Companies find digital loopholes in NIL rules to allow direct payments to college athletes

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Two years after the NCAA cleared the way for college athletes to earn money off their fame and celebrity, digital technology is allowing some of them to get paid by their fans without having to do very much in return.

Joshua Frieser, a sports law attorney who specializes in NIL compensation, said the NCAA is unlikely to challenge the new app because it would have to prove the NFT the fan receives is not worth the money they paid for it.

He also noted that there also is no current enforcement mechanism to ensure the pay-for-an-NFT model isn’t misused. Blake Lawrence, CEO and co-founder of Opendorse, which helps colleges and athletes navigate the NIL landscape, said he doesn’t think the idea of trading cash for NFTs will catch on. Most fans, he said, want something more tangible in exchange for sending money to athletes.

Still, he said, that doesn’t mean that some digital assets won’t become an important part of the NIL landscape.creating digital contracts that allow automatic payments once the athlete provides a good or service such as a video birthday greeting. Creator Grant Sapkin said digital trading cards are among the products the athletes can sell.

 

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