Nebraska Athletic Director Troy Dannen says they are walking into a completely different world over the next few years.
However, he feels like Nebraska has done enough leading up to now to compete in the world of name, image and likeness licensing. The roars in Memorial Stadium have been heard for years, but behind the scenes what happens off the field will see a major shift this upcoming year.
“The greatest change of all is we’re going to be paying our athletes $20.5 million this year,” Dannen said.
Dannen says that to support the payroll, the university has had to change its business model.
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“Our coaches will tell you the most important dollar that gets spent is to recruit and retain good quality student-athletes,” Dannen said.
Despite the settlement not even being passed yet, Dannen says the third-party collective NIL works is changing, as well as roster limits. No matter what happens in the settlement, Dannen says there are contingency plans in place for whatever the outcome.
“Nebraska is very fortunate in that I think because of the wisdom of all of my predecessors in athletics, we’re in an extraordinarily strong financial position and we didn’t have to do anything draconian to get to the point where we’re able to support the athletes to the fullest,” Dannen said.
Athletes will not be employees of the university, according to Dannen. These will be NIL rights contracts, meaning the university is providing a fee to utilize athletes’ rights to their name, image and likeness.
“It talks about if you violate academic standards, if you become ineligible because of your conduct, things like that, these contracts become void,” Dannen said.
Most of the deals will be one-year contracts, so if an athlete chooses to leave, there should be no issues. Dannen added that there will be a few exceptions for multiyear contracts, but the hope is the deals will make it attractive enough for athletes to want to stay at UNL.
“We’ve seen a lot of movement related to rev share and NIL,” Dannen said. “If the settlement works as intended, you will see a lot less player movement because of that, because there is a finite amount of money among all the institutions.”
That $2.8 billion NIL settlement is still caught up in the courts. The original deadline was set for June 6, but a federal judge granted an extension, and the new date is June 27. That deadline also pushes the timeline for a potential resolution even closer to the expected start of revenue-sharing payments to athletes on July 1.
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