Does NIL Effectively Eliminate the 85 Scholarship Cap Rule

#1

MontyPython

It's Just a Flesh Wound!
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#1
It would seem the NIL has created a Wild West frontier right now for D1 football. For all intensive purposes, it would appear that the NCAA has thrown up its hands and created some guidelines and suggestions to implementing NIL rules, but left it up to individual states and institutions to determine said rules and implement/enforce them. Will this result in a giant clusterf*ck?

(See the three stories linked below for details).

Among many other important questions, one HUGE question:

Can Tennessee (and others) simply allow NIL payments to current and prospective players to simply "happen" (via boosters/others financial arrangements with player's agents, attorneys, others) and thereby circumvent the 85 player scholarship limit and/or annual cap/portal scholarship additions?

In other words, if a player is receiving a 5- or 6-figure NIL deal annually, this would effectively eliminate his need for a scholarship. The net result is that we (and others) could have a team comprised of 85 scholarship holders PLUS 20, 30, 50, etc. NIL holders, if NIL doesn't count towards scholarships (96% certain they don't).

In sum, does NIL have the potential to blow up the entire current NCAA system?


NCAA approves Name, Image and Likeness (NIL) policy

On June 30, 2021, the Division 1 Board of Directors approved an interim name, image and likeness (NIL) policy. This new policy allows all NCAA D1, D2 and D3 student-athletes to be compensated for their NIL as of July 1, 2021, regardless of whether their state has a NIL law in place or not.

The NCAA NIL rules do not override state, college/university or conference specific NIL rules. This means student-athletes need to review the NIL rules in the state where their school is located and check with their athletic department for any school and conference-specific rules to understand what limitations they will have on their NIL.

College student-athletes competing in states without an NIL law will have the freedom to receive compensation for their NIL however they see fit, as long as they do not violate pay-for-play or receive financial incentives to sign with or remain at a program.


Tennessee Signs NIL Law

The Volunteer State's law contains a broad exclusion that will allow a university to prohibit an athlete's involvement in NIL activities 'that are reasonably considered to be in conflict with the values of the institution.'

By DARREN HEITNER
May 12, 2021 at 12:12 PM


Tennessee has become the 15th state to have its governor sign a college athlete name, image, and likeness (NIL) bill into law and will require colleges to provide such rights to their athletes as of July 1, 2022.

The law does not allow an institution, or an officer, director, or employee of the institution to be involved in the development, operation, or promotion of a current or prospective intercollegiate athlete’s NIL, including actions that compensate or cause compensation to be provided to athletes. Additionally, the law prohibits an entity whose purpose includes supporting or benefiting the institution or athletic program from compensating or causing compensation to be provided to such individuals. This provision is similar to those found in the other laws on this subject matter, set to be effective as of July 1.

Tennessee’s law contains a broad exclusion that will allow a university to prohibit an athlete’s involvement in NIL activities “that are reasonably considered to be in conflict with the values of the institution.” Furthermore, the law carves out the ability for athletes to promote companies involved in gambling, tobacco, alcohol, and adult entertainment.

As with other states’ NIL laws, Tennessee will grant athletes the ability to be represented by sports agents and attorneys who are properly licensed in the state. It also takes an important element from Florida’s legislation, which requires all institutions to conduct a financial literacy workshop for athletes during their first full-time term of enrollment. It differs from Florida’s law in that there is no requirement for the instruction to once again be provided during the athlete’s enrollment at a university.

It is becoming very clear that states with schools in the Southeastern Conference feel compelled to pass NIL legislation and input an effective date that is the same or in proximity to the laws that have already been signed. States like Kentucky, Missouri, and Texas could be soon passing similar legislation.


NCAA name, image and likeness FAQ: What the rule changes mean for the athletes, schools and more


Who is making the rules?

There are roughly a dozen states that have laws in effect that dictate how college athletes can profit from their name, image and likeness. The NCAA has instructed individual schools in states that do not have a law in effect yet to craft their own policies based on loose guidelines that are designed to prevent pay-for-play deals and payments that are used as recruiting inducements.

Will schools be allowed to pay athletes directly?

No. Most new state laws and the NCAA rules explicitly prohibit schools from paying athletes directly for the use of their NIL or for any other purposes.

Can athletes hire agents to help with all this?

Yes. All state laws and NCAA rules allow athletes to hire professional help in the form of lawyers, agents and tax professionals and others. Those new relationships come with a major caveat, though. Agents can help with NIL deals. Their contracts can't stipulate that the agents would represent the athlete in future negotiations if they turn pro. The NFLPA warned professional sports agents in a statement Thursday to heed those restrictions.

