The NCAA rules regarding NIL have changed often in the last three years, and the latest change is a big one. Sulllivan writes about it in the email below:
“While our sights are set on nothing but finishing the season strong and making a postseason run, I am compelled to write with another timely NIL update and its impact on our basketball program,” Sullivan wrote. “Given the pace and impact of change, I have been writing every few months. To date, this is my most important update and I urge you to take a moment to read this information and find a way to support the NIL program.
“As I have shared before, in addition to our coaches, our basketball performance is largely dependent on the talents and efforts of highly skilled student-athletes. Therefore, our continued ability to compete effectively depends on our ability to recruit high caliber players and to retain our existing roster.
“Until last week, NCAA rules did not permit any third-party to be involved in the recruiting process. Boosters, collectives, corporations, fans and NIL agents could not communicate (e.g., call, text, direct message) with a recruit, their family, or others affiliated with a prospect or offer contractual inducements to sign with a specific school.
“On February 23, a federal court ruling fundamentally changed this rule. A federal judge entered a preliminary injunction in an antitrust case brought by the Tennessee and Virginia attorneys general regarding the NCAA’s name, image and likeness (“NIL”) rules. In short, the judge said that an “NIL-recruiting ban” that prevents recruits from negotiating during the recruiting process likely constitutes an “illegal agreement to restrain and suppress competition.” Therefore, he issued a preliminary injunction against the NCAA enforcing the rule. The judge ordered that, effective immediately, “the NCAA cannot prohibit any recruits or student-athletes from negotiating compensation for NIL with any third-party entity, including but not limited to boosters or a collective of boosters.”
“This is the most radical shift in NIL since its inception nearly 3 years ago.
“So what does this mean to the Dayton Flyers?
“Effective today, recruits (both high school and transfer) being recruited by Dayton will be allowed to negotiate with third parties, collectives (Dayton 6th), boosters, fans, and companies before they commit to the Flyers. During the recruiting process, recruits and their families will now negotiate, compare and contrast market values from various third-parties affiliated with schools they are considering. Further, they may sign contracts before committing to a school. Agreements must still include expected deliverables by a student-athlete in exchange for the agreed upon compensation.
“Institutions still may not pay students directly or indirectly. The University of Dayton may not use any institutional funds (from season tickets, donations, etc.) to compensate players for use of their name, image, and likeness. I think this rule will ultimately change, but for the current recruiting period, UD may not contribute financially. As a result, the NIL compensation students receive is entirely reliant on third parties like you, Dayton 6th, corporations, organizations, and individual contributors.
“We continue to focus on long-term, sustainable relationships, not fleeting transactions of talent acquisition fees. However, never before has supporting Dayton 6th and other NIL related organizations who support our student-athletes been more important to player attraction and retention.
“I am asking you to visit Dayton 6th website to learn all the various ways you can support this effort. Further, I ask you to support our corporate partners who have actively stepped up to partner with our players.
“NIL helped build our current roster, and will help build our next.
“The way the legal and regulatory dimensions in college sports interact over the next year will likely lead to radical and fundamental change, specifically around player compensation and benefits. We must be prepared to manage the relevant variables that will define the future of college basketball and the NCAA tournament. I will continue to communicate as frequently as required to grow our position in college basketball. I see no path forward without a responsible, but hyper aggressive approach to support our basketball rosters with third-party compensation until this regulatory environment is more settled.
“As always, we thank you for your loyal support of Dayton Athletics and know that you expect first-class, competitive programs that represent our University, our city, and our community in the best possible way. Together, that is what we expect to continue delivering.”
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