<a href="https://www.on3.com/nil/">NIL</a> <a href="https://www.on3.com/nil/collectives/">collectives</a> are not a monolith. The more than 200 that operate nationwide run the gamut in ambition, sophistication, resources, mission, community involvement, staffing, business savvy and – if the NCAA’s reform proposal is adopted – survival prospects.



On the heels of the NCAA’s attention-grabbing <a href="https://www.on3.com/os/news/ncaa-charlie-baker-proposes-creating-new-subdivision-trust-fund-nil-to-compensate-athletes/">proposal</a> – which would for the first time allow schools to enter into <a href="https://www.on3.com/nil/deals/">NIL deals</a> with athletes – one of the many questions stirring debate is, if the plan is adopted, what would be the fate of the current model of third-party collectives?



The answer? It likely depends on the specific collective, the individuals who operate them, and the goals of the athletic department. But make no mistake, the collective model would change dramatically. 



“It would definitely redefine collectives,” Walker Jones, executive director of the <a href="https://www.on3.com/teams/ole-miss-rebels/">Ole Miss</a>-focused <a href="https://www.on3.com/nil/collectives/the-grove-collective-17/">Grove Collective</a> and a leader in <a href="https://thecollectiveassociation.org/" target="_blank" rel="noreferrer noopener">The Collective Association</a> who has <a href="https://www.on3.com/nil/news/live-updates-news-analysis-senate-judiciary-committee-hearing-nil-charlie-baker-tony-petitti-jack-swarbrick/">testified</a> in front of Congress, told On3. 



In the proposal’s current form “I don’t think it makes collectives obsolete,” he said. “I think it maybe refocuses collectives on those revenue-generating sports to maintain some anonymity from <a href="https://www.on3.com/nil/news/would-ncaas-subdivision-trust-fund-nil-proposal-ensure-title-ix-compliance/">Title IX</a>. Maybe collectives only focus on football and maybe men’s or women’s basketball in some cases, or baseball. It would definitely change collectives’ missions and who they are contracting with.”



Because collectives operate as third-party entities, legal experts have told On3, many schools – whether intentionally or not – evade Title IX requirements as the collectives distribute the vast majority of their dollars to male athletes. In his Tuesday morning letter, NCAA President Charlie Baker specifically noted that the two biggest changes he is proposing would ensure <a href="https://www.on3.com/nil/news/would-ncaas-subdivision-trust-fund-nil-proposal-ensure-title-ix-compliance/">Title IX compliance</a> because they would formally occur under schools’ umbrellas:



First, the plan details, a college sports subdivision – comprised of institutions with the highest resources – should be required to annually invest at least $30,000 per athlete into an enhanced educational trust fund for at least half of the institution’s eligible student-athletes. 



Secondly, Baker asserts, rules should change for any Division I school, at their choice, to enter into name, image and likeness licensing opportunities with their student-athletes.



<h2 id="h-is-proposed-model-be-better-than-current-system">Is proposed model be better than current system?</h2>



Under this proposal, schools would be mindful of Title IX compliance when distributing dollars from the trust fund and entering into NIL deals with athletes. In theory, there could still be a role for some third-party collectives to then give players in revenue-generating sports their fair market value in NIL dollars.



“Just like the football coach is always going to make more than the softball coach, the starting quarterback is going to make more than your starting center fielder in softball, or your goalkeeper in soccer,” Jones said. “Those economic disparities already exist.”



Jones said a collective could continue to operate and perhaps exclusively distribute dollars to football and men’s basketball players, as appropriate. At the same time, within the framework of the trust fund model, the university would spend millions on non-revenue, Olympic sports athletes, he said, “which they don’t currently do.” 



In the NCAA’s proposal, if a university has some 400 athletes, it would need to pay at least 200 of them at least $30,000 annually. That’s $6 million per year – at a minimum. 



Jones’ question is how this proposed model is any better than the current system. The NCAA would be saddling universities with another $6 million that needs to be spent on athletes, including those from non-revenue generating sports.



