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Old 06-22-2021, 10:37 AM
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Originally Posted by Chris R View Post
I have not followed closely, but Ive digested the possible scenarios. I can see both sides of the equation. My question is if the players will control NIL, will they be treated like all other "workers" that control their NIL as well? If they are no longer considered a student and treated more like an employee, wont the rules change quite a bit as to how you can treat them? With employers you get a lot more leeway in some areas and less in others.

This is probably still a ways down the line but consider this scenario.

Recruit A is a top level prospect and is being recruited by Duke. Duke is a Nike school. Nike calls up Duke and says, "listen you need to get this kid. If you sign him we can guarantee him $500,000 a year in endorsements. Make sure you tell him that in your recruiting sales pitch. If this kid is as good as we think he is, he will make Duke and Nike a fortune and we'll make him rich too."

Duke tells Recruit A, "Listen we are real tight with Nike....you sign with Duke and we can all but guarantee you'll make $500,000 a year. You can buy that house for your mom. Send your little brother to music school. Buy yourself a car and a Rolex. Nobody else can come close to this deal."

Recruit A decides to sign with Duke. About halfway through the year the coach detects an attitude with the player. He's playing well but coach has his reasons to sit him. Nike calls up the Duke coaching staff and says, "hey...our star endorsement is not on the court. You are costing us a fortune. Either he gets on the court and plays a 35 minutes in the next game or this is the last NIL endorsement we'll ever throw one of your recruits -- we'll send all our business to Chapel Hill and see if you can compete against our $500,000 offers with nothing but the ivy on your buildings. He's no good to us sitting on the pine."

Coach plays him the next game. But all of a sudden the kid starts playing terrible. The funk doesn't stop and its mid-season. Coach tells the kid, "I keep putting you on the court so you don't get the rug pulled from Nike and your mom's house doesn't get taken away, but unless you give me 20 and 10 next game, I'm firing you from the team."

Is the kid going to be legally considered an employee of Nike? Or of Duke? Or Both? And if so, do the rules of employment apply like they do for you and I where you can get fired for any reason ("lack of performance" being the most common)? Where does the line in the sand get drawn and how does the NCAA prevent the moral hazard of cash and endorsements from influencing not just recruiting but the actual operation of a basketball program? How do they remove the pressure upon the coach to play his "expensive" guys or else get an earful after every game from the Nikes and Gatorades of the world?

At least in the NBA everybody is an employee. You have contracts but you can get traded or let go at the drop of a hat -- coach no longer likes you, poor performance, the coach traded for someone better. There's no ambiguity. You are getting paid by the front office and your endorsement deals to put the round thing in the hoop. When you stop doing that, you're financial livelihood and job prospects are no longer guaranteed. You might be weedwhacking apartment complexes before you know it.

I think there needs to be strong language to prevent this potentially positive step forward from losing sensibility and turning CBB into nothing but a glorified NBA D-League masquerading as an educational opportunity.

Im not exactly sure what the right answers are and where middle ground makes sense. But I see this revelation driving an even bigger wedge between the haves- and have-nots in CBB. Imagine how much Dana Altman is going to be able to promise every Oregon recruit moving forward...he could all but guarantee a house for mom for every kid that signs. Just use Phil Knight/Nike as the pass-through to wash the money under "NIL". What's the Oregon St coach gonna be able to offer to counter that? A $750 spokesperson deal for Chop Suey Paradise in downtown Corvallis? Not as much as Oregon if Phil has any say in it.

Chris, the situation you describe is covered by most conflict of interest policies at nearly every company. For the reason you describe. This is of course not a "normal" situation but I expect every college will institute a COI policy. You work for Duke. You cannot collect $ from any other source that would jeopardize the performance or loyalty to Duke as long as you work here.

Example: you work for PNC Bank. You can't also work for XYZ Leasing Corp., and funnel some of your business to XYZ and some of it to PNC. As an employee of PNC, you have to work for the sole benefit of PNC. You could, however, do work on the side for your events planning business that doesn't compete with PNC.
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Mad Props to Gazoo For This Totally Excellent Post:
Hyde Park Flyer (06-22-2021)
 
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