NIL: A Trend of Exploitation

For decades, a fierce debate between the NCAA and its athletes raged. While the NCAA and its member schools generated millions of dollars from the faces of their athletes, these athletes went home from every game empty-handed. Despite being recognized for their on-field accomplishments, they were never rewarded. Although collegiate athletes protested relentlessly for the right to profit from their name, image, and likeness, their requests were denied time and time again. When Name, Image, and Likeness (NIL) legislation was passed in 2021, athletes were finally given the right to monetize their personal brand. However, despite the potential to generate equity and create lucrative opportunities, athletes are still vulnerable to exploitation from the NCAA, businesses, boosters, and scammers. A solution may lie within Congress’ power.

Recent Controversies & Potential Solutions

Without clear federal guidelines, the potential for exploitation remains high. After numerous instances of

athletes being failed by current NIL policy, NCAA president Charlie Baker expressed his desire for a

solution: “We’re continuing to advocate for Congress to create national NIL guidelines that will protect student

athletes from exploitation, including the use of standard contracts.”

The following examples highlight the unpredictability of current NIL policy and how it could have been

prevented with federal guidelines.

● Savannah Schoenherr - University of Florida (2023): Savannah Schoenherr is offered $1,500 to

model for a New York clothing brand. After arrangements are made, Schoenherr receives a

$3,000 check and tries to deposit it. Before she gets around to paying the $1,500 for a “facility

fee,” the check bounces and Schoenerr realizes she was almost scammed.

Exploitation often occurs without consumer protection measures. Congress could mandate that the NCAA provides resources, such as legal counsel or some form of standardized review process for athletes negotiating NIL contracts, which would ensure that athletes are signing legitimate NIL deals. While some universities have internal policies or resources that provide advisors for these deals, it varies significantly depending on the school.

● Jaden Rashada - University of Georgia Football (2024): Jaden Rashada files lawsuit against

multiple members of the Florida athletic department. During the recruitment process, a Florida

booster group offers a $13.85 million NIL package to secure Rashada. Rashada signs his letter of

intent, but shortly before payment is due, the booster group rescinds the contract.

● Matthew Sluka - University of Nevada, Las Vegas (2024): Matthew Sluka announces his decision

to sit out the remainder of the season after the team failed to fulfill NIL promises.

“I committed to UNLV based on certain representations that were made to me, which

were not upheld after I enrolled. Despite discussions, it became clear that these

commitments would not be fulfilled in the future.”

A template contract created by the NCAA includes provisions that Charlie Baker believes should be

included in a fair contract. The template contains required elements, such as a description of work or

services that the athlete should perform for compensation, the amount of compensation, and the contract

duration.

This template could be used as a basis for standardized contracts, which Congress could mandate.

Athletes are susceptible to exploitation because of the current ambiguity of NIL laws, but by requiring

contracts to clearly define the terms of the agreement, Congress would prevent unfulfilled NIL promises.

Once the athlete signs the contract and commits to a school, they should be unable to rescind it.

Overall, the implementation of federal NIL legislation is likely to prevent much of the exploitation that

still takes place in collegiate athletics.

Danica Zelvin is a high school senior interested in Name, Image, and Likeness contracts. She can be found on LinkedIn here.

Sources:

https://www.espn.com/college-football/story/_/id/41480474/ncaa-charlie-baker-urges-congress-act-amid-nil-dysfunction

https://www.espn.com/college-sports/story/_/id/40206364/ncaa-power-conferences-agree-allowschools-pay-players

https://news.bloomberglaw.com/antitrust/college-athletes-lured-by-nil-deals-exploited-by-fine-print?utm_source=Email_Share