What Is an Nil Agreement

By analyzing what the top 100 professional athletes in the world do with their endorsement portfolios (almost always made up of multiple brands), we found an average value of around $0.80 per Instagram follower. When applied to Instagram followers for college athletes in the 2019-2020 school year, annual revenue estimates would be $700,000 for Joe Burrow of LSU, $440,000 for Tua Tagovailoa of Alabama, $390,000 for Jalen Hurts of Oklahoma, and $5,000 to $30,000 for less popular athletes. Until now, publicly announced NIL agreements with swimmers have mainly included combination agreements with companies such as Speedo and TYR. Regan Smith, Carson Foster and David Curtiss are among those with costume contracts, while Alex Walsh recently announced a partnership with SwimOutlet. In addition, the student-athlete agent in California must have up-to-date disclosure information with the Department of Industrial Relations, as required by law. In addition, the student-athlete and the agent must inform the athletic director of the relevant university within 72 hours of signing the agency contract – or before the next sporting event to which the student-athlete is eligible (whichever comes first) – that the student-athlete has entered into such an agency contract. The same disclosure obligation arises each time a student-athlete enters into a new NIL agreement. Although schools don`t pay anything to their athletes – they will be third – they oversee their athletes` NIL contracts. Schools could also oppose transactions that conflict with existing agreements, i.e. an athlete who supports a different clothing brand than the one who pays the school to wear his brand.

In most cases, athletes are not allowed to display their ratings or logos while earning money with their own celebrity. Schools also can`t negotiate deals for their athletes, but many have made arrangements with brand brokers to educate their athletes. As for boosters, they cannot use NIL offers as recruitment incentives or to pay an athlete directly based on their performance. In other words, two incidents must occur in each transaction: (1) the AS must provide the endorser with a deliverable (Instagram post) and (2) the AS must receive a benefit from the endorser (money or equipment). As a general rule, courts do not assess the value of what is provided or received – the consideration simply has to be exchanged. The chic PCs are part of what the yellow vest players received in exchange for agreeing to promote TiVo on social media this month. They also received a $404 prepaid debit card (Atlanta`s area code is 404) and the company`s 4k streaming device. As part of the partnership, supported by Georgia Tech`s Athletic Department, TiVo provided the school with an upgrade to its AV equipment at some of the team`s facilities. The total value is more than $100,000, according to TiVo`s chief revenue officer Matt Milne, who said 90 of the team`s players have signed a contract for confirmation. Do you think schools will hire someone to look at such offers for students? I think there will be a separation. This must be due to the fact that schools will not serve as athlete advocates. I heard John Calipari talk at the Clubhouse about encouraging student-athletes to find representation and advice in these transactions.

A joint effort should be made to ensure compliance and ensure that students do not go beyond what they should accept as young people. But I also think schools will advise their students to make sure you have someone you trust to help you negotiate the legality of these NIL marketing agreements. It should be noted that Olympic athletes – given their amateur status – offer a similar benchmark, as the USOC awards $38,000 for each gold medal, $22,000 for silver, and $15,000 for bronze, which is within the range of what the average student-athlete would receive under the methodology described above. That being said, 24-year-old Olympic skier Mikaela Shiffrin earns more than $3 million thanks to the support of Red Bull, Oakley and Longines, while 22-year-old swimmer Katie Ledecky has signed a $7 million contract with TYR Sport. While it is unlikely that a student and an athlete will collect such high numbers, NIL will create a much larger pool of potential Olympians to support brands interested in reaching their target customer. Clear intellectual property rights By simply being in a photo, SAs do not automatically own all the necessary intellectual property rights (“IP”) in the photo or what is represented. SAs and businesses must obtain consent to the use of their institution`s trademarks and other trademarks in all commercialized materials. The third party that originally created a medium must also agree to its use in an approval. It is important to clarify which party is responsible for obtaining this intellectual property authorization and what happens if the other party is prosecuted for contributing to the infringement. I wrote about this when NIL was warming up this “social media appeal,” which includes taboo qualities, as we learn in Facebook audiences, which will motivate this compared to traditional and other “TV ads.” .