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Episode #161: The NIL Revolution: How College Athletes Finally Got Their Payday · Money Matters with Greg

• 0:00
  Speaker 1: Welcome to Money Matters with Greg, where we dive into the money conversations shaping your life, from investments to estate planning, insurance to taxes.
• 0:09
  Speaker 1: We cover it all with a fresh perspective.
• 0:12
  Speaker 1: Join Greg and his guests each week to get inspired and take control of your financial future.
• 0:18
  Speaker 1: Let's get started.
• 0:19
  Speaker 1: Securities and investment advisory services offered through LPL Financial, a registered investment advisor, member FINRA, sipc.
• 0:43
  Speaker 2: All right, welcome and good afternoon.
• 0:45
  Speaker 2: It's Greg Farrell, ceo and President of Farrell Wealth.
• 0:49
  Speaker 2: The show is Money Matters with Greg.
• 0:51
  Speaker 2: We talk money on this show and anything to do with money.
• 0:59
  Speaker 2: Overall, that's what we're about.
• 1:00
  Speaker 2: So this is the 161st episode of Money Matters with Greg.
• 1:02
  Speaker 2: We're excited to be here today on WVLP 103.1 FM as well, broadcasting on the radio station.
• 1:09
  Speaker 2: That is fantastic and a great community group that we have here at WVLP on today, on Thursdays at 1 o'clock and then also Saturdays at 1 o'clock on a replay as well.
• 1:23
  Speaker 2: We talk the market here.
• 1:24
  Speaker 2: We talk value of money, anything to do to help you invest your money wisely and then also grow your money as well.
• 1:35
  Speaker 2: Going to talk about the NIL world that is, college sports, today, I wanted to talk about a couple of different things as far as that goes.
• 1:44
  Speaker 2: Today I wanted to talk about a couple different things as far as that goes, filling you in on some things that have been going on in our lives here at Farrell Wealth and then also kind of just update you guys on what exactly is NIL, how it works.
• 1:57
  Speaker 2: I'm getting a lot of questions about all this because don't know if you know this overall as far as the audience goes.
• 2:05
  Speaker 2: Some do, some don't, but we started a company that is a subsidiary of Ferro Wealth, helping them navigate the waters of NIL monies and helping them look for their next path or help them with their next path as they move on beyond the game.
• 2:30
  Speaker 2: It is called Fair Wealth NIL Little bit of housekeeping here Very excited that Fair Wealth NIL is helping sponsor the Valparaiso University alumni team called Shield 219 in the game coming up here this Saturday and on the TBT Hoops tournament.
• 2:51
  Speaker 2: That is a 64-team bracket that is national, many different regions come together and play each other.
• 3:01
  Speaker 2: Regions come together and play each other.
• 3:04
  Speaker 2: There are alums from there's a team from Kansas, there's a team from Kentucky, iu my dear IU.
• 3:09
  Speaker 2: There was also Purdue, as far as Butler, you name it.
• 3:14
  Speaker 2: There's a number of different teams For a $1 million winner take all grand prize.
• 3:20
  Speaker 2: At the end of the bracket is the final.
• 3:23
  Speaker 2: Last year Ohio State, the Buckeyes were victorious.
• 3:26
  Speaker 2: Carmen, ohio, congratulations to you and hopefully the Valparaiso University alums, very excited to be a part of that.
• 3:34
  Speaker 2: Fairwealth NIL is helping them with their path and some great, great group of guys on that team and looking forward to watching them here coming this Saturday at Hinkle Hall the vaunted Hinkle Hall where the movie Hoosiers was played for the state championship and hopefully we can bring our best or channel our best, jimmy Chitwood, and get a victory against the Butler Bulldogs.
• 4:05
  Speaker 2: We're actually playing at Butler against Butler, so it's going to be not an easy task, but that's who we drew and hopefully we can get through a game and then move on and maybe even play Indiana University in the second game.
