The top rulemaking group of the NCAA Division I schools broke a longstanding stance on athlete compensation and approved policy changes on Wednesday that will greatly improve athletes’ ability to make money with their name, image and likeness starting Thursday .
The decision announced by the NCAA was made hours before any law or regulation in more than a dozen states that will have the same effect.
The facility will remain in place until federal law or new NCAA rules are passed.
“Given the variety of laws passed nationwide, we will continue to work with Congress to develop a solution that creates clarity at the national level,” NCAA President Mark Emmert said in a statement. “The current environment – both legal and legislative – prevents us from offering a more permanent solution and the level of detail that student athletes deserve.”
Now the NCAA is on the verge of the most profound change in the college sports landscape since Title IX, the gender equality law enacted nearly 50 years ago.
Under the new agreement, college athletes will be able to participate in activities including advertising contracts, social media use for payment, and compensation for coaching, personal appearances, and autographs.
You will be able to do all of this in an environment that, at least for the time being, will have far fewer fixed boundaries than the schools expected after a vote on a detailed set of rules closed in January.
Schools in states with laws on the name, image and likeness of athletes (NIL) “are responsible for determining whether these activities comply with state law,” the association said.
Schools in states without NIL laws will be able to develop their own guidelines, with the NCAA only saying the association upholds its “bans on pay-for-play and inappropriate recruitment incentives”.
ANALYSIS: The NCAA’s band-aid approach could – and should – have been avoided. Now there is only confusion.
MORE: Read about some student-athletes who are already making money
A question-and-answer document addressed the specific question of whether schools can arrange NIL opportunities for athletes by saying, “Under the NIL Preliminary Policy, schools and student-athletes are expected not to use NIL transactions to compensate for athletic participation or performance or as an inappropriate incentive. ”
“It puts a heavy burden on schools as to how to proceed,” said Tom McMillen, president and CEO of the LEAD1 Association, a group that represents the athletics directors of the Football Bowl subdivision. “Schools could be very permissive and it would help them recruit. That’s one possibility. I don’t know if there is any downside to being permissive.”
Mid-American Conference Commissioner Jon Steinbrecher said, “I think the values of the institutions will shine through. This is a good day. We have talked about modernizing our rules for eons. This will be a dynamic process and we need a national solution. “
Wednesday’s decision marks the culmination of a series of events over the past 12 years that have pressured NCAA schools to abandon a standard of amateurism they have defended through litigation that has cost the association and major conferences hundreds of millions of dollars to have cost court settlements and attorneys’ fees.
There have been a number of antitrust proceedings since 2009, based on a unanimous Supreme Court ruling against the NCAA last week. And there have been state law changes on behalf of athletes that began in California in 2019 and expanded to a Florida law that set July 1, 2021 as the deadline for other states to compete.
The NCAA was due to vote on detailed rule changes related to NIL in January, but brought the matter up when the Supreme Court decided in December to hear the case it ruled on last week and then speak days before the scheduled vote the Justice Department concerns about the plan.
OPINION: The Supreme Court doesn’t buy what the NCAA sells, and neither do we
ANALYSIS: What the Supreme Court Ruling Means and What’s Next for College Athletes
MORE: NCAA President Mark Emmert says the fight will continue
Meanwhile, federal lawmakers began to take an interest in the issue and tabled several bills that expired as the 2020 Congressional session ended and the Democrats regained control of the Senate.
In 2021, while the NCAA remained on hold, the number of states enacting laws starting July 1 skyrocketed. This prompted the association to step up its efforts to create federal legislation. This year, however, five bills stalled as the NCAA sought not only a federal standard for athletes’ NIL activities, but also protection from ongoing antitrust challenges. Democratic lawmakers have responded by asking schools to improve other services for athletes, such as health care and safety standards.
“Today’s NCAA decision is welcome confirmation that college athletics must do more for college athletes,” Senate Commerce Committee Chair Maria Cantwell, D-Wash., Said in a statement. “However, today’s interim measure is not a substitute for a national standard that will not only give our student athletes the ability to control their own name, image and rights, but also include health care, safety, scholarships and transfer protection.”
Blake Lawrence – the CEO of Opendorse, a sports technology company that helps athletes increase their advertising value – said in an interview with USA TODAY Sports on Wednesday: “We are preparing for 100,000 student athletes to join our platform in the near future will register 48 hours. There are already 30,000 (registered) and we reckon with 100,000 and more. “
Ryan Detert, CEO of Influential, a company that connects social media influencers with brands and works with a number of Fortune 500 companies, forecast a broad and lucrative overall market for the remainder of this year.
“I would be very surprised if (overall) low double-digit million amounts didn’t flow into the hands of both athletes at large universities and nano-, micro-influencers who may not only be active in the big sports like basketball, baseball, football – but (in) all kinds of sports. Lacrosse, women’s football, everything, “Detert told USA TODAY Sports” … I know we will make several million ourselves, just based on the current pipeline and current interest. And it makes a lot of sense because we’re running these Gen Z and Millennial campaigns with some of the biggest brands in the world. “
When asked about the types of activities and funds possible, Lawrence explained a wide range of possibilities.
“It’s clear that there are a handful of student-athletes on every team who do things like their own line of merchandise. So maybe starting tomorrow, use a Shopify landing page to sell goods online, ”said Lawrence. “Others who have a car dealership that will provide them with a free car from tomorrow. I mean a lot of different things happen, that’s for sure. …
“I’d say these early deals have some in the five-digit range, some in the four-figure range, and some closer to the hundred-dollar range. I have yet to be made aware of something in the six-digit range in terms of market opportunities, but I’m sure there will be some at some level. ”
Follow college reporter Steve Berkowitz on Twitter @ByBerkowitz
Comments are closed.