| NEWS NIL starts 7/1: UA releases guidelines to fans/boosters as college sports changes forever. Here's the latest.

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Bama News


The day that will change intercollegiate athletics forever is coming next week, with laws allowing college players to profit from their name, image and likeness – known as NIL – taking effect on July 1.

The immediate problem is this: The general response from the NCAA, right down to the ground level at the institutions, is paralysis. Particularly since a 9-0 drubbing when the ruling on Alston vs. NCAA came down from the Supreme Count, every governing body, every conference, every school, is petrified about what course of action to take. The ruling itself was narrow, and mainly provided that schools must provide certain benefits that most schools are already providing.

But the tenor of the opinion, if it didn’t actively encourage sweeping lawsuits on every possible restriction, certainly did nothing to discourage a plaintiff’s attorney from heading to court on every issue.

The University of Florida released a set of guidelines on how it intends to comply with its state NIL law, which takes effect next week. Alabama is likely to release guidelines soon, although they might be different from Florida’s because the two state laws have different provisions.

Two key provisions in the Florida guidelines do seem to cut directly to the crux of name, image and likeness as a recruiting tool.

“The University of Florida, the athletic department, staff members or boosters may not compensate or arrange compensation to a current or prospective intercollegiate athlete for her or his name, image, likeness.

“Compensation may not be provided in exchange for athletic performance or attendance at the University of Florida.”

The Alabama law appears to be less restrictive of boosters than the Florida law is, and might preclude Alabama or Auburn from adopting an identical policy. Normally, the SEC tries to have its 14 member institutions sing in such strict harmony that the Moonglows would blush.

But now we are talking about a 10-state footprint, with different laws (or no NIL laws at all) and no firm guidance from the NCAA as it girds itself for more litigation. Certainly the league’s coaches and institutions want to see athletes compensated fairly while avoiding a free-market free-for-all. But if the SEC can’t even come to a league-wide policy, how can it find uniformity with other major conferences, call them. If they can’t agree, what’s to stop other leagues or other independent institutions from saying “we don’t read it that way” and letting their boosters off the leash?

ESPN’s Jay Bilas, the most prominent of its analysts on the issue, says there is only one way to avoid more years of legal trouble and uncertainty: toss the rule book into the fire.

At that point, a football coach becomes a general manager with two main responsibilities. First, who are the players who get the 85 scholarship spots, assuming that rule doesn’t go out the window as well? Second, who watches the watchmen? The NCAA can’t do it. Even in the last area where it should have some power thanks to its control over its billion-dollar basketball tournament, the enforcement staff seems to have abdicated any responsibility.

Nick Saban might be one coach with the power to tell a booster who is paying a player $100,000 that the kid isn’t good enough to play, but not every coach is going to have that sort of gravitas. The Florida guidelines say that NIL compensation should be tied to “fair market value,” but what determines that value aside from what an NIL firm or a successful squash farmer is willing to pay?

Perhaps in a couple of weeks, this won’t be a constantly-revisited topic. There will be SEC Media Days and players reporting and all the things that fans want to talk about. But ignore it or not, the New Era is here and Alabama, which has stayed on top through other eras, will have to navigate it.
 

Blake Lawrence


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16m,

I am confident 100% of NCAA student-athletes will receive at least one NIL deal this week.

They all won’t be BIG deals - but the sheer quantity of opportunities this week will be enough to make everyone rethink how big the NIL market is going to be.

🧵
1/ While ANY amount is impactful, someone asked me how many student-athletes could earn four-figures in NIL earnings.

I believe 75% of student-athletes in revenue sports should exceed $2,000/year.

Another 25% of student-athletes in non-revenue sports should exceed $2,000/year.

2/ The discrepancy of NIL earnings between student-athletes in revenue vs non-revenue sports comes from assumption that local sponsors will be large source of NIL deals, and multimedia rights agencies tend to focus their sponsor activations on revenue sports.
3/ Online deals from big brands, offline deals from small businesses, and direct deals from local fans are less biased and more balanced.

