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How does NIL really work? Really

4,635 Views | 34 Replies | Last: 3 yr ago by BMX Bandit
Rectitude
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I would like to know how this NIL program really works. I am not looking for 'confidential' strategies on any school including A&M. But I bet parents of a 5* high school player find out pretty early how the game (NIL) is played in actual practice.

We have heard gossip about 'Collectives'. Maybe all top schools have some version of a Collective.
Do recruiting coaches ever coordinate with their Collective?
At what point can a recruit sign his first NIL contract?
Is there actually a collective NIL contract? or must NIL contracts be with individual and separate 'Sponsors'?
So many questions.

Have there been any good articles posted on how this is really working in the field?

Dan D
yell_on_6th st
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What's the first rule about NIL?
WC94
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Rule #2. #1 is already solidified.
dirkjones
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Basically players will sign with marketing agents (new name for sports agents in college sports). These marketing agents are responsible for seeking deals for their clients.
JJxvi
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https://theathletic.com/3273847/2022/04/27/texas-am-aggies-collective-donors-centennial-campaign-fundraising-kyle-field/?source=user_shared_article
BMX Bandit
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Do recruiting coaches ever coordinate with their Collective?

No.

At what point can a recruit sign his first NIL contract?

Depends on the state. in Texas, when enrolled in the school

Is there actually a collective NIL contract?

there can be.

must NIL contracts be with individual and separate 'Sponsors'?

either
Meximan
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NIL is just a very fancy way of saying that student athletes can sign endorsement deals. That's it. In the past, NCAA rules would render them ineligible if they did. Schools cannot get involved in the process in any manner at any time.

What sets A&M apart is student athletes essentially get a mini business course outlining how the process works, how to manage their money, how to go about searching for deals for themselves and managing their own "brand", and how to invest in themselves and their future. Other schools don't do that.
BMX Bandit
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in texas, the school does get involved as it must review the proposed NIL for compliance with the law before student can enter the contract.

all schools in texas (and florida and other states) are required to have a course for "financial literacy and life skills"
_mpaul
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Poorly.
AWP 97
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I've seen some interesting points on here. However, I'm curious how State of Texas law would effect a player like Walter Nolen. He is not officially an Aggie until he enrolls. What law would stop him from making money from signing autographs somewhere? Let's for argument's sake say that he signs autographs at a place not affiliated with any college. For instance, his favorite pizza place has an event and he appears for a fee.
BMX Bandit
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the NCAA could rule him ineligible and not be in violation of Texas law. (they are not going to touch this issue)

rootube
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Here's how it works. Your school is following the rules and doing things "the right way" everyone else is probably cheating.
FriskyGardenGnome
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Meximan said:

NIL is just a very fancy way of saying that student athletes can sign endorsement deals. That's it. In the past, NCAA rules would render them ineligible if they did. Schools cannot get involved in the process in any manner at any time.

What sets A&M apart is student athletes essentially get a mini business course outlining how the process works, how to manage their money, how to go about searching for deals for themselves and managing their own "brand", and how to invest in themselves and their future. Other schools don't do that.
Someone should tell Saban, because Bama does the same thing.









We just do it better.
greg.w.h
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The issue very much is when local merchants whose business is based on the school and possibly also are boosters provide NIL deals.

The description of The Fund also has a collective acting in effect as marketing agents if the story is accurate and potentially are making a profit off the deals. All of this is in the category of unintended consequences of the various changes to state law, but Saban's plan is in effect to extend the cartel that kept student athletes making very little while he and other coaches (and assistants) made millions. The states will undoubtedly adjust laws in time as they direct the NCAA because the NCAA is arguably visibly incapable of the level playing field and its natural instinct is to behave like a government. None of that is durable.
Sponge
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Ya even if the current rules forbid that (not yet enrolled), I bet he could do it anyway. If he gets taken to court he'd win with the exact same argument that allowed nil in the first place.
BMX Bandit
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Sponge said:

Ya even if the current rules forbid that (not yet enrolled), I bet he could do it anyway. If he gets taken to court he'd win with the exact same argument that allowed nil in the first place.


