Newsletter, Image, Likeness Vol. 41: Georgia Could Change The HS NIL Landscape

Newsletter, Image, Likeness Vol. 41: Georgia Could Change The HS NIL Landscape

The Weekly Longer NIL Thought.

It appears that Georgia high school athletes will soon be able to enter into NIL deals.

Robin Hines, executive director of the Georgia High School Association, said that he will have a proposal ready for the Association's Executive Committee meeting this Fall. The expectation is that the Executive Committee will approve the proposal if one reads through the lines on Hines' overall commentary.

The reaction to a tweet that I pushed out about this subject was met with a variety of reactions ranging from it being an awful idea to it serving as great news. But the most relevant replies were those that acknowledged it will be a common practice soon and that Georgia will likely have a major domino effect on other big-time HS football states to allow high schoolers to take advantage of NIL (that one was from my friend Drew Butler ).

Putting aside the normative reasons why, in my estimation, high school athletes should not be denied the right to exploit their names, images, and likenesses (for the same reasons that I argued college athletes should not be denied such rights), it makes perfect sense that Georgia, from a competitive standpoint, should want to take action now before it is too late.

Julian "JuJu" Lewis is a perfect example. As Pete Thamel highlighted for ESPN in a February 17, 2023 article titled, "The prep QB phenom and a million-dollar NIL question," Lewis, a 15-year-old at the time the article was written, is already being compared to Trevor Lawrence and Justin Fields. You would think that Lewis can start cashing in on his fame right now, but Georgia's high school athletic association doesn't allow for it . . . yet.

"While more than half of the states in the country have legalized name, image and likeness (NIL) deals in some form for high school athletes, the state of Georgia sits at a compelling crossroads. It is home to one of the richest recruiting bases in the country, the back-to-back national champions of college football and a generational prospect in Lewis, who could command well over a million dollars on the open market over the next three seasons," wrote Thamel.

Lewis has stated that he is unlikely to leave Georgia, but that doesn't mean others similarly situated will follow his path of staying put. And that is true for top-tier athletes in Florida, Alabama, and other states that currently restrict high school athletes from engaging in NIL activities. No one benefits from a star athlete leaving to play in another state except perhaps the school that inherits the athlete (minus the player at his position who ends up getting replaced).

As of now, a total of 31 states (as well as Washington D.C.) already allow or are soon to allow high school athletes to enter into NIL deals. Not on that list are states like the aforementioned Georgia, Florida, and Alabama, as well as Texas, South Carolina, Ohio, North Carolina, and Mississippi, which tend to produce a lot of talent for the next level. One would think that these states are closely monitoring what happens in Georgia and if as expected the state does decide to start allowing for NIL transactions to take place, they will likely follow suit.

I last spoke with the FHSAA (Florida's high school athletic association) on this specific subject in May of this year and was advised that they are closely monitoring the situation and my takeaway was that the group is getting closer to allowing high school athletes to earn compensation off of their fame. But there do remain individuals who are very afraid of change and push back whenever it appears that progress is being made. Again, I have to believe those people will start to become quieter if/when Georgia makes its move.

Info From A Joint Survey By Sportico And The Harris Poll..

Makes it seem like America at large is warming up to college athletes being compensated and perhaps to a greater degree. From the article:

  • 67% of U.S. adults believe college athletes should be able to receive direct compensation from their schools.
  • 64% support athletes' rights to obtain employee status.
  • 59% believe athletes should be able to collectively bargain as a labor union.
  • More Americans today (74%) support athletes' right of publicity than they did in November 2020 (62%).

The Collective Association Grows To 17 Strong.

The trade association that advocates for athletes, shares best practices, and acts as a unified voice to shape the development of the NIL market has added 10 collectives to the fold.

As a reminder, the initial 7 founding members are:

  • Classic City Collective (University of Georgia)
  • Spyre Sports Group (University of Tennessee)
  • The Grove Collective (University of Mississippi)
  • The Battle’s End (Florida State University)
  • House of Victory (University of Southern California)
  • Champions Circle (University of Michigan)
  • Happy Valley United (Penn State University)

The 10 new collectives are:

  • Wildcat NIL (Kansas State University)
  • Garnet Trust (University of South Carolina)
  • Mass St. Collec)ve (University of Kansas)
  • The 1870 Society (Ohio State University)
  • The 5430 Foundation (University of Colorado)
  • Desert Takeover Collective (University of Arizona)
  • Every True Tiger (University of Missouri)
  • The Royal Blue (BYU)
  • Sun Angel Collective (Arizona State University)
  • 502Circle (University of Louisville)

BYU Basketball Coach Admits He Needs To Do A Better Job With NIL.

