Newsletter, Image, Likeness Vol. 52: Schools Got Super Cozy With NIL Collectives In 2023.

The Weekly Longer NIL Thought.

Next week, this newsletter will make it to its 1st anniversary.

In honor of the achievement, I figured I would go back into the archives to Vol. 1, titled, "Schools Get Cozy With NIL Collectives."

A lot has happened in the span of 1 year, and going back to that 1st volume speaks . . . volumes.

Back then, the NCAA Division I Board of Directors had just clarified its interim NIL policy with some guidance which, for the first time, indicated that it is OK for an athletic department staff member to assist an NIL entity (i.e. an NIL collective) in raising money and that institutions are permitted to request that donors provide funds to an NIL entity as long as the funds aren't earmarked for a specific sport or athlete.

As I wrote at the time, "It is now fair game for all athletic directors, coaches, and others in athletic directors across the country to become much more active in pushing boosters to benefit NIL collectives and, in turn, more money should flow to college athletes."

This past year, we have seen practically every athletic director and head coach vocalize support for NIL collectives. And not only any NIL collectives. Schools have very much gotten into bed with specific collectives, naming them the "official" collective of [insert school name here].

At first, administrators and coaches were reluctant to share their support for NIL collectives and to raise money from donors for NIL activities. Now, you'd be hard-pressed to find a coach and athletic program not actively pimping out NIL collectives because they know their jobs rely on it.

A year ago, I said that it was "hard to believe that this type of message is not being delivered from every college campus across the country." Today, I find it hard to believe just how active schools have been in pushing donors to fund specific NIL initiatives and, perhaps to a somewhat lesser degree, direct where the funds are going (no matter what Congress may be told).

New NIL-Related Lawsuit Filed Against NCAA.

This week, Matthew Bewley and Ryan Bewley initiated a lawsuit against the NCAA in the U.S. District Court for the Northern District of Illinois.

The 19-year-old twin brothers from Fort Lauderdale (my hometown) joined the Overtime Elite Academy (OTE) and, because of such involvement, were denied eligibility to participate in intercollegiate athletics as a part of Chicago State University.

The filed Complaint says that the NCAA denied the Bewleys eligibility largely based on the compensation they received in exchange for the use of their NIL, which would be in conflict with the NCAA's interim NIL policy and in conflict with Illinois' NIL law, which states, in part, "Compensation from the use of a student-athlete’s name, image, likeness, or voice may not affect the student-athlete’s scholarship eligibility, grant-in-aid, or other financial aid, awards or benefits, or the student-athlete’s intercollegiate athletic eligibility . . ."

The NCAA's justifications for rendering the Bewleys ineligible were that the OTE compensation exceeded actual and necessary expenses, the players competed for a team that considered itself professional, and they competed with and against professionals.

Interestingly, the Complaint notes that the NCAA permitted Rob Dillingham, a fellow graduate of OTE, to participate in competition for the University of Kentucky basketball program "despite the fact that he played for and received monetary compensation from OTE prior to enrolling at the University of Kentucky."

The Bewleys are seeking an injunction and monetary damages as well as other forms of relief.

"Coalition For The Future Of College Athletics" Pushes Congress For NIL Action.

28 Division I conferences have teamed up to create this "coalition" to push for a federal NIL law that includes affirmatively establishing that college athletes are not employees of their universities.

The website that was created by this "coalition" makes it very simple for visitors to send a note to their representatives, petitioning them to take action on this subject.

Seems like wasted time and money, but what do I know?

Sports Industry Veteran Debbie Spander Says Congress Should Stay Out Of NIL.

She said as much in a guest column on Sportico. I agree, although I do believe Congress should clear a path for athletes on F-1 visas to be able to participate in NIL activities.

I thought the following portion of the guest column was particularly notable: "The use of uniform NIL contracts is not only a terrible idea, but also not feasible," said Spander. "As a lawyer and an agent, I have negotiated thousands of agreements. Sponsorship, social media marketing, appearance and media deals all require different forms. The same applies to NIL deals: There are sponsorship, marketing, appearances, car leases and agreements with collectives ranging from $500 to $500,000. One form will never cover these and will, in fact, lead to more confusion in the NIL marketplace. And the contents of these agreements are confidential information."

Truth.

Insight On Why A Brand Is Investing In NIL.

On3's Pete Nakos spoke with Marquel Carter , Director of Influencer Marketing at Nutrabolt , which oversees the brand C4 Energy, on the perceived return on investment for the brand by associating with college athletes through NIL deals.

“Our plan, our strategy, is really to be ever present in this space,” Carter said. “Because we are ever present in this space, you’ll definitely see more from us. We have a partnership that allows us to work with 100 student-athletes a month, in various sports and across the nation. That’s what I’m excited about is us being able to really activate with talent across the whole nation.”

That partnership is with 98Strong , a HEITNER LEGAL client.

“When it first opened up, it was kind of a scary space, right?” Carter also said. “No one really had too much information on how well it would do. I think we’ve spent enough time now to see that there is a return on investment there. It’s starting to level out with just the understanding of where those marketing dollars or budgets for talent lie. I definitely think this space is growing every single day.”

17 State High School Athletic Associations Still Don't Allow NIL.

Jeremy Crabtree of On3 provides a good breakdown of the basis for those lingering prohibitions on a state-by-state basis.

Nebraska Volleyball Player Becomes 1st Panini Female Athlete.

Lexi Rodriguez 's 1st trading card is already available.

Villanova Announces Friends Of Nova As Official NIL Collective.

From the release: "Led by former Villanova Men's Basketball All-American, 2006 graduate and first-round NBA draft pick Randy Foye, Friends of Nova's philosophy is rooted in helping student-athletes build their brand, give back to their community, and earn compensation.

Yet Another NIL Collective Beer Partnership..

This time it's the University of Northern Iowa's Panther Collective partnering with Single Speed Brewing . A portion of all retail sales from this project will support NIL efforts for college athletes at the University of Northern Iowa.

Pickle Brand Signs Maason Smith And Cutter Boley.

SuckerPunch, the maker of pickle-based products, is extending its brand to launch SuckerPunch Hydration and will promote it with a couple of NIL deals. It has signed Maason Smith (LSU) and Cutter Boley (a HS senior-year QB at Lexington Christian Academy in Kentucky).

"As SuckerPunch enters the hydration space with our electrolyte-enhanced pickle juice, we have begun working with young athletes who embody our values," said Brian Schmucker, Co-Owner, SuckerPunch. "Maason Smith and Cutter Boley are ideal SuckerPunch athletes. Maason demonstrated loyalty to his home state when he committed to LSU as a top recruit out of high school, and he showed an admirable fighting spirit following his knee injury in 2022. Cutter's leadership abilities, academic accomplishments, and work ethic are impressive, but his commitment to philanthropy has truly set him apart. We look forward to supporting and partnering these young men as they continue to live our shared values on and off the field."

Currex Insoles Signs NIL Deal With Nyck Harbor.

It's a year-long partnership between the South Carolina freshman and Currex Insoles. Park Ave Sports facilitated the deal.

Final Thoughts.

That is it for Vol. 52 of Newsletter, Image, Likeness. Thanks to the more than 7,625 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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