Opendorse, The Collective Association announce partnership
Opendorse and The Collective Association have struck a partnership that will see the trade association consisting of 21 NIL entities work closely with the NIL company.
One of the leading marketplace technologies has placed a focus on working with NIL collectives in the last year, as data continues to show roughly 80% of the dollars flowing throughout the space comes from donor-funded entities.
It’s a strategic move for Opendorse, which now positions itself to become a partner with some of the top collectives in the market. The Collective Association (TCA) will soon makeup roughly half of the Power Five.
“There’s access on both sides,” Opendorse founder and CEO Blake Lawrence told On3 in a phone call. “Opendorse will be providing insights and guidance to TCA members, based on trends and the actual ways that collectives are operating. Together, they’re going to share a common voice, but individually they need different solutions. We’re here to provide technology and data that will help collectives run more efficiently. This is a very important segment of the industry for NIL.
“We’re looking at the long-term outcomes, it’s important that we have access to TCA members.”
Since forming in July, TCA has spent substantial time assisting its peers in navigating NIL, whether it be talking through the NCAA’s most recent guidance or the memo released in June by the IRS aimed at non-profit collectives. The TCA also sat down with the SEC and NCAA this summer to discuss a revenue-sharing model for college athletes that does not require them to become university employees.
TCA has also emphasized representing athletes’ views on NIL. Seven NIL collectives are in Washington, D.C., this week to sit in on the House Committee on Small Business despite not being invited as a witness.
“Opendorse shares TCA’s commitment to advocating for and empowering an NIL system that protects the rights and interests of student-athletes, and our combined experience working directly with hundreds of thousands of student-athletes provides an even stronger voice on their behalf,” Spyre Sports Group co-founder and TCA leader Hunter Baddour said. “With our shared first-hand knowledge of how NIL deals work and our extensive relationships around the country, we are excited to join forces with like-minded connectors at this crucial time for ensuring a framework that best serves student-athletes and works well for the many other stakeholders involved.”
Along with providing insights to collectives, Opendorse views the move as a way to continue providing commercial opportunities for collectives. Across the NIL space, more software is being rolled out to service collectives. Partnering with the TCA positions Opendorse to be successful in that portion of the competitive marketplace.
As far as TCA, aligning with a marketplace that athletes frequent makes sense. With 21 collectives and counting, the organization is making an effort to be a voice for athletes. In its opinion, the revenue-sharing model rolled out would be in the best interest of athletes. According to Opendorse, more than 100,000 athletes use the platform.
As the fight for revenue sharing nears, more and more companies and associations will try to strengthen ties with athletes.
“You know, 80% of all NIL compensation comes from collective, and that doesn’t seem to be slowing down,” Lawrence said. “But no matter the source of an NIL deal, there’s still the blocking and tackling. The deal has to be signed, there must be a quid-pro-quo, the payment has to occur. There’s got to be tax forms. And that’s what we do better than anybody.
” I think our unique position is that we’re not a pure play, we don’t just work with collectives. We work with commercial partners. And so a lot of the collectives that choose to work with us, they’re seeking more commercial deals. We’re not just an operational system.”