Days after the College Sports Commission publicly commented on the deluge of “manufactured” NIL deals slowing down processes at the oversight group, 18 Nebraska football players are pursuing arbitration for a “manufactured” NIL deal the CSC rejected, valued at more than $1 million.
According to WOWT, the Cornhuskers want to reverse the CSC’s decision. They believe they should be eligible to earn the income from Playfly Sports, Nebraska’s multimedia rights partner, without including specific information about who the paying entity is or what the student-athlete obligation will be — that goes against the CSC rules.
Related: CSC Reports Longer Review Times Due to Overwhelming Amount of ‘Manufactured’ NIL Deals
“The CSC rejected the Nebraska deals because they violated the policy against what is called ‘warehousing’ where an entity ... purchases an athlete’s NIL rights for future endorsement and commercial opportunities,” reported Pete Dellenger of Yahoo Sports.
For example, Playfly would be required to list specific deliverables, including autographs and television commercials, rather than simply keeping the student-athletes on retainer for any event or opportunity that may arise. The CSC requires specificity.
On the players’ side is Nebraska’s revised statute 48-3603, which states that athletes cannot be punished for intending to earn compensation through NIL or athletic reputation. They will be represented by Husch-Blackwell, and if successful, CBS Sports reported this could be “precedent-setting” for other states and universities considering similar action.
"In general, in arbitration, deals are consolidated because the issues are essentially the same," said Bryan Seeley CEO of the College Sports Commission. "And what that often looks like is they are different student-athletes, but it's the same or identical deal, or similar or identical deal, and they're all from the same school."