Student-athletes who take the NIL compensation process into their own hands can hit that $2,000 threshold quickly.
4/ What does it take to earn $2,000 in NIL compensation?

It can happen faster than you think.

An athlete with 10,000 social media followers can earn $100/promoted post on social media. They’d need to do 20 paid social media posts. 📲
5/ Any athlete could earn $20 for a video shoutout. They’d need 100 fans to request a video. 🤳

Every athlete could host a sports camp in their hometown and earn $100 per camper. They’d need 20 to show up. 🤼
6/ Creative athletes could create their own T-shirts and sell to fans at $20/each. They’d need to sell 100. 🎽

Video-savvy athletes could earn $5 per thousand video views on YouTube. They’d need to generate 400,000 video views. 📹

7/ Highly-recognizable athletes could license their NIL rights to prominent licensees and earn 10% royalties. They’d need to see $20,000 in licensed products purchased. 🃏

In-demand athletes could sign autographs at $10 each. They’d need to sign 200 items. ✍🏻
8/ Well spoken athletes could get paid $500 for a speaking appearance. They’d need to do 4 speeches. 🗣

Outgoing athletes could get $1,000 for a one-hour appearance. They’d need to get 2 opportunities. 🙋🏼‍♀️
9/ Inspirational athletes could get $50 for a 30 minute Zoom session with aspiring athletes. They’d need to host 40 sessions. 👩🏼‍💻

Photo-focused athletes could earn $100/image to license rights for commercial use. They’d need to license 20 pics. 📸
END/ The NIL market will be bigger than you think.

If 75% of student-athletes in revenue sports and 25% of student-athletes in non-revenue sports earn just $2,000/year…

NIL is a $400M/year industry.

If ALL student-athletes earn $2,000/year…

NIL is a $1B/year industry.
 
On a side note we've seen those complain about the seating changes in BDS and a majority of those complaints centered around the notion of the stadium "turning corporate."

And if those corporations are the very ones supporting UA athletes through NIL?
 
On a side note we've seen those complain about the seating changes in BDS and a majority of those complaints centered around the notion of the stadium "turning corporate."

And if those corporations are the very ones supporting UA athletes through NIL?

Buuuuuuuut, wasn't that what the season ticket holders were ultimately doing as well? Donations went to the athletes and paid for their free ride.
 
Buuuuuuuut, wasn't that what the season ticket holders were ultimately doing as well? Donations went to the athletes and paid for their free ride.
Now you're opening the bigger question. Where do season ticket holders money go now? Do they choose to support the players, or spend their money where they are now; the facility improvements we see around campus and the salaries of the coaching staff's.
 
Now you're opening the bigger question. Where do season ticket holders money go now? Do they choose to support the players, or spend their money where they are now; the facility improvements we see around campus and the salaries of the coaching staff's.

I hope it goes towards the facilities and coaches. I'm really impressed with Rhea and Ballou. had zero clue about them before the hire, but everything from the players has been great, so I am impressed with their approach. I hope the money goes to guys like them and their team to continue building our athletes from that side, which undoubtedly makes the players more successful.
 

Alabama athletics released guidelines for its athletes Tuesday ahead of July 1, when UA athletes will be allowed to receive compensation for name, image and likeness.

A few of the notable guidelines for Crimson Tide athletes about NIL and compensation that UA stressed in its release:

  • Restrictions for UA employees: UA employees aren't allowed to compensate or arrange compensation for current or prospective athletes.
  • Can't use NIL compensation in recruiting: Compensation can't be exchanged for someone to attend or compete for Alabama.
  • Several forms allowed: Compensation for NIL can be money, goods or services.
  • Time limit: Contracts are not allowed to go past an athlete's time with the Crimson Tide.
  • Professional representation limited to NIL: Athletes can have professional representation help in arranging opportunities to get compensated for NIL, but those representatives can't be involved in anything past NIL, such as future professional contracts or negotiations.
  • Full disclosure: Athletes have to share agreements with UA.

