Interesting article all around as it breaks down what is really happening at A&M, UF, OU and others....as schools have to deal with major boosters also wanting to donate $$ directly to players vs donating "everything" to the school.
Marc D talked about the below scenario that recently happened at A&M where the player thought he was getting an appearance fee from a business...only to realize after that he basically "sold" his rights to the A&M Collective, who then received full payment for the player's appearance (player just continued his regularly payment schedule as he didn't get "extra" for the appearance).
From article below:
Understanding all aspects of these arrangements remains a work in progress as everyone learns about a system that didn’t exist a year ago. For instance, one current Texas A&M Football player who has a deal with The Fund that includes all of his NIL rights recently made an appearance and then asked the business owner when he would be paid. After a few confused phone calls, an organizer of The Fund explained to the player that he would be paid by the LLC on an agreed-upon schedule and that the money for each individual appearance would go directly to the LLC. A current player also had a large marketing agency representing him for NIL deals before deciding to sign a deal with The Fund for a marketing guarantee. Instead of elbowing out the large agency, organizers of The Fund decided to allow the player’s agent to continue representing him provided all revenue from any deals went through The Fund’s LLC — which would then pay the agent’s commission. Another reason for such deals? Most state laws forbid pay-for-play. Organizers of The Fund produce deals that will get approved by Texas A&M’s compliance department. This keeps players from striking individual deals that, for example, pay per touchdown or per tackle. Those wouldn’t be allowed under the law.
Marc D talked about the below scenario that recently happened at A&M where the player thought he was getting an appearance fee from a business...only to realize after that he basically "sold" his rights to the A&M Collective, who then received full payment for the player's appearance (player just continued his regularly payment schedule as he didn't get "extra" for the appearance).
From article below:
Understanding all aspects of these arrangements remains a work in progress as everyone learns about a system that didn’t exist a year ago. For instance, one current Texas A&M Football player who has a deal with The Fund that includes all of his NIL rights recently made an appearance and then asked the business owner when he would be paid. After a few confused phone calls, an organizer of The Fund explained to the player that he would be paid by the LLC on an agreed-upon schedule and that the money for each individual appearance would go directly to the LLC. A current player also had a large marketing agency representing him for NIL deals before deciding to sign a deal with The Fund for a marketing guarantee. Instead of elbowing out the large agency, organizers of The Fund decided to allow the player’s agent to continue representing him provided all revenue from any deals went through The Fund’s LLC — which would then pay the agent’s commission. Another reason for such deals? Most state laws forbid pay-for-play. Organizers of The Fund produce deals that will get approved by Texas A&M’s compliance department. This keeps players from striking individual deals that, for example, pay per touchdown or per tackle. Those wouldn’t be allowed under the law.
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