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Today’s Case

Missouri’s NIL bill may help them land more in-state commits

Last month, Missouri governor Mike Parson signed House Bill 417, which further loosened restrictions on the state NIL law. The revision not only allows coaches and school officials at Missouri colleges to more actively engage with NIL negotiations, but high school recruits can now begin earning NIL compensation when they sign with in-state colleges.

The timing of this is perfect, as Mizzou landed coveted five-star defensive end Williams Nwaneri from Lee’s Summit, MO last week.

Under the revised law, which goes into effect August 28, high school recruits can start earning NIL compensation when they sign a national letter of intent, which happens in November, December or February of their senior year, “or other written agreement to enroll in a postsecondary educational institution in this state.”

That second clause is critical, as it clears a path for Missouri high school athletes who graduate early and enroll in college in January 2024 to sign a financial aid agreement with an in-state university, which can happen as soon as September 1. Such agreements are non-binding for the athletes, meaning they are not required to attend the school but could still earn NIL payments this fall, before signing a letter of intent later this year.

The Verdict:

• Smart strategy to keep athletes in-state

  • Missouri’s athlete-friendly NIL bill means they not only have a greater chance of keeping in-state athletes for college, but seems like a replicable strategy for other states to implement.

• Earning NIL dollars on a verbal commitment and ultimately not attending the school is an interesting loophole

  • Although it’s pretty much a given the athletes that sign with Missouri state schools will ultimately attend said school, these athletes can essentially earn NIL payments and theoretically go to another school instead of their original committed college.

    • In this case, the athlete would not need to pay back the NIL money, as it’s not tied to the school they committed to.

      • Unless a collective affiliated with the commit’s school is giving them money (which is highly unlikely before they step on campus), then the athlete can leverage their NIL before ultimately choosing another school - albeit would be unprofessional and a bad look for the athlete.

• Good time for Nwaneri to grow his personal brand ahead of college

  • Assuming he signs his financial agreement on September 1, this gives him a few months to work on his personal brand, earn deals, and set himself up nicely for the college NIL landscape.

Student-athletes: DO NOT turn down product-only deals

There is value in NIL partnerships that don’t offer money. Check out this video for more!

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Court is adjourned. Go be great!!