NIL database, uniform contracts, registry among concepts explored in NCAA meetings

A database of NIL activity, uniform contracts for deals and a registry for those participating in the space – including for agents and collectives – were among the primary concepts explored during two days of NCAA NIL meetings that concluded Wednesday in Indianapolis.

The meetings, which included a wide swath of industry leaders, NCAA President Charlie Baker and several Division I athletes from high-profile sports, concluded without any votes taken on those specific concepts or consensus points established, a source with direct knowledge of the meetings told On3.

The next step: the NCAA’s NIL working group will convene in a virtual meeting Monday to consider input from these meetings and potentially develop a plan to be shared with the Division I Board of Directors on Tuesday. The concepts discussed, first reported by Yahoo Sports, all represent items previously identified by Baker as potential consumer protections for student-athletes, all of which the association is looking to address to evolve its interim policy.

Calling the meetings “productive,” Lynda Tealer, chair of the Division I Council, told On3 on Wednesday that the perspectives of the student-athletes were particularly helpful in conceptualizing the path forward. Stakeholders stressed to On3 that the meetings are not an attempt by the NCAA to walk the landscape back to a pre-NIL era or restrict NIL opportunities.

“There is no effort to reduce access to NIL opportunities for students,” said Tealer, who is also the executive associate athletics director for administration at Florida. “The goal is to help students better understand what is really happening as it relates to NIL and to better understand who they are working with. Bringing some transparency into the process was discussed, as was the notion that even with the assistance of Congress, there is room for the NCAA to operate to add some stability and clarity to the NIL environment.”

Gene Smith, Ohio State‘s athletic director, said in a statement: “It is clear stakeholders across the country, including student-athletes, understand the challenges and are committed to improving the experience for student-athletes. That’s our top priority. It may take a bit longer to stabilize the recruiting environment but we are committed to taking a shot at that as well.”

Isaac Vance, a graduate assistant at Gardner-Webb and a former football player at Kent State, said in a statement released by the NCAA: “Each student-athlete present provided valuable input and it was clear by the questions asked by the working group that they care about the student-athlete perspective and take our voice seriously throughout the entire decision-making process. This was not a check-the-box exercise.”

AAC commissioner: NCAA should ‘focus on the big stuff’

Industry leaders have plenty of ideas on what should be included in an updated NCAA NIL policy. Mike Aresco, the American Athletic Conference commissioner, told On3 on Tuesday his wish list would include items that create more disclosure and transparency.

“The collectives are here – fine. You can’t necessarily limit what someone is going to pay as long as there is a quid-pro-quo,” Aresco said. “I wouldn’t worry about that. Let’s root out the basic abuses. This thing will eventually settle down, in all likelihood. I don’t think you have to micromanage it. You need certain levels of disclosure. Focus on the big stuff that is obvious – and that is it.”

A potential registry, in which individuals would need so-called authorization to be able to conduct business with student-athletes, would be a notable step toward enhancing protections and transparency for athletes, sources said.

On another front, Aresco cautioned that uniform NIL contracts could be fraught with challenges because of the number of different types of NIL deals, including signing autographs, sponsoring a car dealership, making TV appearances and much more.

“There is every kind of NIL known to man,” Aresco said. “It’s hard to have a uniform contract for NIL. I’d have to be shown how that could really work …

“If you have a level of transparency and there is a quid-pro-quo, and – it’s a free country – if a car dealership wants to pay $200,000 or $300,000, Ok, you may say, ‘That’s really just paying a player. What’s that player’s real worth?’ The other thing you could do is have companies that analyze fair market value argue what’s fair market value. But, boy, you get into really a thicket of problems there. Because who is to determine what fair market value is for you or for me? The nuances there are not easy to deal with.”

How we got here with NIL

The NIL working group had been tasked with drafting an updated proposal, essentially a Plan B, in case the NCAA’s pursuit of a long-sought federal reform bill falls short. The Division I Council received an update on the subcommittee’s work during meetings attended by Baker in Indianapolis on June 27 and 28. The purpose of this week’s meetings was to solicit feedback from a broader audience of industry experts.

Drafting an updated NIL policy does not reflect an NCAA strategy pivot, a second source with direct knowledge of the meetings told On3. Rather, the association will operate on two parallel tracks, pursuing a new policy as it continues to aggressively lobby federal lawmakers for legislation. 

This week’s meetings are occurring as movement is afoot on several important fronts in the two-year-old NIL space. 

New school-friendly state NIL laws in Texas, Oklahoma, Missouri, Montana, Arkansas and New York have, football coaches say, created competitive advantages for in-state schools while clashing with existing NCAA guidelines related to donor-driven collectives. The laws also prohibit the NCAA from policing some NIL activity.

A flurry of disparate federal bill proposals has been unveiled in recent weeks. Baker said a registry of NIL deals, a certification process for agents and a uniform NIL standard are among the association’s priorities. The NCAA wants a federal NIL bill that preempts the patchwork of state NIL laws. And Baker, the former Massachusetts governor, said last month he ideally would like to see a federal bill passed by the end of the calendar year.

Examining the NCAA’s aggressive push for federal NIL laws

But with the election cycle around the corner, stakeholders know that the clock is ticking. A growing number of prominent college sports leaders – including Big 12 Conference Commissioner Brett Yormark, Aresco, Oklahoma Athletic Director Joe Castiglione and North Carolina AD Bubba Cunningham – told On3 that the time is now to craft a Plan B. 

Castiglione said: “The responsibility is on all of us to figure this out.”

Aresco: “We should be the ones to put forth a plan – period.”

The increasing calls for a Plan B are a realization, as summer soon turns to fall, that a federal bill, as Yormark said, is “not a slam dunk.”