Big 12 coaches say uniformity of state NIL laws 'needs to happen fast'

ARLINGTON, Texas – The elephant in the room – or more precisely AT&T Stadium – during the Big 12 Conference media days was that the league is now a tale of two NIL worlds.

This isn’t unique to the Big 12. But it offers a window into the current confounding landscape in which some conference schools compete in states with new school-friendly NIL laws, while others do not. Seven Big 12 schools compete in states with recently updated NIL laws that might conflict with NCAA policy.

Some league coaches call it a distinct competitive advantage. 

“Absolutely. It is,” Cincinnati coach Scott Satterfield told On3. “Texas is one of those states where they have an advantage. A lot of the schools we are playing in the Big 12 are in the state. It’s going to be something we have to look at and hopefully get more uniformity. It needs to happen fast.”

Another league newcomer, UCF Coach Gus Malzahn, told On3 it’s imperative that uniformity exists among state laws.

“We need some kind of salary cap or some kind of guidelines,” Malzahn said. “It’s all over the place. I think every coach in America would second that.”

Iowa State coach Matt Campbell told On3, “You’d like just uniformity a little bit probably from a holistic standpoint. It’s such a tough question and such a unique time. When NIL and one-time transfer hit at the same time, it changed the landscape of college football. I think uniformity would be good for both of those areas.”

Federal NIL bill is ‘not a slam dunk’

At the moment, new state NIL laws – passed in Texas, Oklahoma, Missouri, Arkansas and New York – might be conflicting with NCAA guidelines. The laws enable schools to establish a closer relationship between their fundraising foundations and their respective collectives. It also provides protection from the NCAA enforcement arm from policing some NIL activity.

When asked if state NIL laws need more uniformity, Oklahoma Athletic Director Joe Castiglione told On3 the “patchwork of state laws is problematic, for sure.”

“But on the other hand it’s a reaction to the lack of any plan by anyone,” Castiglione said. “The fact that this whole world continues to evolve in spontaneous ways, and due in large part to the lack of a regulatory approach, people are just responding to what they think they need to do to be successful in the current world of disruption. I’m not saying we all like it, but it’s a very, very challenging element.”

NCAA stakeholders, led by new President Charlie Baker, have been aggressively lobbying Congress for a federal NIL bill to create a uniform standard that preempts state law. Until and unless that occurs – sources characterized it as a “Hail Mary” attempt for a lifeline – the NCAA’s recent memo stipulates that member schools need to follow the association’s guidelines if they clash with state law. Legal experts, however, believe state law would trump NCAA policy if a legal clash ensues.

West Virginia coach Neal Brown told On3 that federal legislation is important so everyone plays under the same rules. He added that “I do have some faith. I think the bill that Senator [Joe] Manchin and Senator [Tommy] Tuberville are pushing forward. I would like to see that have a chance to be put in front of Congress. There are some things, in terms of legislation, that would help if that would get passed.”

Brett Yormark, the Big 12 commissioner, told On3 on Wednesday his guidance to his league’s 14 schools is clear: “Adhere to NCAA policy.” He remains hopeful that Congress will pass a federal NIL bill, though acknowledges it’s wise for stakeholders to explore a Plan B because federal legislation is “not a slam dunk.”

New state NIL law is there ‘to protect us’

With Oklahoma recently passing a new state NIL law, On3 asked Castiglione if OU follows state law or NCAA policy.

“Both,” Castiglione said. “State laws are not meant to imply that we aren’t trying to follow the rules of our association. But they are there to protect us in the event that things happen that are out of our control. Keep in mind, we know NCAA bylaws that have existed over a period of time. There aren’t any for NIL. There hasn’t been.”

One of the schools at the center of the state law-NCAA battle is Texas Tech. 

The Matador Club, whose some 4,000 donors helped raise $8 million during the 2022-23 academic year, recently became a corporate sponsor and the official NIL Tech-focused collective. An important distinction: The fundraising arm and Matador Club remain “two separate entities.” The Tech model will not award collective donors with priority points, collective co-founder Cody Campbell said because they believe it may violate NCAA rules.

“The biggest thing for us is we want to make sure we are doing things the right way and following what the governing body – the NCAA – wants us to do,” Tech coach Joey McGuire said. “I think we have, man. The rules are almost changing. I can go on a rant. Whatever the people in power say, we make sure we follow those rules and make sure we are transparent.”

Various stakeholders across college athletics have applauded Tech’s model, saying it’s the future. Other collectives and some schools eye it with envy, eager for their state laws to change to enable them to create the same structure.

‘We’re still voluntarily part of the NCAA’

Asked if Oklahoma plans to implement a similar model – because state law allows – Castiglione referenced the recent Internal Revenue Service memo that raised questions about the future of specifically nonprofit collectives and the NCAA memo related to state laws. With both in mind, he said the university is “evaluating” the ramifications of altering its relationship with the school-affiliated collective. 

“Some are interpreting that the law is intended to violate NCAA rules,” Castiglione added. “It’s not. I can’t speak for every state. We’re still voluntarily part of the NCAA. We get that part. There are bylaws that guide what we can and can’t do, and there are ways for them to hold people accountable. 

“But the gray area, it’s not gray in the sense that you know the rule and know what someone is trying to do and you’re trying to play in the gray area. We haven’t received any rules from the NCAA other than to go back to the existing rules that may apply.”

Furthermore, Castiglione said at some point collectives will likely be operated more in-house, more under the umbrella of school fundraising arms. That’s the endpoint he envisions, ultimately. 

Players deserve a piece of that pie

Satterfield, the Cincinnati coach, looked around the AT&T Stadium field – where teams were setting up for media day – and said, “We’re here where all these states have different rules and regulations and schools are approaching it in a lot of different ways. It’s obviously not the same. If we want to get some more regularity, where it’s a level playing field, we certainly have got to get there. How we get there is the big question. Is it the NCAA? The politicians? Who is it and how are we going to get there?”

It is important to note that state NIL laws are not the only inherent difference that could create competitive advantages on certain campuses. That’s why the facility arms race has existed for years. It’s why some schools have larger, more zealous fan bases, better home-field advantages and coaches with more lucrative contracts.  

To that point, Malzahn said the most glaring NIL competitive advantage that has emerged benefits schools that have “the most money.”

“That’s the challenge,” he said. “We’re set up as good of a place as any in the country. But we’ve got to be competitive in the NIL world. If we do that, it’s going to be a lot of fun. Every school in America is challenged. But some of them have more money.”

Brown, the West Virginia coach, takes a more progressive stance and believes it’s time to usher in a fundamentally new era. He said he believes “players should be paid. They should be able to profit off their Name, Image and Likeness. They should get a piece of this enterprise, which is college football. Everyone else is benefitting, they deserve to benefit. I think there’s probably a better way to get money in their pockets than the system we currently have.”

Additionally, asked if he endorses a revenue-sharing model, Brown said: “College football, we missed the boat when the TV contracts started going up and up. What we should have done as an enterprise, the players, who are the product on the field, deserve a piece of that pie. Then you can create some equality through that.”