California Sports Lawyer® Founder and Managing Attorney Jeremy M. Evans column about the need for change in NIL rules and engagement to sustain success in NCAA sports.
You can read the full column below. (Past columns can be found, here).
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For name, image, and likeness (NIL) to have long term success, the rules regarding NIL must be solidified. There is an argument to be made that NIL has not be successful to date unless a wild west system of laws and regulations or lack thereof is considered success. Men’s college football and basketball has long sought to clean up the business of doing business. If NIL did anything, it took what was likely occurring in the gray and black markets and placed it into the open market for all to see. The following are some ideas to modernize the NIL space for good.
First, NCAA institutions competing in the top division must follow all the same rules and be subject to limitations on funding either through a salary cap or pay per player, pay per sports team, etc. There should also be a minimum salary for all college athletes if money is going to be paid and to co-exist with Title IX compliance. The aforementioned changes will create more jobs for front office and analytics executives and personnel as well to manage payroll and a team of talent.
Second, collectives, alumni donations, and the like must all be regulated and if an institution receives money from the aforementioned, point one above would still apply. There cannot be separate funds for certain universities based on endowments unless those monies are going to academic or facility improvements.
Third, the players must sign commitment contracts. If they are getting paid like professionals, players also need to take the responsibility of committing to a team for a payment or pay some fine for leaving the team early, which could be paid by the school the player is transferring to, or if the student-athlete enters the draft, by the professional team. On the other hand, the player and university athletic departments could also stay with one-year contracts. However, as a business model, there is not much to sustained success where your best players are transferring or leaving every year. One year contracts are a strategy though and could be successful if yearly recruitment is successful.
Fourth, private NIL deals should be unregulated and student-athletes should be able to choose from a list of eligible representation (attorneys and agents). A certified representative or certification process will reduce the need for gray and black market deals. It will encourage openness in deals and representation. Private NIL deals will allow the student-athletes to make above and beyond school payments that will not violate Title IX and be based on what the free market is willing to pay (as opposed to placing liability on the school). For Private NIL deals, the underlying deal cannot conflict with the university (think shoe and apparel deals or be a sin industry product), the schools do not take an administrative fee, do not manage these deals, and cannot offer such deals as a way of encouraging student-athletes to sign with or transfer to their institution.
Finally, conference realignment should be locked in for a set period of time (e.g., 10 years) with scheduling and student schedules at the forefront of importance. The business reason is that television and streaming dollars are needed to effectuate point one at the beginning. The personnel reason is that it will place limitations on when schools can adjust scheduling. Consistency is needed in the wild west.
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About Jeremy M. Evans:
Jeremy M. Evans is the Chief Entrepreneur Officer, Founder & Managing Attorney at California Sports Lawyer®, representing entertainment, media, and sports clients in contractual, intellectual property, and dealmaking matters. Evans is an award-winning attorney and industry leader based in Los Angeles and Newport Beach, California. He can be reached at Jeremy@CSLlegal.com. www.CSLlegal.com.
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