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Post Happy NIL Day

Thursday July 1, 2021

Like it or not, the landscape of college athletics changed overnight. Laws in several states went into effect protecting the right of college athletes to earn money from their name, image, or likeness. The NCAA, pushed to the limit, adopted their own interim policy which will serve as a stopgap until legislation catches up. That day may never come – Congress is finding it difficult to find consensus, and we might just be left with a patchwork of state laws.

NIL is perhaps the cleanest solution the schools could hope for: NIL money isn’t paid by the schools, there aren’t employment issues, and there should be fewer Title IX issues. Athletes are now allowed to get what they can get from their personal brands just like any other person. Direct payments from the schools would have been much messier, brought along all sorts of regulatory questions, and cut out a large share of the NCAA membership who are barely solvent. The “Olympic model,” which is basically NIL, has been circulated for well over a decade. Schools and the NCAA could have been out ahead of this issue, but instead we have a last-minute acquiescence to look the other way while an inconsistent framework of state laws kicks in.

Georgia fans have been especially tuned into the NIL issue since the suspensions of A.J. Green and Todd Gurley. The draconian NCAA regulations and Georgia’s passive willingness to accept them had many of us beating the drum for NIL reform years ago. This new era won’t remove the bad taste left by those episodes; all we can do is say that it’s about time.

It will be fascinating to see what comes of this change. There will be an early rush as the market shakes out and determines value. Some will do well; others won’t. Some will build successful brands and set themselves up for a secure future, and others will squander the opportunity. Some will build brands that only tangentially have to do with their sport, and now they can monetize that following. Will there be locker room dynamics? Maybe – who knows? There will be some hilariously bad and cringe-y endorsements and branding. We’re here for all of it. That’s the way markets work, and none of it is reason enough to delay these rights to student-athletes.

Since there’s money involved, there’s also bound to be plenty of fraud and shady characters ready to prey on under-informed players and their families. Schools might not be facilitating the deals, but it’s in their interests to have a supporting role. Resources should be available to student-athletes to help them identify legitimate endorsement deals and stay within legal and regulatory guardrails. Many schools, including Georgia, have introduced such partnerships and programs, and hopefully more will follow. Businessman and NFL veteran Marshall Newhouse tweeted some good advice: get help to understand the state laws and school/NCAA rules that apply, thoroughly vet anyone who approaches you with a deal, and don’t lose focus. “The opportunities will come the more you shine.”

I’m particularly interested to see if and how recruiting changes. Do prospects have more incentive to remain closer to home where name recognition and brand value might be higher? Will prospects play fan bases off of each other to determine the most enthusiasm for their personal brand? Will we eventually see a decision based on what amounts to a legal bidding war? Fans are admonished to avoid communicating with or interacting with prospects on social media, but would it be a different story if they knew that buying that 5* prospect’s merchandise might tilt the scales? None of these prospects are beholden to a specific school’s compliance department yet – will this market be even more unregulated?

There are a million angles to NIL because it really is a fundamental change to the model of college athletics. Schools and the NCAA will still make a ton of money – these deals aren’t coming out of their vaults. Now, finally, the people who generate much of that revenue will get a taste of it and begin to realize the value that’s been there all along.



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