Can athletes enter into NIL agreements with boosters?

The NCAA does not have any rules that restrict boosters from paying athletes as long as those payments are not directly for their athletic performance or an inducement for recruiting purposes*. Some new state laws address booster involvement in different ways, and some might need further interpretation before it's clear how involved boosters can be in paying athletes in those states.

(*Note: The concept that the NCAA has ANY control here is ludicrous. Boosters can simply say, "Hey, we compensated [insert player name] for his NIL for promoting our [insert product/service name]. Buzz off NCAA!" NET RESULT: NCAA can't do jack shart.)

Are schools allowed to arrange NIL opportunities for student-athletes?

Some state laws restrict schools from arranging deals for their athletes. The NCAA rules leave that decision up to individual schools, but it warns that schools need to be careful that they don't cross any lines into an area that could be considered paying the players or using NIL payments as a recruiting tool.
 
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#4
#4
We're not going to see any female volleyball players on the pole ... ... unfortunately.
 
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#8
#8
Serious question deserves serious discussion.

I'm not sure but it seems like that would be a pretty wide open loop hole. You could soon see all 5* players signing as preferred walk ons... with million dollar NIL deals already inked.
 
#11
#11
Aren't GPA requirements for scholarship athletes lower than standard admission for non scholarship athletes? I see no reason why an elite athlete would pass up a free scholarship. Even if they get a 7 figure deal, they'd be paying for food, rent, & scholarship out of pocket. Combine all that with the limit on how many players a team can travel with. It's not going to be a way to side skirt the scholarship limit. If it does get exploited then it will be stamped out in short order.
 
#12
#12
Serious question deserves serious discussion.

I'm not sure but it seems like that would be a pretty wide open loop hole. You could soon see all 5* players signing as preferred walk ons... with million dollar NIL deals already inked.
would be easy to fix. No NIL deals for PWOs.
 
#14
#14
Serious question deserves serious discussion.

I'm not sure but it seems like that would be a pretty wide open loop hole. You could soon see all 5* players signing as preferred walk ons... with million dollar NIL deals already inked.
It will simply depend on the 5 star's placement of the greed - team spectrum. If they want that extra $25k to $50k of benefits from a scholarship, then that is more on the greed side (not saying the person is greedy and also assuming the deals are >$1M a year).
 
#15
#15
I don't think it would affect the star players, but it might incentivize some of the lower rated 3 stars and 2 stars or preferred walk-ons to come to a bigger program if they can be guaranteed an NIL deal to cover tuition.
 
#16
#16
First off, we'll need to know the average air velocity of an African Swallow?
The airspeed velocity of an African swallow, while not carrying a coconut, is roughly 20.1 miles per hour.
 
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#20
#20
Pretty sure there are rules around how a player is recruited and when they must be on scholarship. Going to be hard to get deals signed up for guys who came be fully recruited
 
#22
#22
I am betting that the 85 player rule stays but, the thing that is troubling is that well funded colleges will work the NIL to basically buy the best athletes. I didn't read anything about an NIL salary cap. Has anyone else? The rich get richer and the poor just stay poor. This is one of many reasons I am turning to other sports and away from all these money deals. Where the money flows, evil follows as in rigged officiating, broadcasting, playing favorites, etc. Hope I am wrong but, this train has left the station and ten years from now College athletics will be even more "all about the money" and very little about getting an education and being a contributing citizen.
 
#23
#23
I don’t see it happening. For one, any player worth a Mil NIL will get it wherever they go. Why not get the free scholly on top of that?

Kid would REEEAAAALLLLY want to play for X school and help the team with an extra scholly to take such a deal.

Not to mention, there won’t be that many million dollar NIL deals for kids coming out of high school. Those will be rare and after this initial phase those will probably shake out only for upper classmen who have proven themselves.
 
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#24
#24
It would seem the NIL has created a Wild West frontier right now for D1 football. For all intensive purposes, it would appear that the NCAA has thrown up its hands and created some guidelines and suggestions to implementing NIL rules, but left it up to individual states and institutions to determine said rules and implement/enforce them. Will this result in a giant clusterf*ck?

(See the three stories linked below for details).

Among many other important questions, one HUGE question:

Can Tennessee (and others) simply allow NIL payments to current and prospective players to simply "happen" (via boosters/others financial arrangements with player's agents, attorneys, others) and thereby circumvent the 85 player scholarship limit and/or annual cap/portal scholarship additions?