<h2>Moving closer to in-house collectives?</h2>



Through interviews with a wide array of legal experts and collective operators, if the NCAA proposal is adopted in its current form – and that remains a large question – many believe some collectives will indeed be rendered obsolete, and that that outcome was part of the NCAA’s calculus with the proposal. 



Some collectives likely would fold into the athletic department’s NIL arm. Some may continue as third-party entities, but perhaps with different value propositions. And, in some cases, new third-party entities could blossom to also assist schools when NIL activity moves in-house.



Some collective operators are influential stakeholders highly valued by athletic department officials, but most are not. Some would move to assist in the athletic department’s NIL operation, sources said, but most may not. 



Corey Staniscia, co-founder and director of the <a href="https://www.on3.com/college/usf-bulls/">USF</a>-focused collective, <a href="https://www.on3.com/nil/collectives/fowler-ave-collective-109/">Fowler Ave Collective</a>, tweeted that if you’re a collective operator and concerned about the implications of the proposal “get your head out of the clouds. Too much money/power went to many collectives across the country who of course want to continue feeding the beast. I welcome the day when this can be done through the institution itself.”



Staniscia added that the NCAA should allow the institutions to contract with athletes even just for their rights of publicity to directly sell merchandise, co-branded billboards, and bobbleheads for fans. 



Ayden Syal, the CEO and co-founder of <a href="https://www.mogl.online/">MOGL</a> – a leading athlete marketplace and NIL operations software provider – said under this proposal, athletic departments will need a division responsible for distributing compensation amounts.



“It is unclear if that role would or could be assumed by collectives, but it’s important to remember that many collectives are managed by former members of athletic departments,” Syal told On3. “Because of this, collectives in theory could be brought in-house as the entity or department responsible for the management and distribution of the ‘trust funds’. Schools will likely need a robust software solution and management system to support this.”



One prominent collective operator told On3 that the proposal, if adopted, will just cause the collective to formally move in-house, a scenario many industry leaders have long endorsed because they believe it would address donor fatigue and inefficiencies, and ensure Title IX compliance. 



“We are already one small step from that [in-house model] anyway,” the collective operator said. “This wouldn’t change much.”



The collective source added that the proposal would adversely affect half of some power leagues and “completely destroy” schools that aren’t strong revenue generators. However, the source said it would help schools that have robust operating revenue but weaker donor support. 



“This thing would have to come with some kind of revenue-sharing agreement and salary cap to keep it from ruining the whole institution of college football,” the source said.



<h2>Is in-house NIL model liability risk for schools?</h2>



Not all leading stakeholders endorse bringing collective and NIL activity under schools’ umbrellas. <a href="https://www.on3.com/college/north-carolina-tar-heels/">North Carolina</a> Athletic Director Bubba Cunningham told On3 before the proposal was unveiled that he opposed bringing collectives or NIL activity in-house.



“Universities are not prepared to bring collectives or other elements of NIL in-house,” Cunningham said. “There are too many unanswered questions about employment, compensation, antitrust, Title IX and Title VII that must be considered.”



There is another issue related to NIL activities formally moving under schools’ umbrellas that was not addressed in Baker’s letter: increased liability risk for schools.



Consider the perspective of Sean Hughes, co-founder and CEO of <a href="https://athliance.com/">Athliance</a> – a top NIL compliance solution. Hughes said liability would be the biggest issue in such a revamped structure. 



“The clear example of that is that collectives help organize a deal with, like the <a href="https://www.on3.com/college/utah-utes/">Utah</a> team where their <a href="https://www.on3.com/nil/news/utah-utes-crimson-collective-leasing-every-scholarship-football-player-ram-truck-through-nil-deal/">entire team gets cars</a>,” Hughes told On3. “Now, what happens if one of those 18 or 19-year-olds gets a DUI and [hurts] somebody in one of those cars? It’s an extreme example. But there’s very clear-cut liability issues with schools being involved in facilitating those deals.”



Jones echoed potential liability concerns for schools in the in-house NIL model, adding, “As you peel back the onion, where does the liability now shift? How can a university mitigate that and then account for it when some outlying version like that Utah truck deal comes up?”



