South Carolina-driven NIL collectives Garnet Trust, Carolina Rise merge
More consolidation is coming to the donor-funded NIL collective space, this time in the SEC at South Carolina.
The Gamecock-driven entities Garnet Trust and Carolina Rise merged on Thursday. The entity will continue to operate as Garnet Trust, an official partner of South Carolina Athletics, which launched in November 2021. More than 30 months into the NIL Era, booster-led collectives have been charged with payrolling top college football and basketball programs. While institutions have not stepped up and started revenue sharing, collectives are now facing donor fatigue.
Merging two collectives could be a smart way for a united voice in the South Carolina NIL market. The Garnet Trust collective services all South Carolina athletes and is on track to work with 200 athletes in 2024
“As college athletics and the NIL space continue to evolve, it is important for us to adapt to best serve the student-athletes we represent,” Garnet Trust director of operations Jeremy Smith said. “Consolidation and clarity for our fans, donors, and the businesses through which our student-athletes work is paramount, and this combination allows us to capitalize on strengths and focus our collective energy on serving USC’s student-athletes across all sports.”
New members will join Garnet Trust’s ‘Carolina Rise Club’
Carolina Rise launched in May 2022 and played a vital role in supporting Park Avenue, the in-house South Carolina-focused marketing firm managed by Everett Sports Marketing. Now Carolina Rise will operate as one with Garnet Trust. Carolina Rise owner and co-founder JC Shurburtt is set to join Garnet Trust as a consultant.
As part of the merger, preexisting Carolina Rise members will added to the “Carolina Rise Club,” which is set to launch Thursday.
“I could not be more pleased with our work to build Carolina Rise,” Shurburtt said. “I have always wanted to do what is best for the University of South Carolina. After getting to know the team at Garnet Trust and consulting with our members, university administrators, coaches, and outside experts in this space, it became clear that consolidation is in the Gamecocks’ best interest.
“Garnet Trust operates with one of the most fiscally sound budgets in the entire NIL space, and that stewardship is of tremendous importance to me. Most importantly, we share a goal to make NIL at South Carolina first-in-class in the Southeastern Conference and nationwide.”
Consolidation becoming norm in NIL collective world
NIL collectives have become vital in competing in today’s college sports landscape. With a recent preliminary injunction granted in the Eastern District of Tennessee, collectives can now openly negotiate with high school and transfer portal recruits. Arranging lucrative financial packages has become commonplace since the summer of 2021. But the injunction has made the NCAA powerless. The governing body recently announced it has halted all NIL investigations into collectives, too.
That doesn’t mean money is flowing. Collectives and athletic departments are competing for the same booster dollars. The Internal Revenue Service‘s memo last June stating nonprofit NIL collectives are not tax-exempt has deterred some donors. Some collectives have opted to shut down to avoid IRS scrutiny.
Consolidation has become commonplace, too. Over the last 30 months or so, collectives at Auburn, Florida State, Georgia Tech, Minnesota, Nebraska, Oklahoma and Texas have either merged or shut down.
Many NIL experts have continued to tell On3 that collective consolidation is the way to win college markets. That’s especially true as athletic departments tap their preferred collectives and boosters grow tiresome of donating to multiple groups.