Winds of change with NIL

[VawlsYall]

I hate NIL that is all.

 

[MontyPython]

TL;DR VERSION: Yes, depending on the facts, there are numerous real world scenarios where a contracting partner who breaches the contract can cost you far, far more money than you paid them.

LONG VERSION: Liquidated damages clauses can be fair and necessary in certain situations. Say you are working with someone with some sort of cutting edge technology and you contract with that someone to assist with some aspect of the development. In that situation if that someone broke faith with you and sold this technology to your competitor, then yes, a liquidated damages clause where that someone owed you 10 times what you paid them is probably fair, because they have cost you far more than that.

I can imagine a set of facts in the current CFB landscape where such a liquidated damages clause might be fair. Imagine if we had a QB we expected to come back and at the beginning of the Portal period we locked him in with a new deal and a raise and paid him a 25K signing bonus and then on the last day of the Portal window, the QB transfers to Florida anyway. In that situation not only would UT be out the 25K, but we'd be out the opportunity to obtain a comparable replacement. In such a situation, liquidated damages far in excess of the 25K may be justified. The kid may have cost us a playoff spot and the attendant revenue vs. a Music City Bowl payout. These kids want to be adults making big money, well these are the sort of consequences adults in the business world can face when they sign a contract, take someone's money and stab them in the back.

P.S., we may have lived this scenario with Nico, but it randomly proved to be an upgrade for us. If this suit is successful it may begin to bring some order to chaos because the players and their handlers will finally see some consequences for bad behavior. I don't care what school is doing this, it benefits everyone if Wilson truly signed a contract, took money and then breached the contract days later. That kind of behavior has to be curtailed.

You make some good points.

The problem with the current landscape, in general, is it's still the wild west. There are few - if any rules - governing the NIL and portal situation. But I'm not sure if the NFL solutions are the best or even legally possible.

 

[tennrich1]

I completely support UGA (in this one situation only). I hope they win and this is the catalyst that makes contracts necessary.

Yeah I'd agree. In the current situation, contractual binding agreements with both parties with punitive damages if said contract is broken, IMO, is the only way it can survive. However, I'd be surprised if the current situation in collegiate sports will continue..

 

[MontyPython]

How is the UGA situation different from the following

Let's say it was a coordinator. He got paid $150K for 1 month of work until he got hired away for a HC position. Let's say his buyout was $2M if he left for another gig.

I dont really see how that is any different..

Hmm... true but... first of all, we're dealing with kids. Literally minors in some cases.

As a practical matter, throwing hundreds of thousands of dollars at an 18 year old is the perfect recipe for disaster.

And in this particular case, the kid was there a whopping 2 weeks. He obviously didn't like it so he bolted. I don't see how GA has been F'd out of $400K in damages.

 

[tennrich1]

You make some good points.

The problem with the current landscape, in general, is it's still the wild west. There are few - if any rules - governing the NIL and portal situation. But I'm not sure if the NFL solutions are the best or even legally possible.

I posted almost the same verbiage right after you but edited my post ....

 

[SayUWantAreVOLution]

How is the UGA situation different from the following

Let's say it was a coordinator. He got paid $150K for 1 month of work until he got hired away for a HC position. Let's say his buyout was $2M if he left for another gig.

I dont really see how that is any different..

The coordinator is an employee of the University.

Is that what you want the players to legally be?

Think carefully before you answer. Do you like the ruse that the college game is amateur athletics or do you REALLY want it to be a pro league?

 

[BigOrangeMojo]

The coordinator is an employee of the University.

Is that what you want the players to legally be?

Think carefully before you answer. Do you like the ruse that the college game is amateur athletics or do you REALLY want it to be a pro league?

Both signed contracts though. We cant selectively enforce only certain parts a negotiated contract..

Honestly, these kids that are going to UGA all have agents, etc. Should have negotiated better...

 

[SayUWantAreVOLution]

Both signed contracts though...

Honestly, these kids that are going to UGA all have agents, etc. Should have negotiated better...

The kid CANNOT sign a "pay to play" contract and play in the NCAA.