• 4:19
  Speaker 2: So we'll see how this goes.
• 4:21
  Speaker 2: That would be a dream of mine for sure.
• 4:23
  Speaker 2: It would be fantastic and we're really excited to be a part of it.
• 4:27
  Speaker 2: I want to thank all the coaches out there and the staff and everybody else that's putting it together for the opportunity to be a part of it.
• 4:34
  Speaker 2: And basically it's our national launch.
• 4:37
  Speaker 2: It's on Fox sports, so you can find it on FS1.
• 4:40
  Speaker 2: You can also find it on Fox Sports as it moves along and very excited about this.
• 4:46
  Speaker 2: So you know, again, really happy to be a part of the opportunity.
• 4:52
  Speaker 2: Basically it's our celebration of our 15 years in existence as a firm, and this new company, fairwealth NIL, is the driver on this for sure, because it's about sports and we know that life is a game and it's all about the X's and O's and how you put them together.
• 5:10
  Speaker 2: So that's why we're doing it and that's why we're excited to do it.
• 5:14
  Speaker 2: So please tune in if you can.
• 5:16
  Speaker 2: We'd love to have you All right.
• 5:21
  Speaker 2: So what is NIL and why is it a passion of mine to start a new company and to help some of these kids out?
• 5:29
  Speaker 2: Well, a little bit of history.
• 5:31
  Speaker 2: I was an All-Big Ten defensive end at Indiana University.
• 5:35
  Speaker 2: I played under Bill Mallory, who was like a second father to me, and a great group of guys.
• 5:44
  Speaker 2: We had some really good successes before Ultimately went to three different bowl games.
• 5:52
  Speaker 2: I was in the Liberty Bowl, the Peach Bowl and the Copper Bowl.
• 5:55
  Speaker 2: My last game was against Baylor University and Santana Dotson, if you remember him.
• 6:00
  Speaker 2: He went on to play in the pros for over 11 years and we shut them all out.
• 6:06
  Speaker 2: We beat their ass 23-0 that day and there were some amazing players on that team.
• 6:12
  Speaker 2: We ended up being ranked in the top 15 in the nation and it was the highest ranked team that we'd ever had at Indiana University.
• 6:20
  Speaker 2: Obviously, a lot of obscurity and pain for the you know 30 years until Coach Cignetti's come in here and surprised us all with the CFP and the playoff college football playoff system and we're in the top 12 last year, which was amazing and a great run.
• 6:40
  Speaker 2: Not going to belabor you with that, but that's my history.
• 6:44
  Speaker 2: And I was in college.
• 6:46
  Speaker 2: I was Stone Cold broke.
• 6:47
  Speaker 2: I didn't have a dollar to my name to be able to do anything.
• 6:52
  Speaker 2: We had some per diem money that was marginal, but we weren't allowed to have jobs, or if we did have a job it'd be in the summer, but we were also working out and working all summer plus taking classes all summer, so we would take 15 credits in the summer.
• 7:08
  Speaker 2: We were expected to be there in the summer for classes because if you wanted to play, you worked out for the summer.
• 7:14
  Speaker 2: So I never left college in the summer and it was really basically a requirement to be there if you wanted to play and you wanted to be a starter, which I was and we never really had a chance to make money.
• 7:30
  Speaker 2: We weren't allowed to.
• 7:32
  Speaker 2: The NCAA used us as amateurs and made us stay as amateurs for a very, very long time.
• 7:42
  Speaker 2: Amateurs for a very, very long time, until recently in the NIL world.
• 7:50
  Speaker 2: That is an ability for an athlete to promote themselves and profit from their name, image and likeness NIL.
• 7:56
  Speaker 2: And so if you've been following college sports, you probably heard these three letters.
• 8:01
  Speaker 2: And look, you know I've been at it for a long time since this all started and researching this and starting the new company.
• 8:10
  Speaker 2: But a lot of people don't know what it is and a lot of people don't understand what it is and they just hear NIL and they're like oh, you know, I don't like that stuff, it just it bothers me, or whatever they're like you know?
