Sports Court #49 | A collection of collectives

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Today’s Case

Seven NIL entities officially form The Collective Association

The Collective Association (Photo Credit: On3)

Through the first two years of NIL, over 200 collectives have joined the college athletics’ landscape, and have become necessary to compete in college football and basketball, with numerous donors coming together to pool funds.

With the NCAA pushing Capitol Hill for NIL reform, seven NIL entities have formed The Collective Association (TCA), with plans to spend substantial time assisting its peers, whether it be talking through the NCAA’s most recent guidance or the memo released in June by the IRS aimed at non-profit collectives. TCA also plans to release a revenue-sharing model for college athletes that does not require them to become university employees in the coming weeks.

The seven founding collectives include:

  • Champions Circle (University of Michigan)

  • Classic City Collective (University of Georgia)

  • Happy Valley United (Penn State University)

  • House of Victory (University of Southern California)

  • Spyre Sports Group (University of Tennessee)

  • The Battle’s End (Florida State University)

  • The Grove Collective (University of Mississippi)

TCA is founded on three pillars:

  • To serve as a voice for athletes and their best interests

  • Provide a forum for collectives to discuss current NIL issues and share best practices

  • Provide a unified voice for collectives to leverage their position

The Verdict:

  • This could be the start of something big

    • Collectives joining forces to ensure other collectives are working with their respective athletes properly and leveraging other collectives as resources can certainly help this entity in numerous ways.

      • Additionally, the more collectives that are part of TCA, the better (in theory).

  • Revenue share + non-employee status = win-win for athletes

    • Two major issues in college sports are coming together in this proposed model can only be good for athletes and NIL.

    • Although rev share might not benefit every school, this is certainly a look into a potential future model where college football and basketball separate from the NCAA and form their own league.

  • Good for large-scale NIL deals

    • It would be valuable for brands to work with these collectives to benefit athletes on a broad spectrum

      • Instead of doing one-off deals with one athlete, companies can align with TCA and roll out campaigns for athletes across schools and conferences (including team-wide deals).

        • This way, more athletes earn money from their NIL and brands get their products in front of new audiences.

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