The article states they're suing for "liquidated damages" NOT breach of contract. They're going to have to prove that him not playing is costing them $390k, which is ridiculous.

The damages CANNOT be for breach nor punishment for breaking the contract. It's silly. He's not costing GA $390k because he transferred.

 

[SEC__Headgear]

"The Bulldogs paid Wilson a total of $30,000 from the disputed contract. Because of the way the deal was crafted, Georgia says Wilson owed it $390,000 in a lump sum within 30 days of his decision to leave the team. Drummond declined to comment when asked why the damages being sought are much higher than the amount Wilson was paid."

Shouldn't the Dawgs just sue for the $30K?

What's next - they gonna sue Jared Curtis for causing emotional distress by flipping to Vandy?

Yep! Just business.

 

[deezvols]

"The Bulldogs paid Wilson a total of $30,000 from the disputed contract. Because of the way the deal was crafted, Georgia says Wilson owed it $390,000 in a lump sum within 30 days of his decision to leave the team. Drummond declined to comment when asked why the damages being sought are much higher than the amount Wilson was paid."

Shouldn't the Dawgs just sue for the $30K?

What's next - they gonna sue Jared Curtis for causing emotional distress by flipping to Vandy?

Welcome to a litigious society

 

[BigOrangeMojo]

The kid CANNOT sign a "pay to play" contract and play in the NCAA.

The article states they're suing for "liquified damages" NOT breach of contract. They're going to have to prove that him not playing is costing them $390k, which is ridiculous.

The damages CANNOT be for breach nor punishment for breaking the contract. It's silly. He's not costing GA $390k because he transferred.

Liquified damages are put into a contract when its hard/impossible to quantify the actual cost of damages. Both sides agreed to this amount.

How do you know the actual cost of damages? What if Georgia had to overpay to fill the hole from the recruiting class? How much did Georgia spend on recruiting him? On his replacements? Did Georgia lose out on another player that could have helped them to win 1 game. And on and on and on...

 

[SayUWantAreVOLution]

Liquified damages are put into a contract when its hard/impossible to quantify the actual cost of damages. Both sides agreed to this amount.

How do you know the actual cost of damages? What if Georgia had to overpay to fill the hole from the recruiting class? How much did Georgia spend on recruiting him? On his replacements? Did Georgia lose out on another player that could have helped them to win 1 game. And on and on and on...

That's for them to prove in court and more power to them because that's how America works but it's an awful look for recruiting for GA, which granted doesn't bother me but it's not a tactic I'd want UT to use.

All of this is just pushing the courts, daring them really, to say, "WTH? These are employees, not student athletes. They have these contracts for play just like employees. From now on, legally, they are employees of the school."

VN will meltdown.

 

[BigOrangeMojo]

That's for them to prove in court and more power to them because that's how America works but it's an awful look for recruiting for GA, which granted doesn't bother me but it's not a tactic I'd want UT to use.

All of this is just pushing the courts, daring them really, to say, "WTH? These are employees, not student athletes. They have these contracts for play just like employees. From now on, legally, they are employees of the school."

VN will meltdown.

Once again, the kid signed it. Both sides agreed to the terms. No different than a building contractor paying liquified damages if they fail to meet timelines in a contract. No employee-employer relationship there either....

Not arguing UGA is doing the right thing here. I agree with you that they arent...

 

[SayUWantAreVOLution]

Once again, the kid signed it. Both sides agreed to the terms. No different than a building contractor paying liquified damages if they fail to meet timelines in a contract. No employee-employer relationship there either....

Not arguing UGA is doing the right thing here. I agree with you that they arent...

I agree that the main thing GA is doing is showing agents what to not agree to in contracts.

I mentioned elsewhere that aTm apparently had contracts which tried to "claw back" or something on NIL if a guy transferred and got called out by a player who transferred who posted something like "be careful before you sign with them" and to message him about it. I assume aTm realized that wasn't a good idea because I've not heard more about it.

Edit: it was Walter Nolan who posted a warning about aTm.

That's the most likely result. "We're not signing that because GA sued a player......"

