🏅Michigan lawmakers are trying to break NIL

Hey there,

The NIL landscape is changing so rapidly now that House has been approved – It’s actually been hard to keep up with all of the changes in fact. But that’s why we’re here to decode the NIL landscape for y’all.

That’s exactly what’s happening today. First, we want to talk about a newly introduced NIL law in Michigan that pits the its schools directly against the House Settlement’s terms – as well as their agreement to remain in the Big Ten. Next, we’re looking at exactly how many non-revenue teams have been cut since the settlement was passed – and what it’s effect could be on USA Olympics. Lastly, we are looking into the new rules of NIL contract buyouts, which will count against the rev-share cap.

It’s all coming up now… let’s get into it!

Do you want to get in touch? Good news, you can do exactly that by emailing us at [email protected]. We love to hear from you!

— Cole and Collin

The Big 3

This Michigan Law says “No” to NIL Go

A new NIL bill in Michigan is going further than any bill before it. Not only would teams like Michigan and Michigan State not be required to report deals to the NIL Go clearinghouse… it would actually make reporting those deals illegal. Yes, seriously. 

What this bill would do is essentially hamstring the NIL clearinghouse’s ability to assess whether the NIL deals these schools are striking are “legitimate” NIL or not, meaning they could keep paying players with impunity. Oh, and the bill also prohibits schools from assisting in investigations into their non-compliance. 

The bill is really important because it’s actively restricting schools from doing otherwise, instead of saying they don’t have to abide by the rules – that’s a key difference. There’s a chance the bill threatens their place in the Big Ten, however, as the conference forces every school to abide by the House Settlement rules. (More)

Olympic Sports are Disappearing Post-House

Schools started to reevaluate which sports would stick around post-House before the settlement was even passed… but now that it has been approved, there’s been a rapid deterioration of Olympic sports programs across the country. 

Track and field, gymnastics, and swimming programs seem to have been hit quite hard by this change, but none so bad as tennis. In the past 12 weeks, over twenty NCAA tennis programs have been discontinued, and the number is rising seemingly every day.

This is all because of the funding squeeze brought on by the House Settlement. Because of the rev-share cap, schools are essentially operating with about $20 million less than they had a year ago. Even the biggest schools don’t have unlimited funds for athletics, which is unfortunate news for the USA’s Olympic dominance. (More)

Contract Buyouts Count Against the Cap

We’ve been curious as to how buyouts would work under the House Settlement – well we finally have answers. The 36-page Q&A the NCAA released helps explain how contract buyouts will actually count against the rev-share cap:

These buyout rules essentially de-incentivize transferring for both the schools and the players, because now there are financial penalties – for both parties – for a buyout. I’m not sure exactly how this would apply to leaving for the NFL or NBA draft, but I’d expect it’s a similar payout. 

After a few years of total athlete control over the portal, these clauses could actually swing some leverage back into the schools’ favor. These buyouts, combined with more structure around the portal itself, could spell the end of the transfer madness we’ve seen the last few years. (More)

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NIL BLITZ

♦️ Diego Pavia could have left Vanderbilt for $4 million, but decided against it

♦️ Louisiana’s new sports betting tax raise will offset rev-share costs

♦️ A French basketball league said that NIL is stealing young basketball players from Europe

♦️ Here’s how much a recruiting staffer makes at Texas A&M

♦️ Tennessee softball’s Karen Weekly thinks that tampering is rampant in the sport

♦️ Ohio State Athletics announces the Center for Sports Intelligence and Strategy to help deal with resource allocation

♦️ Will the House Settlement end transfer portal chaos?

♦️ NCAA President Charlie Baker says the House Settlement helps them avoid “bankruptcy”

♦️ Florida public schools can use up to $22.5 million in “auxiliary” funds to power athletics

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BATTER UP

Today’s Poll Question:

Last Edition’s Poll Results:

House Settlement… good or bad thing?

• Good thing overall - 26%

• Bad thing overall - 38%

• Eh… I’m not sure - 36%