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Athletes can be sued for breach of contract if he/she transfers after taking NIL money

Posted on 4/17/24 at 12:05 pm
Posted by SwampyWaters
Member since Apr 2023
1374 posts
Posted on 4/17/24 at 12:05 pm
Just read an article on On3 and it's clear players can be sued by companies/collectives, if they don't fulfill their obligations outlined in the agreement. The reality of the situation, however, is most companies/collectives won't sue and will just take the loss because it's not good for business.

The article pointed out that taking athletes to court could severely damage the chances of that particular school landing future top players when that company/collective has taken previous players to court. Coaches also know that many of the top players are good friends and communicate with each other a lot.

It's clear college football is a complete mess and it's only going to get worse, but the NCAA has no one to blame, but itself. For years, the NCAA was well aware that all the big colleges were paying players under the table, and instead of dealing with it and handing out heavy penalties/sanctions, the NCAA chose to look the other way and here we are now. I equate this to baseball burying its head in the sand when they were well aware all the stars were juicing, but everybody was making big money, so let's just act like we're dumb.

I know some of you will say the NCAA had no choice because the courts ruled against them, and I get that. However, had the NCAA dealt with the problem head on 30 years, there's a good chance we would be going down a different path today. The reality is college football today has absolutely nothing to do with college and everything to do with making money and winning at any cost. IMO, I really don't know why the NCAA is still existing because the NCAA now answers to the schools, not the other way around!


Posted by kywildcatfanone
Wildcat Country!
Member since Oct 2012
119365 posts
Posted on 4/17/24 at 12:12 pm to
If the contract they sign stipulates a time frame or a specific school, then sure, they should have to forfeit funds.
Posted by BobLeeDagger
In Your Head
Member since May 2016
6923 posts
Posted on 4/17/24 at 12:15 pm to
I had a feeling this was always around the corner.

Athletes have been clamoring for years about NIL. But it always seems to be left unsaid that players are using the universities NIL to advance their own personal brands. It’s a two way street and should be treated as such.
This post was edited on 4/17/24 at 12:16 pm
Posted by nicholastiger
Member since Jan 2004
42871 posts
Posted on 4/17/24 at 12:16 pm to
the problem with NCAA is they selectively enforced their rules
giving the death penalty to SMU when the entire Big 8 was cheating was the biggest fraud in NCAA history and if not for statute of limitations SMU probably should have sued the NCAA for the damage inflicted upon it's program
Posted by PeleofAnalytics
Member since Jun 2021
2779 posts
Posted on 4/17/24 at 12:24 pm to
Using escrow accounts for a portion of their contract would make it a bit less likely a kid leaves. Offer the kid 5-10% more at the end of the day if they allow the collective to deposit 50% of their earnings in an interest bearing escrow account that is forfeited if they breach the contract. Once the season is over, the athlete can withdraw it all. Hard to pass up 5-10% more and the athlete can probably go to a bank and borrow against it. Then the bank is on the hook if they don't get paid back.

The collectives need to be a little more inventive if they are not going to sack up and sue these people.
Posted by CGSC Lobotomy
Member since Sep 2011
80384 posts
Posted on 4/17/24 at 12:28 pm to
quote:

giving the death penalty to SMU when the entire Big 8 was cheating


I'm not sure if you intended to say the SWC (which SMU was a member of) instead of the Big 8.

SMU went way above and beyond what other schools in the SWC were doing though in that, not only were they a repeat offender, but the scheme went all the way up to the Governor's Office.

It didn't help that the sips had people like Dale Hansen, Charles Wright, and Dan Beebe embedded in key positions.
Posted by Back to Scat
Dry Prong
Member since Feb 2024
330 posts
Posted on 4/17/24 at 12:35 pm to
I doub't they are getting paid up front to begin with. When it all became legal, I imagin it didn't take business long to limit their risk. I would think there are morality clauses as well, just like any celebrity endorsment. Also, Some of this is calculated out in cash, but may be a car or truck lease. I'm sure they get the car back.
Posted by Havoc
Member since Nov 2015
28502 posts
Posted on 4/17/24 at 12:45 pm to
quote:

However, had the NCAA dealt with the problem head on 30 years, there's a good chance we would be going down a different path today.