 

[Devo182]

Seems like players should get paid per game played divided by the contract amount for that year. If they make it to a bowl game/CFP, the same rate of pay should apply. So if Billy is making $120,000 to play OT and he plays 12 games, he should get $10,000 a game (same amount for bowl game/CFP game). I'm sure its not nearly that simple with agents/parents involved.

On another note, considering Tennessee has no state income tax, I'd hope the coaches play that up as much as possible when compared to Ohio, Penn, Cali, Mich, etc.

It's almost like they should have a CBA and contracts...

All of this tiptoeing around the real solution is pathetic and unnecessary.

We all know (as do the "leaders" of CFB) that everything becomes a crab eventually. Which makes you wonder what they are trying to get out of it in the meantime.

Imo just trying to extend their own large contracts (HCs, ADs, commissioners, other administrators, etc ). There's no other purpose. Just trying to continue their grand scheme of being paid lavishly by the unis, while NIL is funded by fans and boosters.

Smdh

 

[Devo182]

I mean, the whole system needs accountability. We went from the schools having all of the power and the players not benefitting (outside of scholarship, room and board and everything else) to the other side of the pendulum, where the players benefit and the schools take on all of the liability.

There has to be a balance. Do I think it's fair that a player can get "paid" for his services, both present and future, and then not be held accountable if he doesn't hold up his end of the bargain? No, I don't. If I accept extra benefits from my employer (say, tuition reimbursement to pay for school, or a sign on bonus), then I am required to either finish out the terms of the benefit, or I am required to pay it back.

There has to be some level of accountability. I'm all for Georgia in this one. Players can get paid, but they also have to have the other side of it of responsibility and consequences. Wanna get paid like pros, then act like pros.

It's extremely simple and every major sports league with paid players figured it out decades ago.

Which tells you how full of BS and disingenuous all of these leaders are.

 

[Devo182]

"The kid" signed a contract and then welched on it two weeks later. Play stupid games, win stupid prizes.

The stupid prize is suing for 12x more than he was ever paid?

Frivolous. He should sue UGA back

 

[Devo182]

It's time to add professional to the beginning of student athlete and let's get what's the equivalent to rookie contracts started. Oh, and you're going to have to set a cap or it's going to get really bad.

It's very clear they need a collective bargaining agreement and contracts with the unis (not NIL groups).

But why set a cap? There are no caps on coaches or ADs. Ofc the union could choose to have one, but with how much more they are worth, their leverage says it would be extremely high anyway. And then the TEX, TAMUs of the world would whine and not want one anyway

Funny thing is a program like Bama would love to cap it...then go back to Dodge Charger days

 

[Devo182]

The kid CANNOT sign a "pay to play" contract and play in the NCAA.

The article states they're suing for "liquidated damages" NOT breach

100%.

Fwiw:

 

[BigOrangeMojo]

100%.

Fwiw:

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Major issue with the "AI Analysis" is the collective isnt the ultimate plantiff but Univ of Georgia Athletic Dept will be (Item 2C). Given that Athletic Dept spends 4-5M annually to recruit and sign 25 kids, they will be far more likely to prove they had a significant expense far beyond 30K to recruit him and his replacement....

 

[SayUWantAreVOLution]

Major issue with the "AI Analysis" is the collective isnt the plantiff but Univ of Georgia Athletic Dept will be (Item 2C). Given that Athletic Dept spends 4-5M annually to recruit and sign 25 kids, they will be far more likely to prove they had a significant expense far beyond 30K to recruit him and his replacement....

I think THIS case doesn't have enough juice to be worth the squeeze. Give back the $30k because you were there 2 weeks, perhaps a bit more for recruiting, etc. In the world of NIL, this isn't going to amount to much IMO.

If a kid has been in the program for a year or 2, I think the money, time, training, etc become money worth talking about if they transfer.

The bad PR and negative recruiting by rivals you'll get for suing an athlete for transferring will probably outweigh the money.

 

[CAVPUT]

This is a total and utter dick move by the Dawgs. The kid only received $30K from them for the NIL deal and now they're trying to collect $390K from the player in what amounts to punitive damages because he transferred.

