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Some NIL research and more thoughts ...

LawDawg86

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Jan 2, 2015
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A post asked if the Vent could get together and make donations to pay NIL benefits to a UGA player.


That got me to thinking about this. I have posited before that UGA Vent, LLC could be formed, 100 of us could contribute $1000 giving us a pool of $100,000 to use for NIL payments. We could require attendance at a tailgate, post-game, provision of game worn jerseys, or whatever it is that we believe is worth $100K, or we could do $10K for 10 players. Aside from the enjoyment we would get with our 10 players, we also would hope that it would get out that "if you go to UGA, they have a bunch of idiots who will pay you $10K to hang out with them" and that would make UGA more attractive a place to land.

Now, if we can figure this out, so can every other crazy CFB fan. What's to keep this from happening? Because at the end of the day, do we really want this to happen. Do we want the very rich people to be able to simply throw out enough money to influence players to go to school X? We know there are some that would do that.

The first thing you think about is that there might be a requirement that there be a legitimate business purpose. But that can't be enforced. Athens Ford might be able to show they can sell cars. But I, as a member of Vent LLC can argue that my desire to get game worn jerseys, or whatever, is just as important as what Athens Ford wants. Who would decide? Why limit what the players can make. So, I can't see the NCAA every trying to establish what is or isn't legit ... it's in the eyes of the beholder.

As a further example, I could pay 2 players to play Fortnite with me once a week. I would sell the 4th slot to the highest bidder. Now, some of my fellow ouldes might say, "video game playing, that's not legit." But, I'd be willing to bet I'd find some takers for my proposition if I had Gurley and Marshall as my two players (back in the day, of course). Who is to say that my little venture is less significant than Athens Ford? The point being is that the value of a players NIL is in the eye of the beholder, and the NCAA doesn't want to to go down the rabbit hole of trying to enforce and define that.

As it currently stands, a half dozen states have NIL legislation starting in less than a week. To try and keep all schools equal the NCAA has/is releasing a one page outline letting all schools know that even if their state doesn't have NIL legislation, they won't be violating NCAA rules to allow their players to sell their NIL. The following provisions are significant:

CBS Sports obtained an internal NCAA document titled "Proposed Alternative Rules Amendment." Though that document -- slightly more than a page long -- is still going through edits, it details the NCAA's strategy.

- An athlete will not be penalized for profiting from their name, image and likes in states that have NIL regulations.

- Schools shall post on their websites "written policy governing NIL" prohibiting payments from boosters "in exchange for athletic performance or attendance" at that school.

It is important to note that restrictions against cheating to get a recruit "shall cease to be applicable" if it conflicts with any state's NIL law.


That last paragraph is a doozy. Basically, the NCAA recongizes that at the end of the day, they can't take on all 50 states over their NIL legislation. And, they recognize that boosters will in fact try to take advantage of this as a way to legalize dropping bags. So, while they want to prohibit boosters from making payments, they know at the end of the day they can't. Why? Because it doesn't make sense ... my 2 scenarios above would not be allowed, when at least one is legit, the other probably a bag dropping move. Athens Ford, that is owned by a Dawg fan (hypotehitcally) couldn't pay UGA players for NIL, but Athens Kia owned by a Georgia Tech fan could? Yeah, let's see that hold up in court. Let's see the NCAA tell Phil Knight and Nike that they can do NIL with players from every team, except Oregon. LOL.

With that in mind, let's take a look at the Georgia NIL law, House Bill 617. It's only 4 pages long, and nowhere in it does it refer to "boosters" or "alumni." There is this language:

Such compensation may not be provided in exchange, in whole or in part, for a current or prospective student athlete to attend, participate, or perform at a particular postsecondary educational institution.

The way that is written, it's easy to get around it. Players will go to the schools that give them the best NIL opportunity, so it can't mean that. So long as their isn't a direct, written, quid pro quo that to earn this money you have to attend UGA, then no one can enforce that. Players knowing they can make bank from Vent LLC, is different from agreeing to get the money in exchange for deciding to go to UGA. In other words, it's an unspoken condition ... you know if you to to UGA there are dozens of Vent LLCs, car dealerships, and rich alumni who will pay you for your NIL. Let's see the the NCAA try and regulate that.

The only thing it limits is that a player can't sign an NIL contract that contradicts their UGA scholaship contract. I presume this to mean they can't represent Adidas if UGA is Nike, and they can't run promos for strip clubs or things like that.

Based on that, and the NCAA's own words, any UGA athlete can take money from boosters so long as it is market value for their NIL which they will in essence be setting. What is the market value? Whatever the market will bear.

To conclude, the NCAA's own language is pre-empted by state law. And the state law is so amorphous as to not really be a limitation. While I am sure some will overstep the line, in general I think you are about to see all sorts of legal bag dropping and I am not sure there is anything the NCAA can do about it. While I am all for the players getting paid, I do see this as a very wild, wild west scenario that is going to disrupt the game I love. I just hope it works out in the end.
 
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