Transfer portal and NIL Money, how they have changed college sports".

Voyageur

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Are you confusing "Letters of Intent", with a students intent to attend a certain University and compete in a sport(s) there? An NIL deal is completely separate from those.

From what I understand about an NIL "Deal", is it is a written contract. However, one rule the NCAA does enforce is "no pay for play contracts." The NIL deal is supposed to be just what the name implies "Name, Image and Likeness". So the athlete is signing that deal with someone that will profit from using any or all of those 3 things. Just like any written contract, as long as it is "legal contract", once both parties sign to it, it is enforceable.

As far as "services" to be performed by the athlete, guessing that would be stipulated in the contract, ie "promo's, tours, photo shoots, etc.", as would the amount of pay be stipulated. However, I don't think it can have anything to do with their actions in their particular sport. Meaning it can't say "You get paid for playing at this level or that level."

Somehow the deals are tied to the athlete playing for a specific team during the contract. Otherwise, they would be useless to one party, as to what they were intended to do.

The article below is a year old, so who knows if things have changed since it was written.

Middleton's understanding of it, at that time, was pretty much straight forward. It indicated the separation between the schools and the NIL money. So, what's changed? Essentially schools are now actually giving money directly to student athletes and being reimbursed by the outside collectives. The amount is insignificant what it means is that schools can give a player NIL money directly and essentially accepting it makes the agreement a binding contract. That's what Wisconsin is essentially doing from all outside appearances.

If Wisconsin and Lucas signed an agreement where he would get so much money over a period of time, and advanced him any portion of it, this would mean he's already collecting on what can be considered a contract. If you look at the situation that happened with A.J. Storr, you get a little better picture of what's happening.

AJ Storr has a partnership with Mass St. Collective, an NIL collective that supports University of Kansas student-athletes.

Explanation

  • Storr is a basketball player who transferred to Kansas from Wisconsin in 2024.
  • Storr was a top scorer for Wisconsin, averaging 16.8 points per game.
  • Storr was looking for a seven-figure NIL deal with Kansas, but the Jayhawks offered $750,000. Storr turned down the offer.
  • Storr also considered NIL deals with other schools, including Illinois and Kentucky.
  • Storr's NIL partnership with Mass St. Collective involves promoting products on social media and participating in events.
After reading that bit of information, you need to read about how Mass St. Collective is already ceasing operations, because schools are able to pay students directly. That means that the situation with Miami actually came about after the change in how the program works meaning that Miami itself was more than likely actively recruiting Lucas. Since the new NIL has schools paying directly, signing an agreement with them on NIL is now a contractual agreement with the school itself.


You'll also notice in the statement relating to Storr, the school itself set the limit at $750k while Storr wanted $1 million. The difference between Storr and Lucas is that Storr left Wisconsin and put feelers out for the 2nd year in a row to get the best deal he could, and it ended up Kansas.

The way NIL is structured now, I'd venture a guess that the newest NIL agreements tendered by the schools is going to be considered a contractual agreement, and the length will be determined at the time of signing.

It takes a lawyer or someone who is talking to insiders to fully understand where this is going. Like I said, I trust my sources.
 

Voyageur

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Thanks V. Yeah anytime $$$ are involved, all kinds of creative solutions are found.

As far as contracts, I thought players signed letters of intent, but not binding contracts. A legal contract requires both sides to put up "consideration" - in a services deal, that would require someone to perform an agreed upon service for a fee. Both are bound.

That doesn't seen to be happening here. If there isn't consideration from both parties, the contract can't be enforced.

But even if a sponsorship is offered, with a commitment to attend the school and play football, that should be binding. Been a long time since I studied business law and I'm no lawyer though.....

Regardless, it's a hot mess as you describe.
Read my response to Poker. It will explain most of what's happening on the NIL front. In all honesty, the question that will exist is whether Miami will have enough schools willing to go along with them and how many will oppose them by siding with Wisconsin, feeling they have a right to protect the integrity of agreements between the schools and the athletes.

After that, the courts get involved. It may well reach that point yet.
 
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Pokerbrat2000

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The AJ Storr situation is sort of "comical". He's playing horrible at Kansas and the fans are noticing it. Have to wonder how he would be playing at Wisconsin right now, might have been a good thing he left. He's a million dollars richer, but he sure isn't helping his future value.

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Voyageur

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The AJ Storr situation is sort of "comical". He's playing horrible at Kansas and the fans are noticing it. Have to wonder how he would be playing at Wisconsin right now, might have been a good thing he left. He's a million dollars richer, but he sure isn't helping his future value.

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I don't miss Storr or Hepburn to be honest. I like the Badgers players deciding they'd take turns being top dog in games, depending on what defenses failed to do against them. It's exciting watching them play and it's Brad Penny who brought Euro-ball to the team that's made the difference.

Now that Gard has decided that their new offense can include Crowl and Winter, they're an 80+ per game team that can beat anyone if they're on. I think this team is getting better every day, and when they hit the tourney, they could be tough for anyone to take out.
 
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Pokerbrat2000

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I never was a Chuckie fan. Seemed like he was like Khris Middleton for me. Whenever I decided to actually watch a game, he sucked.
 
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Heyjoe4

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I don't miss Storr or Hepburn to be honest. I like the Badgers players deciding they'd take turns being top dog in games, depending on what defenses failed to do against them. It's exciting watching them play and it's Brad Penny who brought Euro-ball to the team that's made the difference.

Now that Gard has decided that their new offense can include Crowl and Winter, they're an 80+ per game team that can beat anyone if they're on. I think this team is getting better every day, and when they hit the tourney, they could be tough for anyone to take out.
I'm a Marquette guy. I do like WI and the only time I won't cheer for them is the annual intrastate game with MU. I was living in CA when they lost the national title game to Duke. That was a great team and that loss really hurt. Still does.

