Newsletter, Image, Likeness Vol. 48: The High School Landscape Is Quickly Catching Up

The Weekly Longer NIL Thought.

The big news this week is that high school athletes in Georgia can now enter into NIL agreements. The high school athletic association felt the pressure related to the potential of blue-chip athletes leaving the state and decided to cave in.

The vote was 65 in favor and 10 against.

Here are the guidelines:

It did not take long for a Georgia-based high school athlete to enter into an NIL deal. Per Icon Source , what is believed to be the first such deal was one that it brokered between basketball player Isaac Bealer and Webb Wealth Advisors.

Now, the question is which states will be next?

I would not be surprised to see Florida follow in the footsteps of Georgia in the near future. The Florida High School Athletics Association (FHSAA) is scheduled to meet in November and I would actually be shocked if the FHSAA did not enact a plan to allow high school athletes in the state to monetize their fame. It has already stated that it is in the process of drafting a proposal that will be given to its board of directors for review at an upcoming meeting.

Other states that do not currently permit high school athletes to enter into NIL deals include Alabama, Arizona, Delaware, Hawaii, Indiana, Michigan, Montana, North Carolina, Ohio, South Carolina, South Dakota, Texas, West Virginia, Wisconsin, and Wyoming.

If Florida comes on board, then how long will it be before Alabama feels compelled to do the same? Texas would certainly feel the pressure, right? What about North Carolina and South Carolina?

It is possible we have the vast majority of states allowing NIL for high school athletes before Summer 2024.

NCAA's Division I Council Proposes Modifications To NIL Policy.

The NCAA frames it as "boosting student-athlete NIL protections," which is so paternalistic of the organization hanging on to dear life by a thread.

Nothing is approved, but the DI Council did unanimously vote to introduce the proposals, which could be adopted in January 2024.

Here are the "highlights":

• development of a voluntary registry for NIL service providers (i.e. agents, financial advisors, and others who are involved in NIL arrangements) with information such as the educational background and fee structure of those service providers;
• requirements for disclosure and aggregate reporting of certain elements of NIL agreements for any agreements exceeding a certain value (with $600 used as an example);
• development of best practices for NIL contracts such as recommended contractual terms and information in NIL agreements (with possible terms/information including a description of deliverables, payment structure, term, and termination clause); and
• the creation of an education program for prospects and current student-athletes, as well as service providers and licensees (such as how to read contracts, awareness of arbitration provisions, etc.).

It isn't clear whether lawyers who review NIL contracts would be included within the scope of "others who are involved in NIL arrangements" and thus be permitted to voluntarily register with the NCAA.

I thought it was funny that the NCAA said the registry would allow athletes to review and/or rate the service providers similar to a "rate my professor" platform.

I am interested in learning more about the dispute resolution system that the NCAA wants to establish for athletes experiencing issues with registered service providers. Will this be a forum similar to what the various professional players' associations provide for disputes between athletes and agents?

Is it weird that I don't find myself opposed to much of what is being suggested? A voluntary (not mandatory) registration process is fine. Recommended (not required) contractual terms are OK. Educational programs are a wonderful idea. Required disclosure of contracts to the NCAA or a third-party designee still doesn't sit well with me, although the silver lining would be if the athletes' identities were removed.

In-depth Piece On Why Spartan Dawgs 4 Life Voided Michigan State NIL Contracts.

Good work by Pete Nakos on this article and I always appreciate a solid quote of yours truly.

Nakos reports that the apparel brand launched to support NIL activities canceled Michigan State football players' NIL deals as they were headed to Iowa City to take on the Hawkeyes. Roughly 35-40 players under contract quickly changed to less than 5 continuing with their deals.

Nakos says that multiple sources indicate the agreements included a simple termination clause that allowed Spartan Dawgs 4 Life to terminate contracts at any time.

Here's what I said to Nakos: "If you’re the collective or the collective’s legal counsel, then you are going to want language in the agreement that is quite friendly and allows a quick and dry termination. So, it’s fairly standard for an initial draft to contain this type of language. That’s why it’s so important for the athlete to have strong legal counsel to spot such language and use any available leverage to negotiate a modification before execution."

85 Utah Football Players Receive Ram 1500 Trucks.

This is one of the wildest team-wide NIL deals I have seen.

Utah's NIL collective, the Crimson Collective, is providing a truck to all 85 scholarship members of the Utah football team.

The retail price of each truck is $61,000. But the athletes aren't becoming the owners of the trucks. Instead, they don't have to pay the leasing price. However, it is believed they will still be required to cover any necessary taxes.

NIL Didn't Kill Competition In College Football?

Many knew it was just fear mongering. But now it seems like it's becoming quite clear for most that NIL hasn't created a larger gap between the "haves" and "have-nots."

As I said to Dennis Dodd for his article, "Part of the commentary has revolved around the theory that the rich would get richer and the divide between the powerful institutions and those beneath would only widen. That could not be further from the truth."

"In reality, the existing structure entrenched certain programs in their positioning and made it incredibly difficult for a shift in the balance of power. That is no longer the case in this new world of NIL coupled with the transfer portal."

Duke's Mayo Bowl Partners With OpenDorse On NIL Marketplace.

The intention is for athletes participating in the game to be able to easily reach local deals with Charlotte-based businesses leading up to the event. Fans will also have the ability to pay players in exchange for NIL activities.

Adidas Signs Michael Penix Jr. And Rome Odunze As 1st NIL Football Athletes.

Per Adidas' press release, "both athletes will proudly represent the three stripes and participate in brand marketing campaigns."

Tennessee QB Joe Milton Signs With Panini America.

It's an exclusive, multi-year deal where Milton will be featured in Panini's collegiate and NIL products.

USC's Zachariah Branch Signs With C4 Energy.

“Hustle, highlights, energy,” C4 wrote on Instagram. “It’s all in his DNA. Welcome to the squad.”

The brand has also signed an NIL deal with Texas QB Quinn Ewers.

There Haven't Been Many NIL-Related Disputes Yet.

But I vaguely wrote about one I was recently involved in as counsel, removing the names of the parties for the time being.

Final Thoughts.

That is it for Vol. 48 of Newsletter, Image, Likeness. Thanks to the more than 7,410 people who have subscribed to this newsletter thus far, and please feel free to share this free resource with others on LinkedIn or elsewhere.

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