Page 6 - NovemberDecember24 Report

compliance with state and NCAA regu-
lations. Among other things, the Order
prohibits compensation contingent on
athletic performance or participation,
requires disclosure of NIL agreements,
and mandates that such agreements do
not conflict with existing institutional
sponsorships. Additionally, the Order
prohibits educational institu-
tions from directly compensating
student-athletes for their NIL,
ensuring that all compensation
comes from third-party entities.
The Order also encourages insti-
tutions to provide educational
workshops on financial literacy,
contract negotiation, and intel-
lectual property rights to help
student-athletes.
At the institutional level, NIL rules
and policies are customized to fit the
unique environment and resources of each
institution and its athletic department.
Consequently, failing to recognize and
appreciate these variations can increase
the risk of violating those rules and
potentially the law. This issue is particu-
larly acute when service providers, such
as lawyers, represent student-athletes,
brands, or institutions across multiple
jurisdictions. Each institution’s specific
requirements and compliance mecha-
nisms must be thoroughly understood and
adhered to in order to mitigate legal risks
and ensure that all parties are operating
With new opportunities and challenges
emerging daily, it is no surprise that legal
professionals are increasingly being called
upon to provide guidance to stakeholders
navigating this developing landscape.
within the bounds of both institutional
policies and applicable laws. Accordingly,
it is imperative for legal professionals to
stay informed about the nuances of NIL
regulations at each institution and to
provide tailored advice that reflects these
differences.
The contractual structures of NIL
deals between student-athletes and third
Highest Paid Collegiate Athletes
in 2024
1 Shedeur Sanders
VALUATION: $5.1 million
SPORT: Football
2 Livvy Dunne
VALUATION: $4 million
SPORT: Gymnastics
3 Travis Hunter
VALUATION: $3.1 million
SPORT: Football
4 Arch Manning
VALUATION: $3.1 million
SPORT: Football
5 Quinn Ewers
VALUATION: $2.2 million
SPORT: Football
6 Jalen Milroe
VALUATION: $2.2 million
SPORT: Football
7 Jaxson Dart
VALUATION: $2.1 million
SPORT: Football
8 Cam Ward
VALUATION: $1.9 million
SPORT: Football
9 Carson Beck
VALUATION: $1.9 million
SPORT: Football
10 Nico Iamaleava
VALUATION: $1.9 million
SPORT: Football
Source: Sports Grid https://www.sportsgrid.com/ncaab/article/
the-highest-paid-collegiate-athletes-in-2024-nil-rankings
parties are as varied as the rules and laws
governing them. The absence of a stan-
dard form of engagement adds another
layer of legal complexity, as terms and
conditions must comply with a myriad of
interwoven rules, policies, and laws. Over
the past three years, there have been NIL
deals that range from simple agreements
in exchange for merchandise to
comprehensive contracts valued at
hundreds of thousands of dollars.
As with any relationship resulting
in legal obligations, factors such
as power disparities, access to
legal counsel, and experience,
significantly impact the outcomes
of the deal. Understandably, as
these deals grow larger and more
complex, the need for assistance
from legal counsel becomes increasingly
critical.
In September 2023, Gervon Dexter
initiated a lawsuit against an invest-
ment capital company with which he had
entered an NIL deal during his tenure
as a student-athlete at the University
of Florida. Under the terms of the deal,
Dexter committed to paying 15% of his
pre-tax NFL earnings for the next 25
years in exchange for a one-time payment
of $436,485. Although Dexter ultimately
chose to voluntarily dismiss the case in
favor of alternative dispute resolution,
the terms of the agreement were revealed
in the complaint, prompting widespread
criticism. Many, including members of the
Florida Legislature, deemed the terms of
the deal to be violative.
In May 2024, Jaden Rashada filed a
lawsuit alleging breach of contract and
misrepresentation by the University of
Florida’s NIL collective, Gator Collec-
tive. Rashada claims the collective failed
to honor a multimillion-dollar NIL deal
promised during his recruitment, causing
him financial and reputational harm. The
lawsuit also suggests that Rashada was
misled about the terms and enforceability
of the agreement, which influenced his
decision to commit to the university. The
allegations in Rashada’s complaint illus-
trate yet another instance of potential
violations of NCAA rules, institutional
policies, and state law. Despite the case
being in its early stages, it already under-
scores the critical need for transparent
6 THE REPORT | November/December 2024 | CincyBar.org