Hard times at John Ruiz' LifeWallet have changed NIL at Miami in 2023 but the Canes Connection Collective has been well-prepared and funded to take over
The University of Miami and one of its main entities engaged in NIL deals with Hurricane student-athletes were not blindsided by the financial and legal troubles that have hit John Ruiz’s LifeWallet and perhaps Ruiz personally, all outlined in a Sunday morning comprehensive Miami Herald article.
NIL contracts at Miami in recent months have been shifting from what almost entirely was the domain of LifeWallet a year ago to the Miami collective, Canes Connection.
Canes Connection now has 75 of the 85 current scholarship football players under contract and the entire Miami men’s basketball team except for Nigel Pack under contract as well. Pack’s high-profile $800,000 two-year NIL contract with LifeWallet remains in effect and sources have told CaneSport that LifeWallet has continued to fulfill all of its NIL deals with Pack and other Miami athletes.
LifeWallet had a deal with the Cavinder twins for women’s basketball, but they have moved on to a career with the WWE and other entities. Canes Connection has already begun planning for NIL contracts for Miami women’s basketball this year as well.
“Canes Connection is in a very strong financial position,” a source close to the situation told CaneSport.
Changes earlier this year to Florida laws have allowed the University to work more closely with Canes Connection. Several supporters of the University of Miami have anonymously stepped up to support the collective, maintaining Miami’s present and future strength in the NIL space.
Ruiz was a pacesetter in the NIL world, spending approximately $15 million in the past two years on NIL deals with Miami athletes. He did it in brash style, trumpeting his successes on social media and helping make LifeWallet a major name and player in the NIL world that was constantly talked about nationwide.
Ruiz called that his return on investment, but all that publicity did not help LifeWallet’s stock price as intended. LifeWallet stock was hovering around $10 when it went public last year. Friday it closed at 23 cents and the company is facing a delisting from the NASDAQ that will then make it much more difficult to trade shares. A $992 million revenue projection ended up at $23.4 million in reality.
But as all that pertains to Miami Athletics and its athletes, preparations began at least six months ago for the Canes Connection to become more actively engaged in NIL relationships with athletes.
LifeWallet may or may not soon be out of the NIL business after its existing contracts expire. But multiple sources have told CaneSport that Ruiz has honored every contract, intends to fulfill the remaining deals with athletes like Pack, and even has been a personal and significant supporter of Canes Connection through personal donations to the collective outside of LifeWallet and a massive amount of legal services.
The Herald article stated that Ruiz and LifeWallet are the target of investigations by the Security and Exchange Commission and the U.S. Attorney’s office for the Southern District of Florida. Multiple witnesses have also been interviewed about Ruiz and his company by the U.S. Attorney’s Office in Miami, according to the Herald. But Ruiz denies that, telling CaneSport that all the fuss is the byproduct of disgruntled former employees trying to disrupt his companies.
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“It is business as usual,” Ruiz told CaneSport Sunday. “I am not the target of a civil or criminal investigation.”
In a memo sent out to its supporters on Friday, Canes Connection confirmed the 100 contracts in effect with Miami athletes and said that dozens of local, regional, and national businesses and entities have seen their marketing and branding efforts enhanced through their student-athlete partnerships.
Canes Connection has some donors giving $10 a month and others contributing thousands, creating a massive multi-million dollar fund. Miami players under contract are paid bi-weekly.
“As Canes Connection has continued to grow, so has the number and diversity of our supporters and we thank all of those who have played a part in our early success,” the memo stated.
Miami football is in the midst of recruiting in the 2024 cycle and the Hurricanes have aggressively been recruiting many of the top players in the country. It is highly likely that once those prospects choose to become Hurricanes, future NIL deals will be made with Canes Connection, not LifeWallet.
The Herald story detailed Ruiz’ lavish lifestyle and spending, but that really doesn’t have anything to do with his NIL activities. LifeWallet falling short of its revenue goals simply forced Ruiz to be far less involved in the front-side of the NIL world and the Collective to take over. It’s that simple.
“This did not happen overnight,” a source told CaneSport. “The Collective has been fully prepared to become the primary party to NIL deals at Miami now and in the coming years.”