Agree. And who knows, maybe even agreeing to pay a stipend for players equating to peanuts in the big picture (e.g., $5k a semester or something) could have calmed things enough to avoid the present situation?
Posted by AwgustaDawg
CSRA
Member since Jan 2023
7194 posts
Posted on 4/17/24 at 1:10 pm to
The problem will be that some NIL collectives won't have such language in their contracts thus nullifying the impact across the board. You can put about anything you want to in the language of a contract....and both parties can pretty much be held to whatever they agree to....but say Oklahoma has no such language but LSU does...who you gonna sign with?
Posted by TouchdownTony
Central Alabama
Member since Apr 2016
9702 posts
Posted on 4/17/24 at 2:29 pm to
quote:

For years, the NCAA was well aware that all the big colleges were paying players under the table, and instead of dealing with it and handing out heavy penalties/sanctions, the NCAA chose to look the other way


Hell naw they didn't. We Bama fans have always said a one year death penalty under Yeagers regime would have been better than what we got. We lost our ability to compete from 2003-07 after the 02 sanctions were handed down. Hell, SMU and Miami have never gotten their programs back. The opposite happened from my eyes. The NCAA went beyond rational penalties. Now, if you want to say starting in 2010 when they let Auburn walk up until the present day, yea, I agree.
Posted by RT1941
Member since May 2007
30256 posts
Posted on 4/17/24 at 2:37 pm to
quote:

I doub't they are getting paid up front to begin with. When it all became legal, I imagin it didn't take business long to limit their risk. I would think there are morality clauses as well, just like any celebrity endorsment. Also, Some of this is calculated out in cash, but may be a car or truck lease. I'm sure they get the car back.

Has anyone actually, physically seen a fully executed NIL contract on any given student-athlete?


Posted by SoFla Tideroller
South Florida
Member since Apr 2010
30202 posts
Posted on 4/17/24 at 2:47 pm to
quote:

The article pointed out that taking athletes to court could severely damage the chances of that particular school landing future top players when that company/collective has taken previous players to court.


This is such gutless bullshite. You think a player that's offered a bunch of money by, for instance, Raising Cane's to play at LSU is going to refuse because Cane's sued a player three years ago for not fulfilling his end of the agreement? horseshite. Most players will think, "That guy three years ago was an idiot. Where do I sign?"
Posted by Smokeyone
Maryville Tn
Member since Jul 2016
16049 posts
Posted on 4/17/24 at 2:50 pm to
quote:

the contract they sign stipulates a time frame or a specific school


That’s an inducement and against the rules
Posted by RT1941
Member since May 2007
30256 posts
Posted on 4/17/24 at 3:00 pm to
quote:

The collectives need to be a little more inventive if they are not going to sack up and sue these people.
Not every athlete goes through a collective though. Student-athletes can market themselves, cut deals and contract outside of an NIL collective any time they choose.
Posted by TroyTider
Florida Panhandle
Member since Oct 2009
3771 posts
Posted on 4/17/24 at 3:32 pm to
quote:

Most players will think, "That guy three years ago was an idiot. Where do I sign?"


Do some people really think the kids and their posse's are going to sit around weighing their options with money squarely in their face? Nah.

This is where the schools should come to some accord or face the consequences of donors possibly withholding money to the collectives.
I'd be super-pissed if my collective contribution was totally wasted on a kid who tried to take the money and run and skip out of the agreement.

IDK how to do that in the legal climate, but something needs to be done to mitigate some of the fraud and abuse of the new system. It's plenty out of hand already without the athletes getting any more bright ideas about double dipping.
Posted by PeleofAnalytics
Member since Jun 2021
2779 posts
Posted on 4/17/24 at 3:37 pm to
quote:

Not every athlete goes through a collective though. Student-athletes can market themselves, cut deals and contract outside of an NIL collective any time they choose.

Collectives are not the only groups capable of using escrow accounts or getting inventive. Jim Bob's lawn care of Morgantown, West Virginia can write the same type of contract.

Require the athlete to mow a 10ft portion in front of the business every 2nd Thursday afternoon during football season and pay them for the commercial. You get paid 1/20th of the contract for each appearance or something. Makes it pretty hard for the athlete to up and leave to Los Angeles and keep getting paid.
This post was edited on 4/17/24 at 3:40 pm
Posted by lowspark12
nashville, tn
Member since Aug 2009
22370 posts
Posted on 4/17/24 at 3:40 pm to
Won’t happen… no body wants to be known as the school that sued a kid.
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