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Question regarding the function of NIL
Posted on 1/17/24 at 8:50 am
Posted on 1/17/24 at 8:50 am
This question doesn’t relate to any specific player, team or even sport. Just a general question.
My understanding of NIL was that it was supposed to allow players to essentially use their name, image and likeness to gain endorsements with companies, restaurants, stores, etc. The schools themselves would not be involved in paying the players. The players would be paid by whoever they have an endorsement agreement with. However, it seems like we hear about players making X amount of money through an NIL deal, but then we often don’t see that player endorsing or advertising anything. So for many of these players, are they essentially signing an “NIL deal” with a booster who then pays them money for nothing other than playing the sport for that booster’s team? Are these collectives just handing money out of a big pot? I’m just curious as to how that works because it seems like only a small portion of players are actually advertising or endorsing products/companies.
My understanding of NIL was that it was supposed to allow players to essentially use their name, image and likeness to gain endorsements with companies, restaurants, stores, etc. The schools themselves would not be involved in paying the players. The players would be paid by whoever they have an endorsement agreement with. However, it seems like we hear about players making X amount of money through an NIL deal, but then we often don’t see that player endorsing or advertising anything. So for many of these players, are they essentially signing an “NIL deal” with a booster who then pays them money for nothing other than playing the sport for that booster’s team? Are these collectives just handing money out of a big pot? I’m just curious as to how that works because it seems like only a small portion of players are actually advertising or endorsing products/companies.
12
Posted on 1/17/24 at 8:54 am to Roll Tide Ravens
There are plenty that do advertisements for big and small companies. But for the most part its pay for play with the illusion that they are using their likeness to endorse a business.
Posted on 1/17/24 at 8:55 am to lsubatman1
quote:
But for the most part its pay for play with the illusion that they are using their likeness to endorse a business.
That’s sort of my impression, as well.
Posted on 1/17/24 at 8:56 am to Roll Tide Ravens
Are bama fans just now starting to find out about NIL or something? This has been going on for 3 years now.
But I get it, Saban was the ultimate NIL antidote so you really didn't have to fight against it until now.
But I get it, Saban was the ultimate NIL antidote so you really didn't have to fight against it until now.
Posted on 1/17/24 at 8:56 am to Roll Tide Ravens
Idk but I’m going to be so sad if Alabama gets absolutely wrecked with Lambos and shite and then the rules change in the coming years to keep teams from being totally gutted through payments and gifts.
Posted on 1/17/24 at 8:57 am to The Egg
quote:
Are bama fans just now starting to find out about NIL or something? This has been going on for 3 years now.
No, I’m just asking a question about it. I know how it is supposed to work in theory, but it doesn’t exactly seem to operate that way, so I felt like asking a question about it.
No need to be an arse over someone asking a question.
This post was edited on 1/17/24 at 8:58 am
Posted on 1/17/24 at 8:58 am to Roll Tide Ravens
the sport fricked itself. they should have just proposed paying a salary.
Posted on 1/17/24 at 8:59 am to The Egg
quote:1. This is a unique situation given how legendary Saban is and the talent on the roster plus it being Alabama. The push to bury Alabama is STRONG right now.
Are bama fans just now starting to find out about NIL or something? This has been going on for 3 years now.
But I get it, Saban was the ultimate NIL antidote so you really didn't have to fight against it until now.
2. Alabama hasn’t been immune to losing elite talent so far in the NIL era.
Posted on 1/17/24 at 8:59 am to Roll Tide Ravens
Trust me every fan base has asked and nobody really truly knows how NIL works. We just know that if you get caught by the NCAA like FSU did, then you did some really really stupid or were really careless about it.
Posted on 1/17/24 at 9:01 am to Roll Tide Ravens
The collectives centralize donations. They then sign players to deals to do social media posts, go to booster events, or do charity work i.e. using your NIL to further the goals of the collective *wink wink nudge nudge*. These are usually minor events or posts and completely out of line with market value for what the player is actually providing. The collectives have to have stipulations that this is not for actually playing for a certain team, but most contracts are 6 months so they can quickly drop a guy if they transfer. This way the collective argues that they are only compensating the player for their NIL and not their play for a certain team.
