Goooooood morning SportsBallers.

Thanks to everyone who filled out the SB Improvement survey, it helps to get that feedback and if you still feel inclined, find it here.

Now all that housekeeping is out of the way, here’s what we have in store for today:

💰 🧑‍🎓 📥 A deep dive into NIL and college athlete payment
🍺 🥶 ⭐️ Hypothermic beer chugging near Taylor Swift
💼 🌅 📝 You’re hired!

LEARNING MODULE 💡 

NIL Sponsorship 💸

In one of our most requested explanations, we’re exploring the world of NCAA athlete payment and a word you’ve likely heard, NIL. And what better timing as we’re in the middle of tax season to chat tax havens ⬇️.

Setting the stage

The NCAA generates $1 billion in revenue per year, with over $940 million of it coming from media rights and airing college sports games 📺.

Prior to 2021, college athletes, who are of course the revenue generators, were prohibited from receiving any financial benefits from this pool of cash 🚫. This was due to a rule forbidding them from profiting off their "Name, Image, and Likeness" (NIL). Any self-promotion an athlete did that brought in money was illegal. Influencing, affiliate marketing, selling merchandise, all those would get athletes in big trouble.

Imagine working at a company that made over a billion dollars a year and they only employed unpaid interns; that was the reality of the NCAA.

In 2021, an interim law was passed that ended this prohibition and allowed for a new wave of benefits for these athletes.

How does it work?

The NCAA still won’t pay players directly for their performance because they are considered “amateurs” and not employees.

How do they make their NIL money then?

Some of the most popular get money the old-fashioned way, influencing on IG/TikTok and raking in the sponsorships. These are your Livvy Dunnes 🤸, Cavinder Twins 👯, Bronnie James’ 🏀, and others with huge media followings.

However, other athletes benefit from what are known as "NIL collectives."

These collectives are "charities" affiliated with each school, managed by wealthy alumni with the primary goal of advancing the school's athletic programs. As charities, all donations to these collectives are tax-deductible, allowing them to amass large funds to distribute to players on the school's teams and to attract top talent for recruitment 📝.

Does this sound like the teams with the most money would have a huge advantage? You bet it does. Here’s a quick dramatization of the process through the lens of a rich old man in the oil business in Texas.

Collective Statistics

There are 253 NIL collectives across the country with undisclosed amounts of donations. These are the schools that have the most collectives associated with them:

These collectives are mandated to disclose their "purpose" regarding the sports they support. Typically, their charter will specify a primary focus, such as "basketball."

As for guessing which sports have the most associations with collectives, the data may not be surprising.

Of the 253 collectives in the country, the following list details the count of sports mentioned in each of their charters:

53 (21%) made mention of women’s sports of any kind.

It’s difficult to determine the exact amount of capital each group invests annually, as these groups are secretive. Nevertheless, it is undeniable that these funds significantly influence recruiting and transfers.

Change on the horizon

When the NIL law passed in 2021, it opened the floodgates for backdoor deals and sponsorships that we see today. Groups moving in the shadows have prominent impacts on the level of play.

It could end soon though.

Court cases are starting this year between the NCAA and players that are expected to result in players gaining “employment status” from the NCAA 👷.

If this happens, it will give players the ability to unionize the same way professional athletes do and demand a share of the $1 billion in revenue from the sports they play. With that, the relationship with collectives will surely change and we’ll see a new era of college sports - again.

THIS PAST WEEK ⏮

Mom, tell him to stop 🏈

Fancy new job alert 🚨 

Stranger Things, Squid Game, Wrestlemania? 💪

ATHLETE OF THE WEEK 🏆

Joel Embiid and Karl Anthony Towns 🏀

We have a double header as two players had historic scoring nights on Monday. First Joell Embiid of the Sixers scored 70 points, the 12th most ever in an NBA game.

An hour later, Karl-Anthony Towns of the Timberwolves checked in with 62 points of his own, the 37th most in a single game.

Sure, players score 60 points semi-regularly, there have been 12 in the last 3 years, but for it to happen on the same day is an anomaly. The last time was back in 1978, the same year the MRI was invented!

THIS NEXT WEEK ⏭

Championship Weekend 🏈

Don’t be fooled, this doesn’t mean the Super Bowl, it means the conference championships. The best two teams in the AFC and the best two teams in the NFC facing off. The winners will play in the Super Bowl in 2 weeks from now.

Kansas City Chiefs vs. Baltimore Ravens - Sunday at Noon PST
We’ll see if Patrick Mahomes, Travis Kelce, and Taylor Swift can bring the Chiefs to another Super Bowl against Lamar Jackson, Kodak Black, and Stavvy of the Ravens.

San Francisco 49ers vs. Detroit Lions - Sunday at 3:30 PM PST
It’s the Lions first championship game in 32 years against Christian McCaffrey and the 49ers.

Australien Open 🎾

The Aussie Open finals will be this weekend. On Saturday, the Women’s Singles finals, and on Sunday, the Men’s Singles finals.

Tonight, starting at 7:30, the Men’s semifinals will be taking place to see who will pave their way to the championship this weekend.

NHL 🏒 

The Edmonton Oilers are the hottest team on the planet right now, winning 13 straight games. If you’re curious about seeing the best team and best player - Connor McDavid - on earth, tune into one of their games this weekend.

Tonight 6PM PST - Oilers vs. Blackhawks
Saturday 1PM PST - Oilers vs. Predators
Tuesday 7PM PST - Oilers vs. Golden Knights. This game will be exciting as it’s the first big test for the Oilers in this stretch as they take on the defending champions.

Thank you all for reading, have a fantastic weekend!

— Riley and Claire

Keywords: NIL, college athlete payment, NCAA revenue, Name Image Likeness, NCAA rules, NCAA athlete sponsorship, college sports economics, NIL collectives, college athlete benefits, college sports recruitment, college sports funding, NCAA athlete unions, Jason Kelce, Travis Kelce, Jim Harbaugh, WWE Netflix deal, Joel Embiid, Karl-Anthony Towns, NBA scoring records, Championship Weekend, AFC Championship, NFC Championship, Australian Open, NHL, Edmonton Oilers, Connor McDavid