NCAA Addressed NIL Compensation Before the United States Senate

College basketball is in full swing! The NCAA and college basketball fans are gearing up for the March Madness tournament.  In the weeks to come, fans will fill out brackets predicting which teams they believe will make it to the Final Four. The NCAA again stands to generate a billion dollars from the tournament, which is the organization’s biggest moneymaker of the year. Fans will relish in the excitement of Cinderella teams and major upsets. The NCAA will undoubtedly be raking in the money. However, the NCAA will also be spending money as it continues its work behind the scenes to preserve the amateur collegiate model. The farce of amateurism is being challenged at every turn. The challenge currently gaining the most traction is those from several state legislatures with name, image, and likeness (NIL) compensation bills. 

States with Proposed NIL Compensation Bills

Several state legislatures have proposed legislation seeking to give college athletes the ability to profit from their name, image, and likeness (NIL) and to sign with agents. Last year, the state of California signed the Fair Pay to Play Act into law. Since then,  several other states followed suit proposing similar legislation. While the Fair Pay to Play Act will not take effect until 2023, two similar bills in Florida may become effective much sooner. Florida currently has two college athlete name, image, and likeness bills before its state legislature. One is before the house and the other one is before its senate. State lawmakers are not the only ones seeking to expand college athlete rights. The federal lawmakers are too.

Specifically, Congressman Mark Walker introduced the Student-Athlete Equity Act seeking to give college athletes NIL rights. Senator Chris Murphy released a series of reports detailing the myriad of reasons reform is necessary for college sports. All of these critiques of the current collegiate sports model have put the NCAA in the hot seat. The organization has been backed into a corner where it has no choice but the address the elephant in the room. In fact, the NCAA was forced to address that elephant at a Senate hearing last week. 

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The NCAA is in NIL Compensation Crisis Mode

The college athlete NIL compensation issue has taken the NCAA by storm. The NCAA is in full crisis mode. They have realized that there is a strong possibility that several states could enact different laws to address NIL compensation. The NCAA does not want that to happen. As such, the NCAA has turned to the federal government for help. In fact, the organization has spent big money in an attempt to persuade federal lawmakers in their favor. The NCAA and two conferences spent at least $750,000 last year lobbying federal lawmakers to make reforms that favor the current collegiate model. The NCAA is sparing no expense to preserve amateurism.

Amateurism is the notion that college players simply play for the love game and are not paid. The NCAA purports that amateurism keeps collegiate sports distinct from professional sports. They further purport that if college athletes were paid, fans would lose interest. The NCAA maintains that its rules prohibiting payment help ensure that college athletes are not taken advantage of. As such, college athletes are not allowed to receive any type of payment outside of their cost-of-attendance scholarship or other NCAA approved benefits. However, many feel that the NCAA and the collegiate sports system as a whole are in fact taking advantage of the very athletes they claim to protect.

Why is College Athlete NIL Compensation on the Radar of so many Lawmakers?

College sports are a billion-dollar industry. Coaches, athletic directors, and conferences commissioners receive million-dollar salaries. Conferences receive billions of dollars from television broadcasting contracts. Top ranking NCAA officials receive million-dollar and upper six-figure salaries as well. Meanwhile, the athletes are limited to their scholarship. College athletes keep very strenuous and demanding schedules to perform their sport. Most spend at least 40 hours per week on athletically related activities. Despite their major time investment, they are not allowed to receive a bigger piece of the pie. A scholarship is valuable, however, the athletes deserve a bigger piece of the pie they generate for everyone else. It is for these reasons that lawmakers are working so hard to expand the rights of college athletes.

Last week, the Senate Commerce Subcommittee on Manufacturing, Trade and Consumer Protection held a hearing on the name, image, and likeness matter in Washington, D.C. NCAA president Mark Emmert attended the hearing where he was questioned on the NCAA’s handling of a number of issues. Most notably he was questioned and criticized the NCAA’s handling of James Wiseman’s case.

Wiseman was suspended for 11 games for money that his mother received from Penny Hardaway. Wiseman’s mother took the money for moving expenses while Wiseman was in high school. At the time, Wiseman knew nothing of the transaction between his mother and Hardaway. The NCAA also ordered Wiseman to pay the money back. Due to the NCAA’s decision, Wiseman decided to leave college and prepare for the 2020 NBA Draft on his own. The NCAA’s unfairly punished Wiseman for something he had nothing to do with. 

The Senate Subcommittee Urged to NCAA to Swiftly Find a Solution 

In light of the NCAA’s poor handling of Wiseman’s case and several others in the past, several Senators did not appear to be overly confident that the NCAA would not drag their feet on the NIL compensation issue.  Emmert stated that he would work with the schools and relevant decision-makers to make a decision as soon as possible. However, Emmert also stated that the NCAA may need Congress’ assistance in developing a uniform manner to address the NIL compensation issue.

