Enforceability of NIL Deals on Center Stage

On September 24, 2024, University of Nevada, Las Vegas (“UNLV”) starting quarterback Matt Sluka announced that he would no longer play for the team this year because UNLV had not upheld certain off-the-field promises. Sluka stated in a social media post that: “I committed to UNLV based on certain representations that were made to me, which were not upheld after I enrolled. Despite discussions, it became clear these commitments would not be fulfilled in the future. I wish my teammates the best of luck this season and hope for the continued success of the program.” Sluka’s announcement came despite UNLV starting the 2024 season with a 3-0 record, and the timing allows Sluka to “redshirt” and not lose a year of eligibility. Comments from Sluka’s father appear to confirm that the “representations” that were allegedly not upheld were related to compensation for Sluka’s name, image, and likeness (“NIL”).

Sluka’s decision marks the next step in the evolution of college sports’ transition to a quasi-professional sports league. Similar to a professional athlete holding out during contract negotiations, college athletes are leveraging the power that they hold in negotiations with their schools in relations to NIL compensation packages—i.e., the athlete can simply decide to leave his or her team to potentially pursue better options, and preserve his or her redshirt status for that year, regardless of whether the school has upheld its compensation promises. Reports indicate that Sluka made his decision with at least some assurances of offers outside of UNLV that would lead to more money for the quarterback. Although Sluka has every right to maximize his earning potential and hold UNLV accountable for any verbal “assurances” it made, this situation certainly raises questions about whether other schools offered Sluka direct “pay-for-play” offers, which are in the “gray area” at the moment, and also displays potential issues of recruiting outside of the designated periods. There are many athletes and schools operating under verbal “assurances,” which will undoubtedly lead to more situations where players are willing to sit out and/or file lawsuits against schools, collectives, and coaches, similar to the ongoing Rashada v. Napier lawsuit.

Due to recent court decisions, the NCAA’s authority to govern player mobility and to set transfer rules has been essentially gutted, and it has led to a framework that presents more questions than answers. In other professional sports leagues, owners are able to collectively bargain with players’ unions to construct rules governing player compensation and mobility. Unless and until NCAA student athletes are able to form a union and collectively bargain with NCAA member schools, any such restrictions pose potential antitrust risks to NCAA schools. In the meantime, schools, collectives, and athletes can attempt to contract around these issues on a player-by-player basis.

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The opinions expressed on this blog are those of the author and are not to be construed as legal advice.

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