Andy Dalton to execute NIL deal with every TCU athlete with launch of myNILpay

Brent Chapman believes there is a way to simplify the NIL transaction.

While the top athletes in college sports work closely with agencies and marketing firms to broker endorsement deals, the majority who are allowed to profit from their name, image and likeness are forced to procure and broker agreements on a variety of platforms on their own time.

Cameo provides access to athletes and celebrities, with users paying for quick, individually-filmed messages. Opendorse is a popular NIL marketplace, allowing fans and companies to pay for autographs and promotions. Booster Athletes plays off a similar idea, charging users a monthly subscription in exchange for athletes’ behind-the-scenes content.

The CEO of myNILpay launched his company on Thursday, allowing fans to easily tip their favorite college player at any time. In return for the payment, the company will produce a digital collectible item featuring the athletes’ signature to send to the buyer.

“I was talking to some of these student-athletes, and I’m hearing their stories and these are quarterbacks. And I’m like, ‘Oh, man, this is not good. This is not what it should be. This is not helping student-athletes,'” Chapman told On3 in a phone interview this week. “It kind of struck me, and I kind of walked away from this thinking there had to be a better way.”

As a former chief information officer for two financial companies, Chapman has brought on former NFL head coach Marvin Lewis and women’s basketball star Nancy Lieberman to sit on myNILpay’s board.

The app does include a fee for myNILpay to deliver funds, with athletes receiving 90% of the transaction and the company retaining 4%. Businesses can also send sponsorship requests through the platform.

While myNILpay is introduced to the college athletics sphere, the company already has a major donor lined up. Former TCU star and Carolina Panthers quarterback Andy Dalton has committed to sending direct payments to more than 450 Horned Frog athletes – every active player. Along with his wife, Jordan, the Daltons will spend more than five figures on the activation.

Deals can be executed even if an athlete has not been onboarded. The company has a profile built for every athlete who has registered with the NCAA, according to Chapman. Fans and boosters can find an athlete in the myNILpay’s catalog and make a payment with a minimum of $20. If someone is sent a tip and has not claimed their profile, a message will be sent to their university email address. From there, athletes will deposit funds into a linked bank account.

The app could theoretically take out the middleman for boosters who wish to send a direct payment to their favorite college players in return for NIL activities.

“I think it is wonderful that college athletes can take advantage of their name, image and likeness to make some money,” Dalton said in a statement. “When I learned about the myNILpay app and saw how easy it was to support any college athlete, it gave me an avenue to show my appreciation for every current athlete at TCU. I hope fans across the nation take advantage of this great app and support collegiate athletes of their choice.”

Added Chapman: “Having somebody like Andy step up, and not just say, ‘Yeah, that’s awesome.’ But say, ‘Yeah, that’s awesome, and I’m going to use it to help let everyone know about it.’ It’s just immeasurable.

Does myNILpay violate NCAA rules?

Athletes who earn income from myNILpay will be taxable as a 1099-independent contractor. Chapman also said the company would assist in reporting transactions to institutions. Athletes will receive a MISC-1099 every January for their work in the completed tax year.

The NCAA prohibits NIL payments contingent on the enrollment of a particular school. Agreements without quid pro quo – compensation for work not performed – also violates the governing body’s policy.

Because any user of myNILpay receives the digital collectible for their payment, there is a deliverable in exchange for the agreed-upon compensation.

“I think it’s compliant with NCAA rules,” said sports attorney Mit Winter, who has worked through problems with the NCAA before regarding companies possibly violating the NIL policy. “The athlete is providing the use of his or her NIL in return for payment, so there’s a quid pro quo and it’s not payment for athletic performance. It’s also not an inducement.

“The NCAA guidance says payments from NIL deals must be based on the value the athlete brings to the deal, but that’s impossible to enforce. The value is whatever the buyer is willing to pay.”

Expansion of myNILpay

Chapman’s vision for myNILpay is not close to being a finished product. Obviously, the top football and basketball players stand to make the most, arguably the most visible figures in college athletics. But he hopes his product will be a source of revenue for Division II and III athletes, who could encourage family and friends to participate on the app. The platform will soon have an update providing access to career guidance, NIL education, wealth management and financial literacy resource.

How myNILpay is used could also evolve.

Currently on Apple‘s App Store and accessible through its website, Chapman said institutions have asked about putting QR codes on video boards. A simple few taps on a phone could have funds in an athlete’s account as they leave the field or court.

“I’ve had universities ask, ‘So can we take a QR code and put that on the scoreboard when they score a goal, they make a basket or get a block and could just hit it right in the arena and pay that kid?’ Yeah, exactly.

“What we’re selling to the fan is you can pay your favorite student-athlete. You can support your favorite student-athletes for a shot they made or because they went to your hometown high school or they play at the same school that you played at.”