The NCAA desperately wants to avoid having several states with different NIL compensation laws. The Senators at the hearing urged the NCAA to quickly offer a solution to this issue. In April, the NCAA is expected to make another announcement about their plans for NIL compensation. Hopefully, it will be something meaningful for the athletes. Given the NCAA’s general reluctance to give athletes a bigger price of the pie, it seems doubtful. 

James Wiseman Decision and the NIL Compensation Timeline Proves NCAA is not Rushing to Change

NCAA Name Image Likeness James Wiseman

The NCAA has done it again! The billion-dollar non-profit organization demonstrated twice last week that it’s primary objective is protecting the sham of amateurism. First, the NCAA proved that it will be dedicated to protecting their self proclaimed noble objective even when it makes no sense and hurts it’s beloved “student-athletes”. The NCAA’s ruling in the James Wiseman case does exactly that. It makes no sense and is harmful to James Wiseman. Secondly, the NCAA demonstrated that they have no intention of allowing college athletes to “benefit” from their name, image, and likeness (NIL) anytime soon when they released their NIL compensation timeline. In their announcement, the NCAA reaffirmed that any college athlete NIL compensation will be consistent with the current “collegiate model.”

The James Wiseman Ruling

Chase Young James Wiseman

The NCAA ruled that potential number one NBA draft pick, James Wiseman, will serve a 12 game suspension and donate $11,500 to charity for a transaction that transpired between Wiseman’s mother and Penny Hardaway. When Wiseman was in high school Penny Hardaway gave his mother $11,500 for moving expenses. At the time, Wiseman was unaware of the transaction between Hardaway and his mother. Hardaway was not Wiseman’s coach although he later became Wiseman’s high school and college coach. Even though Wiseman did not have anything to do with the moving expenses Hardaway gave to his mother, the NCAA decided that he should be punished anyway. How does this make sense?

The answer is that it does not make common sense, it only makes NCAA sense. Per the NCAA’s rules, it is reasonable for Wiseman to serve a 12 game suspension for something he did not do. It is reasonable to require a “student-athlete” to pay what amounts to an $11,500 fine to a charity for an “impermissible benefit”. This is reasonable from an NCAA perspective because no college athlete is allowed to receive any benefit that is not NCAA approved. From a common-sense perspective, this punishment is completely irrational. A rational person would wonder why is Wiseman being punished? He did not do anything wrong. A rational person would also ask where is a “student-athlete” supposed to get that kind of money?

How Can James Wiseman get the Money Without Violating the NCAA’s Rules?

Wiseman’s sport does not allow him enough time to work to earn that kind of money. Perhaps, his family or a close friend could loan it to him. No, that will not work because that is not permissible, just ask Chase Young. Perhaps, random people could donate the money to Wiseman through GoFundMe like ESPN analyst Jay Williams called for people to do.

This seems like a plausible way for Wiseman to get the money. People who feel that Wiseman has been wronged could offer a helping hand. There is only one problem with this approach. Wiseman would not be able to accept the money because accepting the money would likely result in another NCAA violation. Really, what is Wiseman to do to pay this excessive fine that the NCAA has placed on him all in the name “amateurism”?

The NCAA’s NIL Compensation Timeline is a Stalling Tactic​

In addition to the James Wiseman decision, the NCAA showed its resistance to change when it released it’s NIL timeline. When the NCAA released its very lengthy NIL compensation timeline it became clear that the NCAA is stalling. Per the timeline, the NCAA will not vote on the issue until January 2021. This should come as no surprise. Afterall the NCAA is only addressing the issue after being forced to.

NCAA Name Image Likeness NIL Pay college athletes

The NCAA was Forced to Address NIL Compensation

The NCAA formed a working group to address issues surrounding college athlete name, image, and likeness (NIL) compensation. They were forced to address the issue under pressure from several state legislatures that introduced bills seeking to allow college athlete NIL compensation. The NCAA also faced pressure from Congress as Congressman Mark Walker introduced the Student-Athlete Equity Act. In October, California became the first state to allow college athlete NIL compensation when Governor Newsom signed the Fair Pay to Play Act into law. In October, the NCAA released the findings of the NIL working group. However, the NCAA is not going down without a fight.

When the working group’s findings were released, it became clear that the NCAA is still trying to retain as much power as possible. It has also become clear that the NCAA is going to give college athletes as little rights as possible. The NCAA is dedicated to retaining the current “collegiate model”. The findings did not provide much clarity on the NCAA’s stance on the issue. In fact, it only led to more questions. It seemed like a stalling tactic to slow the momentum of the progress of the NIL compensation movement. The timeline proves that it is a stalling tactic. However, their tactics are not working as Florida is considering legislation that could allow college athletes to profit from their NIL as early as July 2020.

