NIL Question……..

[UTTUCK]

……how does NIL payments work?  Say you offer a kid $1M for a year.  Does he get it all upfront, half upfront and the other half at end of year, or in monthly or bi-weekly payments????

[901longhorn]

The student I know who receives NIL from another SEC school gets his monthly. 

[GoHorns1]

Monthly after they enroll 

[Jordan Scruggs]

Usually monthly but a few guys are now starting to get basically a signing bonus too. For example on a 200k contract, a player will get 80k upfront and 10k each month. He’ll get the 80k when he enrolls or resigns the next January etc. It’s usually a player by player basis though since all contracts/situations are different.

A fair amount of agents push for the signing bonuses so they can get their percentage upfront or 50% of their percentage upfront and the rest in 6 months. 

[Dawson Yarbrough]

What is the difference between NIL and Rev share?

[GoHorns1]

3 minutes ago, Dawson Yarbrough said:

What is the difference between NIL and Rev share?

I think Rev share is from the schools 

[Dawson Yarbrough]

27 minutes ago, GoHorns1 said:

I think Rev share is from the schools 

That’s what I thought. So they are signing rev share deals. I wonder if NIL is separate through 3rd party?

[GoHorns1]

7 minutes ago, Dawson Yarbrough said:

That’s what I thought. So they are signing rev share deals. I wonder if NIL is separate through 3rd party?

Not sure but I think yes

[TTown]

Pretty sure it can be a combination of both Rev Share and 3rd party NIL. May be some guys getting only RS , others both. Texas only has 13.5 million in Rev Share for football. So easy to see 3rd party does a lot of business if our payroll is in the 30-40 million range. And those 3rd party deals as of now still have to clear the Clearinghouse etc. 

And yeah have read monthly pay. And as stated above some signing bonuses etc. Be fascinating one day to see how it is really done, how each school figures out their path. Texas One Fund seems very well ran , and dependable as well as compliant.

[Jordan Scruggs]

Rev share is directly from the school. Each school can use around 20.5M for the entire athletic department. Since football is the main money maker at every school, football will usually get 12-15M of that depending on what school they're at. A school like Duke or UNC will have a larger percentage of their 20.5M rev share dedicated to basketball more than Texas would. Each school splits it up a diff way. Rev share money is also effectively guaranteed since athletics departments (of big boy programs) will easily clear 20.5M in revenue each year. 

NIL are 3rd party deals that have to be approved after submitting through the CSC (college sports commission) clearinghouse. These can be deals like an instagram promotional post, a paid appearance, or an ad campaign for whatever company, etc. It just has to be a legitimate, verified business and a deal that get's approved by the clearinghouse for it to be legal. 

Each player's pay is split up a diff way. Guys who only make 50k a year are usually rev share only. If it's 600k for a year they can go 400k rev share and 200k from NIL. Most agents and players push for as much rev share money as possible because when these contracts are being ironed out, a school can say 'hey man we'll give you half of your 500k payment through NIL deals with businesses" and then months past and that school hasn't set up any NIL deals, they're still trying to get them through the clearinghouse, or that business no longer wants to pay the athlete. Unless you're a legit top of the line player, it can be really hard to have actual 100% guaranteed NIL deals months in advance or at least on time with what contracts say. There's also plenty of folks who stopped using the clearinghouse and are now just pushing NIL deals through since there's not much the NCAA can actually do to enforce anything. 

It's all really a case by case basis because each school's front office and GM does things differently and on the flip side each agent and each player will have different unique requests. 

[TTown]

Texas Rev Share comes from 18 million not 20.5.  The other 2.5 was used for scholarships they added. Breakdown is:

Football- 13.5 MBB 2.7 WBB 900K 

All other Sports 900K

So again easy to figure out we do a lot of 3rd Party , Texas One Fund etc. Really is amazing the how we do it to be competitive in so many sports.