UA also completed an FAQ section about NIL guidelines.

Some of the important takeaways:

  • Boosters and fans can use an athlete's NIL in exchange for compensation, as long as it doesn't break any restrictions in Alabama law.
  • Boosters, fans and employees can't give any compensation to prospective athletes (recruits).
  • Athletes can't get compensation for how they perform on the field.
  • Athletes can't receive compensation or endorsements from tobacco companies, alcoholic beverage companies, sellers or distributors of controlled substances, adult or entertainment businesses, or any company that promotes gambling such as a casino.
  • UA can stop an athlete from receiving compensation from a company that "in the reasonable and good faith judgment of UA, negatively impacts or reflects adversely on UA."
  • Most of the use of an athlete's NIL won't include anything to do with Alabama athletics. UA registered or licensed marks, logos, verbiage or designs aren't allowed to be used unless UA gives consent.
  • Compensation for athletes has to be within market value.
 
I wonder how much money it will cost the UA to keep pace with NIL (compliance/new associates if needed).

Sure sounds like players could be spending more time trying to make money taking away time for school and preparing for football ( the reason they get a free education).

Jimmy Sexton please pickup on line #1...Jimmy line #1
 
So many ways around a lot of this stuff:

  • Can't use NIL compensation in recruiting: Compensation can't be exchanged for someone to attend or compete for Alabama.
You think recruits are idiots they will know the earnings potential is higher at Bama than other places? Bama already markets come here for a future path to the NFL (future earnings). Can Bama market how much NIL $$ are earned by attending Bama similar to what they do with NFL signing earnings? I assume not but!!!

  • Professional representation limited to NIL: Athletes can have professional representation help in arranging opportunities to get compensated for NIL, but those representatives can't be involved in anything past NIL, such as future professional contracts or negotiations.
Maybe not officially but you know there will be some conversations that will be off the record.
 
So many ways around a lot of this stuff:

  • Can't use NIL compensation in recruiting: Compensation can't be exchanged for someone to attend or compete for Alabama.
You think recruits are idiots they will know the earnings potential is higher at Bama than other places? Bama already markets come here for a future path to the NFL (future earnings). Can Bama market how much NIL $$ are earned by attending Bama similar to what they do with NFL signing earnings? I assume not but!!!
While Alabama is a national name for football, the primary market they have exposure for is relatively small (the state of Alabama and the southeast). An Alabama player's influence in Atlanta or Florida is limited. Meanwhile, USCw has a much larger market (Los Angeles and southern California) for its immediate impact. Marketers want bang for the buck so the earning potential may not be as big as somebody at USCw.

Of course, nobody knows how this will pan out, but athletes who think they will be compensated like an NFL player will be getting a rude awakening.
 
While Alabama is a national name for football, the primary market they have exposure for is relatively small (the state of Alabama and the southeast). An Alabama player's influence in Atlanta or Florida is limited. Meanwhile, USCw has a much larger market (Los Angeles and southern California) for its immediate impact. Marketers want bang for the buck so the earning potential may not be as big as somebody at USCw.

Of course, nobody knows how this will pan out, but athletes who think they will be compensated like an NFL player will be getting a rude awakening.

What's to keep a company from LA not going after a Bryce Young or DJ at Clemson being prep heros in the area, or a San Francisco company coming after Najee (if he were still with us)? I think this will be nationwide, not just region specific. Especially once businesses start catching on.
 
Meanwhile, USCw has a much larger market (Los Angeles and southern California) for its immediate impact.
While true the market is bigger, the market is also saturated. When fans of SC brag about "more things to do on the weekends than watch football" it goes to show there's an apathy in their fandom.
 
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