Overall, Jones gives the NCAA credit for trying to be proactive with the proposal. He wasn’t slinging an arrow at Baker when Jones added what many feel: The NCAA has long suffered from inaction and the lack of creativity. 



From that view, he believes the 117-year-old association checked a box by trying to offer something tangible. But the more he dives into specifics, he said, the more problematic it appears in terms of implementation. 



“What problems does it solve that currently exist that need to be addressed?” Jones said. “It may address some – an answer to Title IX – but it doesn’t address some of the more persistent issues that we are facing.”

ncaa-proposal-some-nil-collectives-rendered-obsolete-others-redefined

On3 NIL

Under NCAA proposal, some NIL collectives could be rendered obsolete, others redefined

Teams

Fan Sites

Forums

Shows

team-link

College Football News

College Football Player Rankings

College Football Rankings

College Football Playoff

College Basketball News

Women's Sports

College

NIL News

NIL Valuation

NIL Deals

NIL Deal Tracker

Sports Business

Transfer Portal News

NCAA Transfer Portal News

NCAA Transfer Portal

Transfer Portal Rankings

Transfer Portal Team Rankings

Transfer Portal

NCAA Transfer Portal Home

Football Recruiting

Basketball Recruiting

Database

Team Rankings

Player Rankings

Industry Comparison

Commitments

Recruiting Prediction Machine

Recruiting

High School News

Schools

High School Search

Rankings

High School Rankings

Scores

High School Scores

High School

NFL Draft

NFL Draft News

Draft By Stars

College Draft History

College Draft Totals

NBA Draft

NBA Draft News

Draft

NASCAR

Culture

Sports Betting

About

On3 App

Advertise

Press

Contact

Football

Basketball

Women's Basketball

Softball

Baseball

News

Deals

Recruits

Events

Newsletter

Alabama

Arizona State

Arizona

Arkansas

Auburn

Baylor

Boston College

California

Removed

Clemson

Colorado

Duke

Florida

Florida State

Georgia

Georgia Tech

Illinois

Indiana

Iowa

Iowa State

Kansas

Kansas State

Kentucky

Lettermen Row

Lettermen Lounge

Louisville

Maryland

Miami

Michigan State

Michigan

Minnesota

Mississippi State

Missouri

NC State

Nebraska

North Carolina

Northwestern

Notre Dame

Ohio State

Oklahoma

Oklahoma State

Ole Miss

The Main Board

Oregon

Oregon State

Penn State

Pittsburgh

Purdue

Rutgers

South Carolina

Stanford

Syracuse

Tennessee

Texas A&M

Texas

Texas Tech

UCLA

Utah

Vanderbilt

Virginia

Virginia Tech

Wake Forest

Washington

Washington State

West Virginia

Wisconsin

BamaOnLine

BOL Round Table

Inside Texas

IT Members Only

DawgsHQ

Dawg Walk

Scoop Duck

Recruiting & Sports

AuburnSports

The Corner

WeAreSC

GarryP's Trojan Huddle

The Wolverine

The Fort

The Lions Den

The Wolfpacker

The Wolves’ Den

GatorsOnline

Swamp Talk

Alabama A&M

Alabama State

Albany

Alcorn State

Abilene Christian

Appalachian State

Akron

Army

Austin Peay

Arkansas-Pine Bluff

Arkansas-Little Rock

Arkansas State

Air Force

Ball State

American

Wofford

Winthrop

Wisconsin-Milwaukee

Wisconsin-Green Bay

Wichita State

Western Carolina

Volleyball

Gymnastics

Men's Lacrosse

Women's Lacrosse

Men's Soccer

Women's Soccer

Women's Track

Men's Golf

Women's Golf

Men's Hockey

Women's Hockey

Men's Swimming

Women's Swimming

Wrestling

Men's Tennis

Women's Tennis

Annual $1

Annual Premium

Annual $1 

Monthly

Annual

Unlimited Access to This and All Articles.

Article (On3 Plus Rivals)

Forum (On3 Plus Rivals)

Under NCAA proposal, some NIL collectives could be rendered obsolete, others redefined

Princewill Umanmielen

Darian Mensah

Charles Bediako

Transfer Portal Intel

Cody Campbell