With BLVD closed down, USC's NIL collective market in flux

Since his move to USC, Caleb Williams has become the most marketable athlete in college football. As a star quarterback on a highly ranked team in the nation’s second-largest TV market, he is the face of the sport entering the 2023 season.

Before July 2021, he could have been the same caliber athlete. But he would not be building a brand off the field as a name, image and likeness savant. For all the on-field success – including winning the Heisman in December – he has built his own distinct brand. He has partnerships with Beats by Dre, AT&T and, most recently, Alo Yoga.

He has done all of it his way. In Year 1 with Williams and Lincoln Riley, the Trojans made their first appearance in the Pac-12 title game since 2017. They’re poised to be back in the top 10 again this fall.

Riley appears to have the necessary pieces in place to keep the USC football renaissance going when Williams leaves for the NFL. Winning in college football these days takes a mixture of things, mostly having strong strategies in high school recruiting and the transfer portal.

All of that ties into a strong NIL collective. While there is not a universally accepted definition of “NIL collective”, most generate financial opportunities for athletes while pooling together funds from boosters and fans.

The USC NIL collective market is currently in flux. Multiple sources have confirmed to On3 that BLVD, which launched in June through the media agency Stay Doubted, has shut down day-to-day operations. The TOMMY Group launched earlier this week, with the backing of former USC football players Alex Holmes and Keyshawn Johnson.

So what will NIL look like for USC football in the coming months? What fell apart? And is NIL still a hurdle for Lincoln Riley?

USC disconnect with BLVD led to downfall

When USC announced its relationship with Stay Doubted in June, the move was heralded as the next iteration of the NIL collective. In a crowded, undeveloped marketplace, the Trojans looked to have figured it out after slow-playing the first year of NIL.

The media house would provide athletes with a third-party option in searching for NIL opportunities through BLVD LLC. At least seven Stay Doubted employees would be dedicated to activities surrounding BLVD. USC appeared to have been able to carefully craft a sustainable model.

But a bit more than eight months after the initial announcement was posted on USC athletics’ website, the web page is dead. BLVD, which defined itself as a “collective+”, has closed down day-to-day operations. The organization turned heads, signing Fletcher Jones Motorcars as the official luxury car dealer of the collective and providing more than 100 football players with a Ridel electric scooter. The organization also had plans to secure official partnerships for the Trojans student-athletes, with a goal of raising $75 million in five years.

Two sources with direct knowledge of the situation indicated to On3 the root cause of BLVD’s fall was a disconnect between USC and leaders of Stay Doubted.

When the collective initially hit the market, it came after months of backroom planning. Michael Calvin Jones, Stay Doubted’s founder and leader of BLVD, worked closely with Brandon Sosna, the right-hand man to athletic director Mike Bohn, to create the framework. They consulted with numerous NIL experts across the country, too. But days before the announcement, Sosna was linked to a job in the Detroit Lions’ front office. He eventually left for Lions at the end of June. A key figure was gone after helping hammer out a plan.

With Sosna out of the picture, USC’s athletic department advocate for its relationship with BLVD was not at the table. Sources said Riley fully backed the intiative but Bohn was not comfortable pointing key donors toward the collective. BLVD still dished out roughly $2.5 million to USC athletes, a source told On3.

A request for comment from USC on its relationship with Jones and BLVD was not returned.

USC collective market faces key stretch

When Student Body Right announced its plans in August, the collective received serious backlash from the USC administration and BLVD. The thought was a new collective hitting the market could draw donor’s dollars away from BLVD, and Student Body Right never really got off the ground.

“USC shares the desire to promote and protect the BLVD program in support of our more than 600 student-athletes,” a high-ranking USC official told On3 at the time. “To that end, USC has no relationship history with Mr. [Dale] Rech, nor do they have record of any ticket purchases or athletics donations. We would be very wary of anyone launching a NIL initiative who has no known connection to the athletics program and no proven track record of supporting our student-athletes.”

Now, a new collective has announced its formation. This time, BLVD is not an active player. Along with Holmes and Johnson, The TOMMY Group has support from John Terzian, the co-founder of the h.wood Group, and Mike Hahn, the co-founder and partner of Ten Oaks Group. The h-wood Group owns restaurants, while Ten Oaks is a banking firm.

Along with including an endorsement from Caleb Williams in its news release, the organization plans to work closely with USC athletes. The collective said it is already working with 80 USC athletes and will facilitate endorsement deals and public appearances, along with providing marketing and PR tools for Trojans.

Speaking to a handful of media outlets, Holmes has been emphatic that the group is in lockstep with the USC compliance department.

“That’s the paramount thing for us, operating completely within the lines, no gray area,” Holmes told the the LA Times on Thursday. “We won’t talk to anyone until they’re signed at USC.”

Another USC-focused NIL collective will be launching in roughly a month, too. With backing from “longstanding” USC donors, the organization plans to build off of BLVD’s framework. Jones’ business, J1S Holdings, will help out from an operations standpoint. A board of directors made up of a group of of USC boosters will oversee the operation.

Spencer Harris, who formerly worked at BLVD, will serve as the collective’s executive director.

“A group of longstanding, substantial donors and members of various USC boards are in the midst of completing a non-profit, alumni-led NIL collective,” Harris said in a written statement. “The group intends to benefit from some of the successful operational aspects of BLVD but are building a separate, board-led entity with strategic alliances within the USC community.

“Understanding the needs in today’s competitive marketplace, we look forward to working with USC student-athletes, the university, and other groups involved with USC student-athlete NIL upon announcement in the near future.”