Seems WI plays team ball really well every year. They seldom have a guy who stands out at the national level, and that's probably a good thing. The only hero is the team.
 
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Pokerbrat2000

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So the NFL has had the policy of not allowing a player to declare themselves for the draft until they are 3 years out of High School. With the way the NCAA has shifted to NIL and the TP, basically giving players financial and job freedom, will that effect the NFL's "ability" to keep blocking guys like Ohio States Freshman WR Jeremiah Smith from entering the NFL? By todays NFL standards, Smith won't be eligible until the 2027 draft. If he was eligible for the 2025 draft, I wouldn't doubt he would go top 5.
 

Pkrjones

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These are college kids.
Biggest worry I had as a senior in college was how to stretch my $200 to get to Florida for spring break. Succeeded!! 9 days, transportation, food (a little), drink (A LOT!), & sleeping around the hotel pool. ;)
 

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9 days on $200? Very impressive! That's the kinda stuff you can pull off in college.
Not impressive if it was 1955. ;) hey you know?... if this kid tanks and doesn't make BIG bucks in the NFL... think his Dad will regret NOT kicking the kid in the rear end for pi**ing that kind of money away? More than likely the vehicles were leased (rented), but still ... he's probably still getting a free ride at Miami too.... sigh ... wish I could throw a football now.
 

weeds

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Biggest worry I had as a senior in college was how to stretch my $200 to get to Florida for spring break. Succeeded!! 9 days, transportation, food (a little), drink (A LOT!), & sleeping around the hotel pool. ;)
I managed a bar so I drank free and my rent was one night of work ... and I was paid under the table so.... I admire you... of course I largely quit drinking at 31 when my son was born but I'm not sure my liver is completely unwrinkled 35 years later. :roflmao:
 

Pkrjones

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Not impressive if it was 1955. ;) hey you know?
1986, does that count? After a LONG week of being stupid the closest my return bus could get me was Galena IL (25 miles south of my Platteville destination)... so I tried hitch hiking. Nobody stopped, so I walked 1/2 way before a room mate drove down to get me.
 

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Not impressive if it was 1955. ;) hey you know?... if this kid tanks and doesn't make BIG bucks in the NFL... think his Dad will regret NOT kicking the kid in the rear end for pi**ing that kind of money away? More than likely the vehicles were leased (rented), but still ... he's probably still getting a free ride at Miami too.... sigh ... wish I could throw a football now.
1955, I was one year old and hadn't started following finance and economics yet - but I caught up later big time.
 

Heyjoe4

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I managed a bar so I drank free and my rent was one night of work ... and I was paid under the table so.... I admire you... of course I largely quit drinking at 31 when my son was born but I'm not sure my liver is completely unwrinkled 35 years later. :roflmao:
The liver is an amazing organ for its self-renewing properties. But here in WI, livers just cannot avoid the horrific onslaught of brandy (and beer of course) - not to mention what it does to our brains. I'm a good example of a bad example, in this regard.
 

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1955, I was one year old and hadn't started following finance and economics yet - but I caught up later big time.
I was still 3 years in the making. I must have been a big job. My kid is tired of my constant reminders of financial responsibility.
 

Heyjoe4

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I was still 3 years in the making. I must have been a big job. My kid is tired of my constant reminders of financial responsibility.
Being born in the 50s, and growing up in the 60s was phenomenal.

But I was a sloooow starter. Quit college after one year, worked a noon to 8pm shift in a parts warehouse downtown, and was out drinking every night. Came to my senses thankfully and finished college and got an MBA. But it was dicey for a while.

But teaching fiscal responsibility to a kid? That's tough, maybe impossible if they are not even a bit receptive. And the lessons are learned, for the most part, way too late in life.
 

Heyjoe4

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Teaching fiscal responsibility to anyone is difficult at best.
Amen to that.

Investing can be deceptively simple, but it has to start early - ideally late 20s to early 30s. Are advisors necessary? For some people most certainly, but not all. And now there are "robo-advisors" that can manage money very easily based on an individual's risk profile, income, expenses, all that stuff. And they are cheap, around 0.1% of assets managed in a lot of cases.

It doesn't take a high-paying job either to retire at 65 with 3 or 4 mil in retirement accounts. Most people don't believe me. All it takes is discipline - and compounding!
 
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Pokerbrat2000

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Teaching fiscal responsibility to anyone is difficult at best.

It starts with cutting up all of your credit cards! Now if you are someone that uses credit cards "wisely", then no need. However, those who use credit cards to pile up more debt, pay a ton of interest and fees, then grab your scissors and get busy!

I cringe anytime I hear/read something like "Well, I just had to have it (unessential item), but couldn't afford it, so I just put it on my CC".


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Voyageur

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It starts with cutting up all of your credit cards! Now if you are someone that uses credit cards "wisely", then no need. However, those who use credit cards to pile up more debt, pay a ton of interest and fees, then grab your scissors and get busy!

I cringe anytime I hear/read something like "Well, I just had to have it (unessential item), but couldn't afford it, so I just put it on my CC".


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I bought a new car on a credit card believe it or not. It was approved. I did it so I could get the cash discounts from the manufacturer and dealer, and then went to my bank and got a loan to cover my credit card. I ended up saving over $5,000 at the dealership and another 4% in my loan at the bank compared to normal lines of credit for vehicles. I just used the collateral on my home to make it happen and it took one day to pay off the credit card and I got another 2% back from them as well. In the end, including through the entire process of paying off the note, I saved over $9,000 from what I could figure out.
 

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