I doubt an arbitration judge will find for GA, as they have to prove how this kid transferring caused them $390K in damages. And plus this action amounts to liquidated damages which is illegal.

Ultimately, this stupid action by the Dawgs will probably be used as a legitimate tool by other teams against them with recruits moving forward... the premise being that if you sign an NIL deal with Georgia, you are effectively trapped with the team if you're unhappy and will be financially punished if you try to transfer.

Wilson signed a term sheet with Classic City Collective in December 2024, shortly before Georgia lost in a quarterfinal playoff game to Notre Dame, ending his sophomore season. The 14-month contract -- which was attached to Georgia's legal filing -- was worth $500,000 to be distributed in monthly payments of $30,000 with two additional $40,000 bonus payments that would be paid shortly after the NCAA transfer portal windows closed.

The deal states that if Wilson withdrew from the Georgia team or entered the transfer portal, he would owe the collective a lump-sum payment equal to the rest of the money he'd have received had he stayed for the length of the contract. (The two bonus payments apparently were not included in the damages calculation.) Classic City signed over the rights to those damages to Georgia's athletic department July 1 when many schools took over player payments from their collectives.

Georgia's filing claims Wilson received his first $30,000 payment Dec. 24, 2024. Less than two weeks later, he declared his plans to transfer.

Legal experts say Georgia's attorneys will have to convince an arbitrator that $390,000 in damages is a reasonable assessment of the harm the athletic department suffered due to Wilson's departure. Liquidated damages are not legally allowed to be used as punishment or primarily as an incentive to keep someone from breaking a contract.

I'm no legal eagle...thank goodness...but this kinda sounds like a buyout. Teams and coaches both have 'em so why not attach something similar to a NIL contract? Honestly, it makes a ton more sense than giving a kid a ton of money up front only to see him walk prematurely. Teams are damaged when kids bail. Why can't they sue for damages? They aren't "kids" anymore. They've got reps/agents and are professional athletes. Hate UGA, but I hope this becomes more of a trend to be honest.

 

[BigOrangeMojo]

I think THIS case doesn't have enough juice to be worth the squeeze. Give back the $30k because you were there 2 weeks, perhaps a bit more for recruiting, etc. In the world of NIL, this isn't going to amount to much IMO.

If a kid has been in the program for a year or 2, I think the money, time, training, etc become money worth talking about if they transfer.

The bad PR and negative recruiting by rivals you'll get for suing an athlete for transferring will probably outweigh the money.

I agree this is a bad look for UGA. The kid entered into an agreement with the collective in late 2024. The rights and responsibilities of NIL contract were assigned over to UGA in July 2025. (Im sure the NIL contract had an assignment provision)

The issue with the school taking over these deals is it becomes a legal slippery slope. If you choose not to enforce some contracts but not others, it gets slippery quick. Fot example, if you choose to enforce a female athletes contract but not a football players and you potentially run into Title IX issues quickly...

 

[BigOrangeMojo]

I think THIS case doesn't have enough juice to be worth the squeeze. Give back the $30k because you were there 2 weeks, perhaps a bit more for recruiting, etc. In the world of NIL, this isn't going to amount to much IMO.

If a kid has been in the program for a year or 2, I think the money, time, training, etc become money worth talking about if they transfer.

The bad PR and negative recruiting by rivals you'll get for suing an athlete for transferring will probably outweigh the money.

Not to mention the school probably doesnt want legal discovery into how Elo Modozie ( the replacment EDGE) was lined up and ready to go with the April portal....

 

[Devo182]

Major issue with the "AI Analysis" is the collective isnt the ultimate plantiff but Univ of Georgia Athletic Dept will be (Item 2C). Given that Athletic Dept spends 4-5M annually to recruit and sign 25 kids, they will be far more likely to prove they had a significant expense far beyond 30K to recruit him and his replacement....

Not related to commercial expenses/expenses of the collective.

He isn't an employee or compensated based on field performance. He performed marketing activities (supposedly ofc...). Did they have to spend extra money due to him no longer providing his promotional services?

Sounds like a play to make a nice little windfall. Don't see the contract being enforceable the way it's written. Jmo. Screw UGA