There is no court case that allowed NIL.

BigC
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The old rules not just disallowed marketing deals, but also prevented players from generating any income off of theirs themselves in any connection with their athletic status. This meant that a player could sell T-shirts with their own picture on it. The most insane thing was the NCAA prevented a college kicker from posting Dude Perfect style trick kicks on YouTube. Like the $1 per 5,000 views or whatever is just too much of an affront to "amateurism".
Atreides Ornithopter
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Meximan said:

NIL is just a very fancy way of saying that student athletes can sign endorsement deals. That's it. In the past, NCAA rules would render them ineligible if they did. Schools cannot get involved in the process in any manner at any time.

What sets A&M apart is student athletes essentially get a mini business course outlining how the process works, how to manage their money, how to go about searching for deals for themselves and managing their own "brand", and how to invest in themselves and their future. Other schools don't do that.


So it is a business class for yourself. I hope they get 3 hours of credit per semester
https://i.postimg.cc/rpHKr9JQ/IMG-0770.jpg
TAMUallen
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Arrakis ecologist said:

Meximan said:

NIL is just a very fancy way of saying that student athletes can sign endorsement deals. That's it. In the past, NCAA rules would render them ineligible if they did. Schools cannot get involved in the process in any manner at any time.

What sets A&M apart is student athletes essentially get a mini business course outlining how the process works, how to manage their money, how to go about searching for deals for themselves and managing their own "brand", and how to invest in themselves and their future. Other schools don't do that.


So it is a business class for yourself. I hope they get 3 hours of credit per semester


It's the best business class they can get if they're getting real world experience with real and considerable money at the start. They grow up like 18 year olds nearly a hundred years ago who became an adult and had to make their life.
Rectitude
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Great feedback.
Thanks all
Hungry Ojos
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No one really answered OP's question though.

So does Jimbo go recruit Walter Nolan, for example, and try to sell him on all the great things about A&M, then say something along the lines of "our collective will be contacting you next about potential NIL deals."

Then a rep from the collective calls and says "if you sign with A&M, I can guarantee you NIL deals worth $500k a year." Or something like that?
itsyourboypookie
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I pay hot chicks money on only fans

Same thing
BMX Bandit
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Hungry Ojos said:

No one really answered OP's question though.


I did.

Quote:

So does Jimbo go recruit Walter Nolan, for example, and try to sell him on all the great things about A&M, then say something along the lines of "our collective will be contacting you next about potential NIL deals."


No.

Quote:

Then a rep from the collective calls and says "if you sign with A&M, I can guarantee you NIL deals worth $500k a year." Or something like that?


Nothing like that. No offer of any deal, or even a discussion of a potential deal until enrolled
Aginnebraska
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Meximan said:

NIL is just a very fancy way of saying that student athletes can sign endorsement deals. That's it. In the past, NCAA rules would render them ineligible if they did. Schools cannot get involved in the process in any manner at any time.

What sets A&M apart is student athletes essentially get a mini business course outlining how the process works, how to manage their money, how to go about searching for deals for themselves and managing their own "brand", and how to invest in themselves and their future. Other schools don't do that.
Those mini-courses actually help the school and the athletes by educating them on how to keep their personal business dealings separate from their athletic/college responsibilities. And helps set the expectations on what support the athletes can expect from the University and what the University can expect from them. Sounds like a great idea if its done right.

And the "personal brand" education might just help athletes see the risks to themselves and their marketability if they get caught up in outside scandals.
Frederick Palowaski
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rootube
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BMX Bandit said:

Hungry Ojos said:

No one really answered OP's question though.


I did.

Quote:

So does Jimbo go recruit Walter Nolan, for example, and try to sell him on all the great things about A&M, then say something along the lines of "our collective will be contacting you next about potential NIL deals."


No.