Mark Pope says Ques Glover transferring out of BYU "was all NIL."

"My job, what the rules allow, is to fundraise on behalf of an NIL entity," said Pope. "The rules allow me to connect current student-athletes with NIL entities. They actually allow me to provide space for them to meet. I can’t do any of that with prospective student-athletes. But I can do it with current student-athletes. And I’ve got to do a better job right now.”

He says he spends roughly 35-40% of his day trying to convince people to help with the school's NIL collective.

Lawsuit Alleges LifeWallet Is "Effectively A Ponzi Scheme."

Cano Health has filed a lawsuit that alleges such and claims that LifeWallet owes the company roughly $67 million. It calls out LifeWallet for being a "sham company" and argues that the entity made "misrepresentations" when negotiating contracts. Cano Health has been countersued by LifeWallet and seeks for the dispute to be adjudicated in arbitration, where it would be confidential.

Livvy Dunne Signs Exclusive Deal With Leaf Trading Cards.

A series of limited-edition cards will be designed by Leaf.

"We are thrilled to welcome Olivia Dunne to the Leaf Trading Cards family," said Leaf CEO?Brian Gray. “Olivia’s incredible athleticism and unwavering commitment perfectly align with our values, making her the ideal partner for this endeavor. Together, we aim to create a collection of trading cards that not only celebrate her achievements but also offer fans and collectors a tangible piece of her extraordinary journey.”

Cameron Brink Becomes The 1st Female Basketball Player To Sign With New Balance.

The Stanford senior will appear in New Balance's advertising campaigns and help the footwear and apparel design teams with influencing future products.

Clemson QB Cade Klubnik Enters Multi-Year Contract With Rhoback.

The apparel brand, which I love to wear myself (this is not an advertisement), has signed Klubnik to join an NIL roster that also includes Alabama QB Jalen Milroe. Rhoback has also previously associated with Will Anderson, Bijan Robinson, JT Daniels, and Kyle Hamilton.

Rhoback Also Signs Deal With Reigning Big Ten Freshman Of The Year, Nick Singleton.

THE Ohio State Commit Lincoln Kienholz Signs With Tommy John.

Both Tommy John's co-founder, Tom Patterson, and Kienholz are from South Dakota. The partnership is set to launch in August and Kienholz is pegged to be a "prominent brand ambassador."

Bose Hooks Up The Penn State Offensive Line As Part Of Deal With Drew Allar.

Athlete Marketplace MOGL Adds A New Feature.

It's called NILFANS and here's what it does:

No alt text provided for this image

It seems to be similar to Cameo with the addition of appearances and autographs.

Just Win Management Group Signs FSU WR Keon Coleman To Handle Marketing Exclusively.

No alt text provided for this image

The company also represents FSU QB Jordan Travis and RB Trey Benson.

USC Volleyball Twins Sign With The Network Advisory.

Audrey and Nicole Nourse will be represented by Lowell Taub 's Stoked Management as well as Justin J. Giangrande 's The Network Advisory. They were previously represented by WME Sports.

Jim Cavale Steps Away From Running The Show At INFLCR.

Looking forward to him announcing what's next.

Final Thoughts.

That is it for Vol. 41 of Newsletter, Image, Likeness. Thanks to the more than 6,970 people who have subscribed to this newsletter thus far, and please feel free to share this free resource with others on LinkedIn or elsewhere.

Outside of LinkedIn, you can follow me on?Twitter?and?Instagram. And if you ever require legal assistance, check out?Heitner Legal.

Sohel Momin

Intellectual Property & Legal Tech Innovation with Blockchain

1 年

Intriguing insights, Darren! ?? Exploring the impact of HS athlete compensation and the evolving landscape of NIL.

CHESTER SWANSON SR.

Realtor Associate @ Next Trend Realty LLC | HAR REALTOR, IRS Tax Preparer

1 年

Thanks for Sharing.

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