It's a complete farce and a bastardization of what the original intent was, but that's the reality when the NCAA ceded trying to create a rational system and got slapped down in court.
The head of USC's collective did a long interview that's on Youtube that goes over how a lot of this works.
It's a complete farce and a bastardization of what the original intent was, but that's the reality when the NCAA ceded trying to create a rational system and got slapped down in court.
The head of USC's collective did a long interview that's on Youtube that goes over how a lot of this works.
This post was edited on 1/17/24 at 9:10 am
Posted on 1/17/24 at 9:02 am to Roll Tide Ravens
quote:
The schools themselves would not be involved in paying the players.
It is illegal for the schools to be involved with NIL today
quote:
. So for many of these players, are they essentially signing an “NIL deal” with a booster who then pays them money for nothing other than playing the sport for that booster’s team? Are these collectives just handing money out of a big pot?
Basically, but I believe there are obligations for the players.
Posted on 1/17/24 at 9:03 am to usc6158
quote:
usc6158
Thank you for giving an actual answer. That makes sense and is sort of along the lines of how I was thinking these collectives are able to operate the way they do.
Posted on 1/17/24 at 9:04 am to ReauxlTide222
Alabama frickED
CFB STACKED
CFB STACKED
Posted on 1/17/24 at 9:08 am to TheOcean
quote:
Alabama frickED CFB STACKED
Yeah, this is more along the lines of the response I expected. Even though this is a general question about NIL, not Alabama specifically.
This post was edited on 1/17/24 at 9:08 am
Posted on 1/17/24 at 9:26 am to lsubatman1
quote:
But for the most part its pay for play with the illusion that they are using their likeness to endorse a business.
Pay for play is part of it, but I think the part most miss is that it’s pay for influence.
Being a power broker at a major university has massive financial perks. These donors aren’t putting in millions of dollars just because they’re fans of the game.
I’m not going to pretend I’m financially well off enough to be in the big donor bracket, but I do have control over substantial vendor contracts through my job. Almost everyone will offer you private practice passes, box seats, private recruiting opportunities for students you want to hire, etc. to help land a deal.
The institutions being tax-payor backed makes this all a bit seedy, and is why anyone that trots out a “Muh free market” argument when talking about NIL has no idea what they’re talking about.
Posted on 1/17/24 at 9:34 am to usc6158
quote:
The collectives centralize donations. They then sign players to deals to do social media posts, go to booster events, or do charity work i.e. using your NIL to further the goals of the collective *wink wink nudge nudge*. These are usually minor events or posts and completely out of line with market value for what the player is actually providing. The collectives have to have stipulations that this is not for actually playing for a certain team, but most contracts are 6 months so they can quickly drop a guy if they transfer. This way the collective argues that they are only compensating the player for their NIL and not their play for a certain team.
It's a complete farce and a bastardization of what the original intent was, but that's the reality when the NCAA ceded trying to create a rational system and got slapped down in court.
Great info. And 100% right.
Posted on 1/17/24 at 9:55 am to Roll Tide Ravens
quote:
Are these collectives just handing money out of a big pot? I
Well yea
Posted on 1/17/24 at 9:59 am to diat150
quote:
the sport fricked itself. they should have just proposed paying a salary.
I don’t see how that really would have changed the equation at all.
Posted on 1/17/24 at 1:09 pm to TomRollTideRitter
quote:
I think the part most miss is that it’s pay for influence.
Sure it is.
Posted on 1/17/24 at 5:22 pm to Tigertown in ATL
quote:
That’s sort of my impression, as well.
Its explicitly not pay for play; that's still very very illegal under NCAA rules.
The problem is that people don't perceive it as anything else; they see player get check, player play, ergo its pay for play.
It isn't, though; you don't have to play, you don't have to even try-- heck, there were even poorly written NIL deals early on where a kid didn't even have to stay on a roster to collect payment.
Now, your contractual obligations may be essentially non-existent- but they cannot be contingent on field/court production/participation.
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