Quote:

Then a rep from the collective calls and says "if you sign with A&M, I can guarantee you NIL deals worth $500k a year." Or something like that?


Nothing like that. No offer of any deal, or even a discussion of a potential deal until enrolled


I'm curious what is your expertise on this subject? My understanding is that at least one of your comments here is incorrect. Of course I'm no expert so could be wrong. My understanding is that the university can share examples of existing deals just not guarantee a specific number. Which makes the whole thing a little vague to me.
Rule#2
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WC94 said:

Rule #2. #1 is already solidified.


Come again?
BMX Bandit
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Quote:

I'm curious what is your expertise on this subject? My understanding is that at least one of your comments here is incorrect. Of course I'm no expert so could be wrong. My understanding is that the university can share examples of existing deals just not guarantee a specific number. Which makes the whole thing a little vague to me.
read the statute, have represented people on both sides of NIL deals, have a friend in compliance at a D1 school. (no one anyone here has likely heard of and not aggies)

the university is permitted to tell a recruit what a current player received. "Joe QB has a deal with Sonic for all the slushees he can drink plus $10k." If I made it seem that was not permitted, my apologies. thats not discussion of a potential deal. that is what is forbidden.

the school never negotiates the deal.
Rectitude
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BMX Bandit said:

Quote:

I'm curious what is your expertise on this subject? My understanding is that at least one of your comments here is incorrect. Of course I'm no expert so could be wrong. My understanding is that the university can share examples of existing deals just not guarantee a specific number. Which makes the whole thing a little vague to me.
read the statute, have represented people on both sides of NIL deals, have a friend in compliance at a D1 school. (no one anyone here has likely heard of and not aggies)

the university is permitted to tell a recruit what a current player received. "Joe QB has a deal with Sonic for all the slushees he can drink plus $10k." If I made it seem that was not permitted, my apologies. thats not discussion of a potential deal. that is what is forbidden.

the school never negotiates the deal.

So BMX, thanks for your reply.

So can you help reconcile Saban's allegation that "A&M paid all their recruits and Alabama paid none of theirs"?
Of course this is not true but what the heck is Saban saying? That is, does he really expect his audience of donors to believe this?
87_Was_Long_Ago
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Another variation or wrinkle is that players, including students still in high school in *some* states, actually sign away their NIL rights for a guaranteed payment amount that could be paid as a lump sum, installments, monthly, or whatever.

The "agency" buys their rights, then negotiates deals to recoup their money or even make a profit if the player turns out to be a star.

This can get pretty complicated quickly, and I think this is one avenue few people thought about as NIL got rolling. Also opens up sketchy complications of wealthy businessmen running "agencies" where they are totally fine writing off the losses on their taxes etc. like a trophy wife running a boutique.

Rectitude
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This article is more helpful than anything else I could find.
However, the NCAA has big challenges coming on settling NIL and Portal.

https://theathletic.com/3301694/2022/05/10/nil-ncaa-definition/
sbag
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No corruption. Nothing to see here. Move along now.
https://www.si.com/college/texas/football/longhorns-nil-quinn-ewers-aston-martin
Milwaukees Best Light
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Since the flood gates have opened, there have been a whole bunch of college athletes sign these deals. Why am I not seeing more ads and such featuring them? Are the ad companies still going through old stock? I am aware that this name image likeness is mostly a sham to get money to kids, but still, if I am cutting a check to a kid from my business, I am gonna need his face on a billboard or commercial or something. So, when, if ever, is this coming?
TAM85
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A&M is required by State law to have the "mini-course".

BMX s correct, the answers are No and No.
BMX Bandit
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Quote:

So can you help reconcile Saban's allegation that "A&M paid all their recruits and Alabama paid none of theirs"?

Of course this is not true but what the heck is Saban saying? That is, does he really expect his audience of donors to believe this?
If you know its not true, what is there to reconcile?

Saban was trying to get his donors to step up and do NIL deals for players.
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