan , who was clearly the most educated legislator at the hearing, added that the current patchwork of state NIL laws is difficult for athletes to navigate. Again, it was frustrating to hear this conclusory statement without any evidence to back it up when the committee could have easily invited current athletes to provide firsthand accounts of any such confusion.

Virginia State president Makola M. Abdullah stressed the importance of providing financial literacy and marketing-related education to athletes, which is a big reason why Florida decided to not repeal its NIL law. State laws have the capacity to include educational requirements, but schools shouldn't need any more motivation to voluntarily determine that it is worth their while (and that it is their mission) to empower all students, including athletes.

My friend Lawrence "Trey" Burton III , who is a loyal reader of this newsletter, provided some great commentary when he said that college athletes should be able to get paid as much as legally possible for their NIL and that the good from NIL heavily outweighs the bad. He expressed his concerns about players giving away their intellectual property rights when they enter into some deals, which appeared to be completely ignored by the committee.

In a hearing where many legislators wanted to bash NIL collectives, FSU softball player Kaley Mudge showed quite a bit of support. She mentioned that her work with a collective in Tallahassee has helped her pay for nursing school.

Where did we finish? With a representative using his extra allotted time to say, "Go Dawgs." No, really.

I remain unconvinced that Congress will get its act together to pass meaningful NIL legislation nor am I convinced that Congress should be wasting its time on this subject. It should focus on ensuring that foreign athletes have NIL rights and move on to more important domestic and international issues, leaving the NCAA to figure out if/how to enforce its draconian rules.

I did find it funny when Representative Diana Harshbargar said she was upset because she wanted to hear correct facts and not hearsay given she and her colleagues failed to invite any agents, lawyers, current athletes, or NIL collective representatives who are on the ground and could have provided firsthand accounts of what is actually occurring on a day-to-day basis.

Here's NCAA president Charlie Baker's statement following the hearing:

U.S. Gambling Industry Seeks To Ban Sportsbooks From Doing NIL Deals.

A new responsible marketing code will restrict sportsbooks from partnering with colleges to promote sports wagering as well as to bar payments to college athletes for using their NIL.

Drew Timme Is A Great Display Of NIL's Potential.

NIL was a big cause for him sticking around in school, which I would think is universally seen as a positive.

"NIL is a game-changer," Drew Timme's father, Matt Timme, told Gonzaga Nation. "If Drew would have been in this situation five or six years ago, he probably would have been gone by now. And it's not like we need Drew to go out and make money for his family. Fortunately for us, he's in a situation where what he's doing, he's doing it for himself."

"Back when Drew was assessing his options, I told him, you enjoy being where you're at, take advantage of it and finish your degree so you don't have to worry about going back to school," Matt Timme said.?"The NBA and being a professional athlete will always be there. Your college time and your experience during your time in college will not, so I'm glad he's taken advantage of it to the fullest."

Future Projected 1st Round NBA Pick Talks NIL.

Mackenzie Mgbako, a Duke commit who already has deals with Levi's, PSD, Ksubi, Stone Island, and others, says he chooses his relationships based on his personality and what he sees himself actually consuming on a day-to-day basis.

Smart.

NC State NIL Collective Chats With On3.

Here's the final comment from the piece: "In accordance with my interpretation of the NCAA guidelines, and at the request of NC State athletics, we do not communicate with student-athletes until they are officially enrolled at NC State University."

Texas A&M-Corpus Christi Has NIL Collective.

They are sprouting up everywhere. This one is called Shakas Up Sports and has already raised roughly $30,000.

Collective Formed To Support SIU.

Called FloorburnU, it will raise funds with the help of FirstTeam Sports Consulting. 90% of contributions will be paid out to athletes.

Bold NIL Collective Headline.

The San Diego Union-Tribune asks, "Is San Diego State’s approach sustainable when other schools’ NIL collectives are buying teams?"

Final Thoughts.

That is it for Vol. 21 of Newsletter, Image, Likeness. Thanks to the more than 5,835 people who 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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