Spyre Sports Group releases statement on NIL deal with Tennessee's Nico lamaleava
The attorney of the Tennessee-driven NIL marketing agency Spyre Sports Group released a statement Tuesday night following news the NCAA is investigating the Volunteers for NIL violations.
Sources confirmed the investigation to On3. According to a statement released by attorney Tom Mars, who represents the agency that oversees Tennessee’s primary collective, Spyre Sports entered into a contract with quarterback Nico Iamaleava in early 2022 that limited his NIL rights. The Athletic reported the California native signed a deal that could see him make $8 million over three years.
According to a report today from the New York Times, the NCAA investigation centers around Tennessee’s collective arranging for lamaleava to fly to Knoxville on a private jet during his recruitment.
“In early 2022, independent of the University of Tennessee or anyone associated with its athletics program, Spyre Sports entered into a mutually beneficial contractual relationship with Nico lamaleava that involved a limited assignment of his NIL rights, no matter which school he chose to attend,” Mars said in a written statement published on social media. “Such ‘representation agreements’ have become increasingly common. The parties agreed that their contractual rights and obligations would be governed by California law, which freely allows prospective college athletes to enter into such agreements.”
Spyre founder Hunter Baddour told On3 this summer the NIL collective executed 1,400 deals since July 2021 and had 90 athletes on active contracts. Spyre told On3 in February 2022 that The Volunteer Club procured $13.5 million in NIL deals.
More than 200 collectives are littered across the college sports landscape, playing a key role in talent and retention. Tennessee is viewed as one of the richest and most successful. Baddour and his partner James Clawson have also taken the lead in forming The Collective Association, a trade association that now consists over more than 20 collectives.
Mars goes on to say in his statement the contract with Spyre and lamaleava was not an inducement and was not conducive to his enrolling at Tennessee.
“The agreement required Spyre to protect the value of Nico’s NIL rights and specifically stated that ‘nothing in [the] agreement constitutes any form of inducement to ATHLETE to enroll at any school and/or join any athletic team,'” Mars writes.
After nearly two years of college sports stakeholders pleading with the NCAA to enforce NIL, the governing body has ramped up its activity in the past few weeks. Florida State was just levied with major sanctions. The Volunteers now join Florida as the second institution under NCAA investigation. More are expected to join the list.