What Are NIL Collectives and Are They Too Good To Be True?
Simply put, NIL Collectives have the potential to change the NCAA forever. These Collectives are donor-led pools of money from an institution’s alumni and other influential supporters, all for the purpose of making NIL opportunities for Student-Athletes. Collectives pool money from boosters and businesses who are partial to an institution, all while being fully independent of that very institution. Recently, these collectives have risen from a niche, unique perk to attending an institution to a major factor in some Student Athlete’s college decision, and are likely to come to an institution near you soon. If not already there.
NIL Collective 101
These collectives work within their state’s law which generally entitles supporters of institutions to pool money together, for the expressed purpose of funding NIL opportunities for Student-Athletes who opt into the collective’s services. These collectives come in varying shapes and sizes, with some offering memorabilia and “exclusive investor coins” in exchange for subscriptions, while others opt for donations and other sponsorship opportunities to generate money.
In response to these budding collectives, the NCAA’s Division I Board of Directors drafted the aptly named “NIL Collective Guidance.” The Guidance alleges that the expressed effort of some of these NIL collectives is to promote and support “a specific NCAA member institution by making available NIL opportunities to [recruits] and [currently enrolled college athletes] of a particular institution.“ In light of this, the Guidance asserts that these NIL Collectives “trigger” their definition of “booster”, and should be similarly limited in their abilities to interact with Student-Athletes.
What this Means For Recruits
Should the Guidance stand, recruits, their families, or anyone affiliated with the recruit cannot have any recruiting conversations between individual boosters or NIL collectives that have that triggered booster status. Moreover, recruits and these triggered NIL collectives cannot have an agreement where continuing enrollment at a specific institution is a part of the agreement. Coaches or staff of an institution may not also set up a meeting between a recruit and a triggered NIL collective. These same coaches and staff may not talk to a recruit on a triggered NIL collective’s behalf. The point is to ensure that NIL deals are signed due to the value that the Student-Athlete has in an NIL capacity alone, not an incentive for enrollment, athletic performance or achievement, and team membership.
What this Means For Current NCAA Athletes
Similarly, current Student-Athletes cannot sign an NIL deal with a triggered NIL collective where enrollment at a specific institution is a contingent clause to the contract. These deals must also be created based on the Student-Athlete’s perceived NIL value. Moreover, the NCAA is angling to apply these rules retroactively, meaning that it will be looking into deals already made prior to this guidance and may hand down sanctions and citations accordingly.
So, what now?
Right now, it’s unclear whether the NCAA will actually enforce this guidance, or whether it even can with each state’s ability to regulate their own NIL laws. The NCAA is actively lobbying Congress in hopes to make a new federal NIL law that each state must adhere to, simplifying the policing obligation of the NCAA and leveling the playing field by unifying the rules that all schools must adhere to. Until then, more and more of these NIL collectives will pop up with new, unique ways of pooling money for Student-Athletes. Certain athletes who are allowed to opt-in will likely receive hundreds of thousands of dollars in NIL deals, if not more, all while potentially being at risk of being audited and found in violation. Whether it be through the current Guidance, or retroactively after Congress finally formulates a nationwide law. Big pools of NIL-intended money for athletes is alluring, but Student-Athletes should engage with these groups carefully. A Student Athlete’s eligibility may be at risk as the NCAA is retroactively enforcing the NIL Guidelines, and it is unclear just how aggressive they will be in taming this new NIL phenomenon. These NIL collectives might just be too good to be true.
For athletes looking to monetize on their NIL in a way that does not put their eligibility at risk, Couro is the platform built for you. With Couro, you can share your experiences and training, and give personalized feedback to fans and amateur athletes. All in exchange for subscriptions to you. No need to go to a specific school, play a specific amount, or win a specific medal. Just be you.
By Cam Van
