The North Dallas Chamber of Commerce held its annual Sports Business Summit on Wednesday afternoon, where a panel of local sports industry leaders discussed some of the issues in collegiate and local sports.
The panel included University of North Texas Vice President and Director of Athletics Jared Mosley, Dallas Sports Commission Executive Director Monica Paul, MLBPA certified agent Billy Martin Jr., famed Dallas sportscaster Dale Hansen, and sports technology COO Jeremy Fair.
While several issues were discussed, one particular topic repeatedly emerged: the regulation of Name, Image, and Likeness (NIL) and how it has changed the sports landscape.
“Don Ohlmeyer once said, ‘Money is the answer to every question about sports,’ and I think, unfortunately, he’s right about that, ” Hansen began.
“We’re seeing that more and more as we go forward… I’m one of the few guys involved in sports in any fashion who doesn’t think we should be paying college athletes because I think a free education and on-site training is enough,” he added.
NIL has drastically changed the landscape of college sports since it was implemented in July 2021, as schools have started collectives, turned to wealthy donors, and faced “pay-for-play” allegations in their recruiting efforts.
“We probably have ourselves to blame in college athletics in that we were very strict about our amateurism, and the world continues to change around us,” Mosley explained. “Student-athletes were being penalized. You rewind 15 [or] 20 years; they could have had a business; they could have developed a brand that people wanted to compensate just like any other student on campus.”
“Yet, they were having to choose whether they were going to be an athlete or go and pursue this opportunity they had developed or grown.”
There is little universal regulation for how schools use NIL, and much of the current language is vague. The NCAA has attempted to clarify its policies numerous times, including a memo sent to schools earlier this week that urged institutions to follow NCAA guidelines over state laws (regarding NIL).
“The association has been clear and maintains that schools must adhere to NCAA legislation (or policy) when it conflicts with permissive state laws,” the NCAA’s most recent memo states, according to CBS Sports. “In other words, if a state law permits certain institutional action and NCAA legislation prohibits the same action, institutions must follow NCAA legislation.”
Thirty-two states, including Texas, have passed such laws since NIL began, and many have written them in ways that try to prevent the NCAA from interfering. However, the NCAA is asserting that membership is voluntary, so its schools must follow its rules to continue as members.
A significant issue in NIL is how universities have applied the practice, with many being accused of using it as a “pay-for-play” mechanism. Under NCAA rules, the system is meant to compensate student-athletes for using their likeness as intellectual property and advance their individual interests, not simply pay them for being student-athletes.
“We can’t sustain the model where donors are funding projects and other things and institutions along with [the] salaries for students method,” Mosley explained. “So, I think it will level off at some point.”
Until July 2021, student-athletes had to follow strict rules that prohibited any compensation for their unique roles on campus, which led to many lawsuits and attempts to unionize by student-athletes.
In 1987, SMU was hit the hardest for violating those practices as the NCAA shut down the school’s football program because it was making payments to student-athletes and their families to play at the school, a punishment from which the program still has not fully recovered 36 years later and has not been given to any other institution since.
While NIL does not allow for “pay-to-play” by the letter of the law, schools have found loopholes in the current policies.
“I would probably make a lot more money if I were just working NIL than actually trying to be a baseball agent,” Martin Jr. told the crowd. “I recently heard [of] a basketball player whose agent told the coach, ‘I’m not going to advise he leave for the draft,’ because he played $4 million playing for the university and wouldn’t make that money when he’s in the NBA.”
As the practice continues to evolve, questions like “Where does it stop?” and “Will other amateur athletes eventually be able to profit from NIL deals?” come to mind. Without further regulation and clarification, those questions remain difficult to answer.
Hansen pointed out that, currently, there is nothing stopping Little League athletes and parents from demanding NIL deals.
“When you think about it, the way NIL is operating and the arguments that led to it, why aren’t the 12-year-old kids who play in Williamsport being paid?” he remarked. “ESPN makes money, the restaurants in Williamsport make money, [and] the announcers get paid to broadcast the game.”
He also acknowledged that it is becoming increasingly likely that NIL practices will trickle down to the high school level, which was part of what enticed Southlake Carroll’s Quinn Ewers to forego his senior year and enroll at Ohio State.
“I think it’s only inevitable that kids in Allen and Southlake and some of the bigger high schools [get NIL deals],” Hansen told The Dallas Express after the panel. “They built a $60 million football stadium, and they pay the football coach more than they pay any teachers. Those kids are supposed to be out there playing for free in my world, but that world is dead, and I think it’s only inevitable.”
While there seems to be a universal call for more guidelines, or “guard rails,” as the panelists referred to them, regarding the use of name, image, and likeness, there continues to be debate over whether the federal government should intervene.
“I think once you allow the states go [regulate], I don’t know who else steps in and gets everybody on the same page,” Mosley said. “So I do think there is a push to get some federal mandates in place. I’m hopeful they’re reasonable about what they do.”
As schools, athletes, and others involved continue to adjust to the ambiguity of NIL, everyone has their own ideas for change. Yet, one thing is clear: Changes are needed if the NCAA really wants institutions to follow the true spirit of the policy.
“Whether it’s the state [or] the NCAA, something new is coming to the landscape of NIL,” Mosley remarked.
“So you just have to be flexible. You have to be ready to shift and pivot at the end of the day…As long as we can keep things moving forward without just completely losing control of the wheel, I’m hopeful we’ll find a solution.”