BLVD: An Update On the USC NIL Program
The BLVD website and membership program goes live tonight at 5pm and they’ll begin a busy week of content releases and NIL announcements. In anticipation, below is a deep-dive on BLVD as their objective is to answer as many of your questions as possible.
The folks at BLVD shared all of the information and key components of BLVD at WeAreSC.com earlier this afternoon.It’s exceptionally informative and leaves no doubt about what the near and far term goals are for USC’s NIL Program.
If there’s one major point we (BLVD) hope you take away, it’s that BLVD, the entire structure and everything we do, is about Lincoln Riley. It’s his football program, his players, and his NIL model. We have daily conversations to understand his needs and move as needed. BLVD is here to support Lincoln Riley with an ultra-aggressive NIL program that allows us to compete nationwide to recruit and retain the players he needs to win a national championship. We need all of your support to make that goal a reality.
The Percentages
- We’ve officially shifted our overhead expenses to just 5%, amongst the lowest in the country for a Power 5 collective. Upon the announcement of our official partnership with USC Athletics in June, we planned to operate at an industry-standard 85/15 model. Since then, USC made a significant commitment allowing us to reduce our operating expenses.
- All donors now have the ability to direct 100% of their contribution to their sport of choice. Donors can also choose the general athlete fund where a significant majority will go to football.
Alignment with USC
- Unlike most collectives, we are able to speak directly with Lincoln Riley, Andy Enfield, and other key athletic department staff members due to our official partnership.
- This alignment allows us to understand USC’s needs and issues to adjust accordingly. The relationship works both ways where we can communicate back to USC on what’s happening at BLVD.
- Our official partnership grants us access to key information to smoothly handle NIL for athletes such as player’s contact information, academic schedules, and sport requirements. We know when they’re in class, when they’re in practice, who their agents are, and if their parents need to be involved or not.
- We structure our contracts to protect both the coaching staff and the athlete.
- We ensure every NIL opportunity is reported properly through compliance.
- We know when athletes are academically eligible (how else would you know if you don’t have direct communication?) and when they’re in good standing with their respective coaches.
- In the transfer portal era, we have a strong understanding of USC’s needs regarding retention, attrition, and acquisition. We can operate in lockstep with Lincoln’s roster movement.
First 60 Days
- 90+ FB players have opted-in to BLVD, all set to receive some form of compensation this season.
- We’ve issued over seven figures in contracts to the FB players to be paid out over these next 4 months. OL/DL has received more than 33% of the total value.
- We sponsored an OL/DL luncheon through Sam Baker, Frostee Rucker, and Shaun Cody that saw 20 football players interact with donors and other former players. They all got paid for attending.
- Over 50 families are receiving compensation for travel accommodations to see their son play this season, both home and away.
- This week, we’ll be announcing exclusive sponsorship agreements with a local car dealership and local steakhouse.
- We’ve started to build our Advisor and Ambassador board with more information coming soon.
Membership Model
- The membership program is the core of BLVD – it allows us to pay a significant amount of cash to athletes to participate in our NIL opportunities and promote BLVD the brand. There is a misconception out there that we’re solely focused on sponsorship opportunities. In setting a goal of raising $15 million/year through memberships, that couldn’t be more false.
- We’ve committed to a ‘base salary’ for USC FB players, but view it as a salary-cap model with minimums, just like the NFL. If you are a top athlete, do you want to know that player #1 makes the same as player #120 or do you want to know that you’re going to be paid based on your perceived market value? BLVD is in the business of managing funds to maximize efficiency while ensuring we are as competitive as anyone in the country. Most 4/5-stars believe they should make at least $250K/year from their school’s collective.
- We determine market value and our salary cap numbers based on analytics in several different areas including social media, NFL potential, brand perception, character, etc. We also have close relationships with all major sports representation agencies and other key NIL organizations giving us insight and data into the NIL market.
Student Body Right
- We fully appreciate SBR’s passion for USC Football and align with their goal of USC’s return to national championships.
- Fundamentally, USC, Lincoln Riley, and BLVD believe that a one-entity model is in the best interest of USC Football and its student-athletes. This protects all parties involved and allows for efficiency in spending, scheduling, and overall communication. More cooks in the kitchen = more miscommunication. Of course, many programs have several different collectives. That doesn’t mean they don’t have issues. Head Coaches want consolidation, including Lincoln Riley.
- As Lincoln stated, his goal is ‘one united effort’ where he can sell the complete package of BLVD’s offerings. Recruiting is not always about highest dollar value. USC is the total package, including BLVD which can offer cash, representation, sponsorships, cars, travel for family, financial literacy, compliance, etc. He repeated this sentiment again at a donor function on Wednesday evening.
- Our staff is composed of employees who have worked directly for Lincoln Riley at USC and closed top ten recruiting classes in the SEC, Pac-12 and Big Ten in the last 5 years. Lincoln Riley knows best on what Lincoln Riley needs to sign an elite recruiting class. When Lincoln Riley talks NIL potential to recruits, he is speaking about BLVD. BLVD understands that potential and can fulfill it once enrolled. Our job is to come through on what is said in recruiting. A #1 transfer class and recent string of 2023 commits beating Oregon, Ohio State, and Texas seems to prove the model is working.
- Lincoln Riley needs his football team compensated through NIL, but it has to be done in a manner that makes sense for the long-term success of USC Football. If and when room needs to be made on the roster, how those players are supported by NIL plays a significant role.
- We considered a 501c3 model, as did USC, but received major red flags from our legal team on the risk of future IRS involvement. We are represented by one of the most prominent NIL lawyers in Darren Heitner, global law firm Cooley, and industry-leading investment banking firm Moelis & Company. We trust the experts to best guide our structure to ensure the protection of our members, athletes, and partners. NIL is completely new territory and despite any initial 501c3 approvals, the IRS is monitoring.
- Whether SBR is associated with USC or not, USC is 100% still responsible for all actions of SBR that involve its student-athletes and donors. USC’s and BLVD’s goal is to be as aggressive as possible in NIL, while avoiding NCAA or legal investigation. We have the right experts and relationships to ensure we walk the line perfectly.
- There is still a clear path for donors to contribute to BLVD and receive a tax write-off. We advise interested individuals to consult their accountant since there are opportunities to write off your contributions as a business expense. From our conversations with numerous top supporters, a vast majority have company structures to realize these tax benefits.
We Need You
- This only works with the commitment of the Trojan Family to win championships consistently. We want to continue listening to your feedback and feel like you’re a part of this initiative.
- In addition to membership contributions, we are looking for any and all traditional third-party endorsement opportunities. If you are a part of a company that may have interest in marketing deals with our student-athletes, please contact us through our website.
