3 Important but Under-the-Radar NIL Developments
Read about the NCAA’s new rule about “presuming” an NIL violation, NBC Sports Athlete Direct’s innovative approach to NIL marketplaces, and the not-so “everything is bigger in Texas” High School NIL Bill.
presumed nil violations
The list of mostly DI football coaches publicly decrying NIL infractions - and asking the whereabouts of NCAA enforcement - is too long to list here. I’ll just skip past the irony and get to the point: effective January 1, 2023, the NCAA’s Division I Board finalized a new NIL enforcement rule. The development was covered by On3’s Jeremy Crabtree and SI’s Ross Dellenger, but didn’t receive the widespread coverage you’d expect.
The gist of the new rule is: “In cases involving name, image and likeness … the infractions process shall presume a violation occurred if circumstantial information suggests that one or more parties engaged in impermissible conduct.”
And so what are the majority of these NIL infractions likely to involve? Contact and offers - or in NCAA terms, impermissible contact and impermissible offers.
An impermissible contact is defined as coach or other staff member directly or indirectly (through a Collective) contacting a prospect who is not in the Transfer Portal. What makes this an NIL infraction, versus another kind of infraction, is that the nature of the contact is to discuss an NIL opportunity.
An impermissible offer is defined as a verbal or written NIL proposal made to a prospect prior to the prospect’s enrollment. Of course, it’s an infraction if made by a coach or staff, but also if made by a booster or Collective.
To prove that the presumption of an NIL infraction is unwarranted, schools must show that they adhered to the NCAA’s NIL interim policy.
nbc sports athlete direct’s unique approach
Since its official launch in the Fall of 2022, NBC Sports Athlete Direct has taken a measured and methodical approach to developing their NIL marketplace. Led by SVP of Strategic Initiatives and Head of Diversity & Inclusion Damon Phillips, NBC Sports Athlete Direct has been focused on building a sustainable business - largely refraining from the PR and marketing some of his competitors seem focused on.
Like other NIL marketplaces, NBC Sports Athlete Direct helps student-athletes monetize their name, image and likeness. Six months ago, I would have said that their most unique feature was their ability to access local and national brands (aka their existing advertisers.)
But in announcing their first NIL “club” - with the formation Loyola Chicago men’s basketball team - we are beginning to see their additional competitive advantages. The club will operate like other NIL clubs, with student-athletes providing virtual access to fans in exchange for membership fees, but the assets that NBC Sports is deploying make this NIL club unlike any other.
Loyola Chicago games are broadcast on USA Network - owned by NBC - and during those broadcasts, the Loyola Chicago NIL club will be promoted
And in addition to that visibility, NBC Sports is the TV and digital rights-holder for some A-10 men’s basketball games
And lastly, NBC owns the regional sports network NBC Sports Chicago, which can use to promote the club
To execute the club at Loyola Chicago and other initiatives, NBC Sports teamed up with MOGL to power their technological endeavors (i.e. connect to opportunities, disclose activities, and receive payment all on the MOGL platform.)
Given NBC Sports’ infrastructure, there might not be another NIL marketplace that can promote NIL clubs or products at this scale, should they choose to operationalize it.
a not-so “everything is bigger in texas” nil bill
High School students’ use of their NIL to earn income is permitted in about half of U.S. states. One of the states where high school NIL is prohibited is Texas. That’s significant because Texas has the most high school athletes.
Given that it’s Texas state law - and not the decision of the state’s high school athletic association (the University Interscholastic League), I wouldn’t bet on anything changing anytime soon. However, last week State Representative Giovanni Capriglione filed H.B. 1802, “relating to the compensation and professional representation of certain students participating in University Interscholastic League activities or in intercollegiate athletic programs at certain institutions of higher education.”
I currently work for six (6) state high school associations (not Texas.) What caught my eye as highly unusual was the phrase, “certain students participating.” Unlike other states, this Bill would permit NIL activities for students 18 years or older, but not all Texas high school athletes.
So remember when I said that Texas has the most high school athletes? If Texas were to pass a high school NIL law like other states, it would presumably then have the most high school athletes in the country participating in NIL. But the result of Bill 1802 (prohibiting NIL for about 75% of the state’s high school athletes) would mean that Texas would likely rank around the middle of NIL participation compared to other states. Whether the Bill becomes law is difficult to judge. There are multiple steps before it even reaches the state’s House and Senate.
Bill Carter is an NIL Consultant, Educator, Speaker, and Columnist for Sports Business Journal. He also teaches NIL in College Sports at the University of Vermont’s Grossman School of Business. Bill’s a SportsBusiness Journal Forty Under 40 Award winner and former co-founder of the athlete & event marketing agency Fuse, which he operated for 20+ years before selling in 2019.