AROUND NIL THIS WEEK | OCT 7, 2024

Approved settlement clears path for $2.8 billion payout and athlete revenue sharing

Oct 8, 2024—The $2.8 billion House v. NCAA settlement resolving antitrust lawsuits has received preliminary court approval, marking a historic shift in college sports. Over 10 years, eligible Division I athletes who competed from 2016 onwards will share the payout, provided they waive further claims against the NCAA. Starting in 2025, schools can directly pay athletes up to $20 million annually under a new revenue-sharing model. Despite concerns about allocation favoring football and men’s basketball players, the settlement represents a revolutionary step towards fairer compensation in college athletics. MORE

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Ex-NBA star's new NIL company sparks concern among experts

Oct 8, 2024—Nilly, co-founded by former NBA champion Kendrick Perkins, offers college athletes upfront payments ranging from $25,000 to hundreds of thousands in exchange for up to 50% of their NIL earnings for seven years. Critics liken the contracts to high-interest loans, with one $50,000 deal potentially costing athletes $75,000 in fees. Consumer finance experts warn of predatory practices and regulatory risks, as courts could reclassify the agreements as loans subject to lending laws. While Nilly claims to reduce financial stress and assumes risk, skeptics highlight potential exploitation of young athletes and the steep costs of accessing immediate cash. MORE

Former Colorado football coach sought millions from Saudis to pad NIL fund

Oct 10, 2024—Trevor Reilly, a former Colorado football staffer, took a self-funded trip to Saudi Arabia. His goal? To pitch PIF leaders for $20 million in NIL funding to back Deion Sanders’ team. Despite no deals materializing, his efforts underscore the $8 million gap in Colorado’s NIL budget compared to schools like Ohio State spending $20 million annually. Frustrated with limited resources, Reilly resigned in August and now lives in Hawaii—far from the chaotic NIL battleground, while Colorado’s collective continues to face scrutiny over its ability to capitalize on Coach Prime’s $280 million brand impact. MORE