In other words, if a player is receiving a 5- or 6-figure NIL deal annually, this would effectively eliminate his need for a scholarship. The net result is that we (and others) could have a team comprised of 85 scholarship holders PLUS 20, 30, 50, etc. NIL holders, if NIL doesn't count towards scholarships (96% certain they don't).

In sum, does NIL have the potential to blow up the entire current NCAA system?


NCAA approves Name, Image and Likeness (NIL) policy

On June 30, 2021, the Division 1 Board of Directors approved an interim name, image and likeness (NIL) policy. This new policy allows all NCAA D1, D2 and D3 student-athletes to be compensated for their NIL as of July 1, 2021, regardless of whether their state has a NIL law in place or not.

The NCAA NIL rules do not override state, college/university or conference specific NIL rules. This means student-athletes need to review the NIL rules in the state where their school is located and check with their athletic department for any school and conference-specific rules to understand what limitations they will have on their NIL.

College student-athletes competing in states without an NIL law will have the freedom to receive compensation for their NIL however they see fit, as long as they do not violate pay-for-play or receive financial incentives to sign with or remain at a program.


Tennessee Signs NIL Law

The Volunteer State's law contains a broad exclusion that will allow a university to prohibit an athlete's involvement in NIL activities 'that are reasonably considered to be in conflict with the values of the institution.'

By DARREN HEITNER
May 12, 2021 at 12:12 PM


Tennessee has become the 15th state to have its governor sign a college athlete name, image, and likeness (NIL) bill into law and will require colleges to provide such rights to their athletes as of July 1, 2022.

The law does not allow an institution, or an officer, director, or employee of the institution to be involved in the development, operation, or promotion of a current or prospective intercollegiate athlete’s NIL, including actions that compensate or cause compensation to be provided to athletes. Additionally, the law prohibits an entity whose purpose includes supporting or benefiting the institution or athletic program from compensating or causing compensation to be provided to such individuals. This provision is similar to those found in the other laws on this subject matter, set to be effective as of July 1.

Tennessee’s law contains a broad exclusion that will allow a university to prohibit an athlete’s involvement in NIL activities “that are reasonably considered to be in conflict with the values of the institution.” Furthermore, the law carves out the ability for athletes to promote companies involved in gambling, tobacco, alcohol, and adult entertainment.

As with other states’ NIL laws, Tennessee will grant athletes the ability to be represented by sports agents and attorneys who are properly licensed in the state. It also takes an important element from Florida’s legislation, which requires all institutions to conduct a financial literacy workshop for athletes during their first full-time term of enrollment. It differs from Florida’s law in that there is no requirement for the instruction to once again be provided during the athlete’s enrollment at a university.

It is becoming very clear that states with schools in the Southeastern Conference feel compelled to pass NIL legislation and input an effective date that is the same or in proximity to the laws that have already been signed. States like Kentucky, Missouri, and Texas could be soon passing similar legislation.


NCAA name, image and likeness FAQ: What the rule changes mean for the athletes, schools and more


Who is making the rules?

There are roughly a dozen states that have laws in effect that dictate how college athletes can profit from their name, image and likeness. The NCAA has instructed individual schools in states that do not have a law in effect yet to craft their own policies based on loose guidelines that are designed to prevent pay-for-play deals and payments that are used as recruiting inducements.

Will schools be allowed to pay athletes directly?

No. Most new state laws and the NCAA rules explicitly prohibit schools from paying athletes directly for the use of their NIL or for any other purposes.

Can athletes hire agents to help with all this?

Yes. All state laws and NCAA rules allow athletes to hire professional help in the form of lawyers, agents and tax professionals and others. Those new relationships come with a major caveat, though. Agents can help with NIL deals. Their contracts can't stipulate that the agents would represent the athlete in future negotiations if they turn pro. The NFLPA warned professional sports agents in a statement Thursday to heed those restrictions.

Can athletes enter into NIL agreements with boosters?

The NCAA does not have any rules that restrict boosters from paying athletes as long as those payments are not directly for their athletic performance or an inducement for recruiting purposes. Some new state laws address booster involvement in different ways, and some might need further interpretation before it's clear how involved boosters can be in paying athletes in those states.

Are schools allowed to arrange NIL opportunities for student-athletes?

Some state laws restrict schools from arranging deals for their athletes. The NCAA rules leave that decision up to individual schools, but it warns that schools need to be careful that they don't cross any lines into an area that could be considered paying the players or using NIL payments as a recruiting tool.

Whoa, now! This is way too much text for the average UT grad, to say nothing of us football fans. How about an intensive purpose executive summary for us pre-Madonnas?
 
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