Wichita State men’s basketball players already cashing in on NCAA’s endorsement policy
Beginning on Thursday, NCAA student-athletes can profit from their name, image and likeness through an interim policy.
Wichita State men’s basketball players Morris Udeze and Dexter Dennis wasted no time in cashing in on their name, as they announced Thursday they both have endorsement deals with the YOKE gaming, a platform that connects fans to star athletes while playing video games.
WSU athletic director Darron Boatright spoke with local media on Thursday afternoon to discuss what he called “a new frontier” for college athletics.
“Wichita State and the athletic department fully endorse and support our student-athletes and their ability to profit off their name, image and likeness,” Boatright said. “We realize our policies and procedures are going to be fluid and continue to adjust over the next hours, days, weeks and months. I’m sure there will be changes and glitches along the way, but we’re here to support these young men and women. It’s a new opportunity for us to assist them with branding and marketing and taking advantage of a brand that they’ve worked so hard all their lives to represent.”
As Boatright alluded to in his opening statement, WSU’s policy on NIL opportunities for its student-athletes is still taking shape. But the Shockers’ athletic director spent some time answering questions that many fans will have about the new rules.
Below is a Q-and-A guide for the new NLI rules.
What is considered an NIL activity?
It is an activity that involves the use of an athlete’s name, image and/or likeness for commercial or promotional purposes where the athlete can be compensated with case, product or other benefits. NIL opportunities cannot be used as a recruiting enticement and payments cannot be contingent on an athletes’ initial or continued enrollment at a school or based on specific athletic performance or achievement. NIL agreements may not be provided without quid pro quo, meaning work must be performed in order to receive payments.
What is professional service provider?
A professional service provider is someone who provides third-party services to either a high school or college athlete. It includes, but is not limited to, an agent, tax advisor, marketing consultant, attorney and brand management company. Under the interim NIL policy, use of a professional services provider for NIL activities is permissible under NCAA rules.
Will Wichita State student-athletes be required to report NIL activities?
The NCAA’s interim policy does not address this issue, which leaves it up to each individual school. Boatright clarified on Thursday that WSU will require student-athletes to report their NIL activities. “The only thing we’re going to ask is for them to let us know what you’re doing,” Boatright said. “We’ll help you where we can. Just keep us informed on what you’re doing.”
Will Wichita State help arrange NIL opportunities?
Boatright said WSU’s initial stance will be to not arrange NIL opportunities for its athletes. “We’re going to let them pursue on their own,” Boatright said. “Based on what we know, that’s not an avenue that we want to travel down. Some may. But we’re going to be here to help them as they bring their opportunities and share them with us and help them do it the right way and hopefully avoid stepping in any potholes along the way.”
Can Wichita State athletes enter into NIL agreements with boosters?
Yes, but the agreement must be quid pro quo and must not be a recruiting enticement or contingent on an athlete’s initial or continued enrollment at WSU or based on specific athletic performance or achievement. “As long as they’re following the rules, we’re going to be as helpful and give as much support to a situation as possible,” Boatright said. “As long as it’s a legitimate business and business where they’re getting paid the same as people performing a similar task, then we’re not going to have a problem with it.”
Can Wichita State athletes wear their uniform or Shocker gear in commercials or endorsement deals?
Boatright said that still being determined by the university. “Those are things that are going to have to clarify themselves over the next few weeks and months,” Boatright said. “I’m sure there will be institutions that don’t allow that and there will be some institutions that do. I think that’s going to be a customized fit with where you are and what the decision-makers at the institution believe to be best.”
Is there a concern that NIL opportunities could distract a student-athlete?
Boatright said it’s a possibility, but ultimately he believes it to be a positive thing for student-athletes. “I think there may be some unintended consequences, but there’s always a concern for that,” Boatright said. “There’s always a concern of there being some students being more ready to work while in college than others. Some really need to focus in academically and some it might not be as challenging that they would have extra time. I think it varies sport to sport and again it falls on the student and how serious they are and what they want to put into it.”
Are state universities at a disadvantage since Kansas does not have state law for NIL rules?
Boatright said he went back and forth with this question, but ultimately believes it’s actually to WSU’s benefit it is not be governed by state laws. “I think we’re in a more advantageous situation as a state now because we didn’t pass anything,” Boatright said. “Each institution can now implement policies and procedures themselves. And I’m sure there will be a time where each conference will weigh in so there’s some consistency.”
What advantages could Wichita and coming to WSU offer in NIL opportunities?
Boatright said he thinks WSU’s tight-knit compliance office could stand out. “We have a smaller department and that’s going to allow us to work more hands on with more of our students where at some of the larger institutions and larger athletic departments, they may not get that same relationship,” Boatright said. “I hope this allows us to really be seen as a collaborative unit for our athletes.”
Does the NIL policy impact an athlete’s financial aid?
No, the interim policy does not impact a student-athlete’s financial aid. NIL compensation is excluded from NCAA financial aid limitations.
Will athletes have to report NIL compensation for tax purposes?
Yes. Athletes may obtain a tax advisor under the interim NIL policy and the NCAA encourages athletes to follow all applicable tax laws. Boatright said that WSU will provide education to its student-athletes about this, but he could see this becoming a potential pitfall. “There’s going to be some tough lessons learned just on the documentation and the taxes and things along those lines,” Boatright said. “Maybe there are things that the student hasn’t thought of. I don’t want to underestimate them, but there will be things that even we haven’t thought of that will be exposed and it’s just going to be a learning opportunity for all of us.”
Can high school athletes engage in NIL activities and maintain their eligibility?
Yes. High school athletes may engage in the same types of NIL opportunities available to college athletes under the interim NIL policy without impacting their NCAA eligibility.
This story was originally published July 1, 2021 at 3:03 PM.
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