Penn Wants to form NIL Collective

This certainly is interesting, and would represent a stark difference of opinion from Robin Harris’ stated Ivy policy regarding NILs and player compensation.

Drop the bag!!

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I’m not sure how well sourced the article is but it does raise an issue: it seems to indicate that League approval would be required in order for Penn to have an NIL collective. Is that right? I thought the collectives are supposed to be independent of the school and, in any case, it would seem to raise antitrust issues to allow a league or conference to veto or regulate the formation.

The Ivy League and Robin Harris have nothing to do with forming an NIL. Athletic Directors and coaches also have no say in the matter. If someone or a group of people wants to start one, they can. “Ivy League approval” is a joke.

It certainly would raise antitrust issues. But I would be shocked if Penn would challenge a group decision.

You are right but the Power Conference schools promote them and cooperate with them to offer athletes compensation packages. It’s more a bogus technicality than the real world. The collectives work closely with coaching staffs to make offers to players. If the Ivies don’t change the policy that they have to be wholly independent, then they are close to useless.

You should read this article to see just how the Power Conference schools are setting up the NIL money to constitute direct employment contracts in all but name. NIL contracts have employment and pay-for-play all over them, experts say - ESPN

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Technically, a coach can’t even comment on the NIL that supports his program. I know that’s not reality but that’s the rule. So a coach can’t say to a kid that a NIL will pay him. Again, I know that’s not reality. That’s why the women’s coach at U of Miami got in trouble…making promises that the NIL will pay. Again, there’s nothing stopping anyone from creating a public NIL and doling out money. That’s exactly what James and Yale looked into. Having a well-known NIL fund is better than a donor quietly paying a kid behind the scenes. If it’s well-known, it’s a big recruiting benefit regardless of the size of the fund.

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All the interesting details aside, I do think Penn is generating good momentum here. Recruits, kids in the portal and their parents will certainly get the sense that a proper Penn NIL is being discussed and will figure out how to pay kids.

The collective is already “active.” Anyone who thinks to the contrary is ignoring the last 10 days. Who did the kid from Norway thank after he signed? The Ivy has no control over this. None. Nor does Penn. Alston case and state statute do fully. You think that Power was free. Come on. He was coveted by others. Also, the DP article was off on some salient levels.

I think the issue is how open Penn will be about it, not whether it exists.

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The next “logical” step from the Ivies would be a league-wide collective with set amounts for all players in the different sports and an agreement not to count it against financial aid. Outside NIL will be permitted to avoid antitrust issues, but coaches and athletic departments would not be allowed to coordinate with them.

I’m not saying this makes sense, just that it fits the history and trajectory of the league’s behavior.

The Ivy League, like all other D1 leagues, has nothing to do with NIL collectives. The Penn Basketball NIL is just a few guys raising cash and giving it to players. Fran McCaffery also, by rule, has nothing to do with it either. In reality, we all know he directs the money, but technically he and Penn have nothing to do with it either.

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I’m not following how this would be any less an antitrust violation than an agreement on financial aid formulas, which has already been the subject of antitrust litigation and settlements. It’s sort of like walking around with a sign that says “Sue me, you’ll win.”

Not collusion if they create a new joint league entity and don’t block outside NIL. Like the MLS single-entity structure that allows them to avoid antitrust lawsuits.

I haven’t checked recent case developments but my gut reaction is this would be closer to a trade association analogy than a single entity. In a single entity model all teams are owned by the same parent and I believe they draw from the same shared capital pool. I acknowledge no expertise on MLS operations. Obviously the “ownership” and management of IL teams are not under the same control and they don’t share financial resources.

Nobody really wants to fund an NIL for their team in the first place. See James’ earlier comments about Yale. No chance there’s some sort of joint NIL fund.

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So where can I donate?

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Venmo to Sam Brown.

There are very successful alums who might make a multi year nil
committment to the sports they care about and probably played at school
So getting pockets of $ for those sports is feasible, you can only have so many new athletics facilities and endowed coaching positions
In the ivies its much broader than basketball