Wiseman’s Decision and the NCAA’s NIL Compensation Timeline Demonstrates that the NCAA will not Change

The NCAA’s decision in Wiseman’s case and the NIL compensation timeline proves that the NCAA is not genuine in making meaningful changes in college sports. The NCAA is only willing to take half measures. The NCAA only wants to give the appearance of change. Their primary concern is retaining control of their billion-dollar cash cow. The NCAA remains dedicated to their cause, even when it is so clearly wrong. Their decision in the James Wiseman case is clearly wrong. The NCAA’s primary motive is showing that they are still in control and dedicated to preserving amateurism at all cost. Once again, the NCAA has proven that some sort of legislation is necessary to push the college athletes’ rights movement forward.

Chase Young, James Wiseman NCAA Inconsistent Rule Enforcement

Chase Young James Wiseman

If anyone is still wondering why lawmakers are so interested in college athletes’ rights, they got their answer last weekend. The NCAA once again demonstrated how unfair their rules are and how they are inconsistently enforced when they declared college football’s and men’s basketball top players ineligible. Ohio State University’s (OSU) defensive end and Heisman Trophy contender, Chase Young, was declared ineligible just ahead of OSU’s game against Maryland. Similarly, the University of Memphis (Memphis) men’s basketball center, James Wiseman, was declared ineligible prior to their game against Illinois-Chicago.  

A reasonable fan may wonder why the NCAA would declare their top performers in their major revenue-producing sports ineligible? Did they get caught cheating on a test? Did they engage in illegal activity? Most would agree that if the answer to those questions is yes, the players deserve their punishment. However, that is not the case for Young nor Wiseman. Neither of them did anything clearly wrong. They were both declared ineligible for receiving financial assistance. Why would the NCAA  declare a “student-athlete” ineligible for receiving needed financial assistance?

The answer is simple. The NCAA’s primary motive is to protect the farce of amateurism. For the NCAA, that means making sure athletes are not given any benefit that is not NCAA approved. No matter how dire an athletes’ need is. Chase Young’s and James Wiseman’s cases are textbook examples of the NCAA’s commitment to their rules; even when it defies all logic.

Chase Young’s Case 

Young was suspended for accepting a loan from a family friend. He reportedly accepted the loan to pay for his girlfriend’s trip to watch him play in the Rose Bowl last season.  That is right, Young was declared ineligible for getting a loan from a family friend so that someone he cares for could be there to support him. Here is the real kicker: Young repaid the loan in April. The person who gave Young the loan is not a booster nor an agent.

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Despite those facts, the NCAA still suspended him. The NCAA felt it right to disrupted Young’s potentially Heisman Trophy-winning and record-breaking season to reaffirm their position on unapproved financial assistance. All Chase Young wanted was for his girlfriend to be there to support him while he gave his body to make millions of dollars for others. Young will serve a two-game suspension for taking a loan from a family friend and paying it back. Somehow, the NCAA believes that this is fair and is the right thing to do. It is precisely these type of decisions by the NCAA that makes lawmakers feel the need to get involved.

james wiseman

James Wiseman’s Case

James Wiseman’s eligibility issue stems from a rather complicated story. Here is the crux of his eligibility issue. Wiseman’s eligibility is in jeopardy due to an $11,500 payment that the current Memphis coach, Penny Hardaway, gave to Wiseman’s mother in 2017. At the time, Wiseman did not know about money. The money was intended to cover moving expenses when Wiseman’s family moved to Memphis.

However, this is not why the NCAA declared Wiseman ineligible. The NCAA declared him ineligible because they determined that Penny Hardaway was a booster due to a 1 million dollar donation he made to Memphis in 2008. The donation was made to fund the school’s Penny Hardaway Hall of Fame. Since the NCAA determined that Hardaway was a booster, the $11,500 that he gave to Wiseman’s mom is impermissible under NCAA rules.

According to NCAA rules, this would make Wiseman ineligible. However, the problem here is that the NCAA knew about the $11,500 payment. With that knowledge, the NCAA declared Wiseman eligible. For some reason, the NCAA has gone back on that decision and declared him ineligible. How is this fair? The answer is that it is not fair. James Wiseman’s case reaffirms how inconsistent the NCAA is in its rule enforcement. It is for this reason, that lawmakers have begun advocating for college athlete rights.

Wiseman’s Case is not Over Yet as he has Sued the NCAA

Wiseman has sued the NCAA and Memphis. He also obtained a temporary injunction on his suspension that has allowed him to continue to play. On Monday, the case will resume where Wiseman will as for an injunction to continue playing. If Wiseman is successful in this suit it could dire ramifications for the NCAA and their ability to enforce their eligibility rules.

The NCAA Continues to Prove that Legislative Action is Necessary

What point does the NCAA really think it is making by declaring Young and Wiseman ineligible? All the NCAA has done is further make themselves bad an unable to consistently enforce their rules. They have inadvertently strengthened the case for college athlete name, image, and likeness (NIL) compensation legislation. After all if Young had able to profit from his NIL he may not have needed the loan. As coaches’ salaries and television revenue continues to soar,  the NCAA cannot continue to justify its actions in cases like Young’s and Wiseman’s. The NCAA’s unfairness and inconsistency in its rule enforcement are precisely why lawmakers have gotten involved. Their involvement appears to be necessary.