RPJ’s Daniel Ain Featured in Associated Press Article on NIL Buyouts in College Football
RPJ’s Daniel Ain was recently quoted in the Associated Press in an article examining the high-profile transfers of brothers Nico and Madden Iamaleava and the broader implications for Name, Image, and Likeness (NIL) buyouts in college football.
Contracts between student-athletes and collectives – booster groups that support a specific university’s teams and athletes through NIL deals – often contain buyout provisions requiring athletes to repay a portion of their NIL compensation if they transfer schools before the agreement ends. These provisions are intended to discourage athletes from transferring in pursuit of more lucrative NIL opportunities.
As the NCAA moves toward finalizing a historic $2.8 billion antitrust settlement (House v. NCAA, Hubbard v. NCAA, and Carter v. NCAA), which would allow NCAA member schools to each directly share up to $20.5 million in revenue annually with student-athletes, many programs are proactively crafting NIL contracts that include similar buyout provisions. While collectives and institutions argue that these measures are necessary to protect their investments, critics contend the clauses are both punitive and legally questionable. Mr. Ain furthermore notes that even if buyouts are legally permissible, the optics and potential fallout of enforcing a buyout (e.g., on a student-athlete electing to transfer schools) may be problematic. “Suing 19-year-old kids isn’t a great look,” he remarked.
Whether these buyout tactics will stabilize roster movement – or simply invite new legal challenges – remains to be seen.
Read the full article here.