• 8:22
  Speaker 2: Hey, here's the thing I'm going to just tell you right now.
• 8:25
  Speaker 2: Nil is here and it's here to stay and you can like it or not, you can get on board or not, you can just tolerate it or not, just enjoy your and be your fandom.
• 8:34
  Speaker 2: You fan the way you want to fan, that's cool, but it's here.
• 8:38
  Speaker 2: And so let me help you explain Maybe if I can help explain how this all works and how kids are actually able to help manage money and help have some money afterwards.
• 8:52
  Speaker 2: What we're doing with Feral Wealth NIL is really not just working on the money management side of things with athletes and helping them for their future, but also talking about disability insurance, talking about estate planning, because they need wills, they need a living will, they need a last will and testament, they need a living will and they need a medical power of attorney, just like every adult does, just like we talk about in the show all the time.
• 9:16
  Speaker 2: You know, these kids are over 18 years old and, yes, they are making hundreds of thousands of dollars.
• 9:21
  Speaker 2: Some are making much less, maybe a few thousand, some are making 30 grand a year, some are making a half a million and others Texas Tech signing just happened yesterday is getting a guaranteed five million dollars as an 18 year old.
• 9:38
  Speaker 2: So, hello, that's real wealth, that's real life-changing kind of money.
• 9:44
  Speaker 2: What are you going to do with it and how are you going to?
• 9:47
  Speaker 2: How are you going to set yourself up for a few for your future?
• 9:52
  Speaker 2: Because anything can happen.
• 9:55
  Speaker 2: You could be injured, you could not have a career, you could be diagnosed with something awful.
• 10:01
  Speaker 2: It might happen, and I've seen happen.
• 10:04
  Speaker 2: I've seen ACLs be, you know, knees be blown out, I've seen broken legs.
• 10:09
  Speaker 2: I've seen it all.
• 10:10
  Speaker 2: And so this is why we're trying to help out some kids on the NIL side and really focus on that.
• 10:17
  Speaker 2: But back to this.
• 10:18
  Speaker 2: What is NIL?
• 10:19
  Speaker 2: So, first things first, it is in its simplest form.
• 10:22
  Speaker 2: What it stands for is name, image and likeness, and it refers to a person's right to control and profit from how their identity is used for commercial purposes.
• 10:33
  Speaker 2: So you know, real basic wise.
• 10:35
  Speaker 2: But going to talk about high level, as far as you know people that you'll know is really think about it like this when you see a celebrity endorsing a product for instance, michael Jordan and his silhouette on a pair of sneakers, or Arnold Palmer's signature on a can of iced tea, that's them cashing in on their name, image and likeness.
• 11:00
  Speaker 2: Pro athletes have been doing this for a really long time, but college athletes were never able to do it.
• 11:05
  Speaker 2: I mentioned at times in a presentation just recently about Johnny Manziel.
• 11:10
  Speaker 2: Johnny Manziel was probably one of the last most famous athletes that did not, or was not allowed to be able to cash in on his NIL.
• 11:19
  Speaker 2: It went on to obviously a Heisman Trophy winner, obviously a first first round draft pick for the for the Cleveland Browns.
• 11:28
  Speaker 2: Um and uh, many jerseys were sold at Texas A&M with his name on it that he never profited from.
• 11:36
  Speaker 2: So, uh, that's all changed and that's all changing.
• 11:40
  Speaker 2: And that allows NIL, allows college athletes to really monetize their personal brand through things that like endorsement deals, social media sponsorships, autograph signings and even selling their own merchandise.
• 11:53
  Speaker 2: So one of the biggest examples in the world right now is LSU gymnast Olivia Dunn.
• 11:59
  Speaker 2: If you don't know her, she's a huge influencer on social media.
• 12:05
  Speaker 2: She's racked up deals with American Eagle Fiori, all earning millions.
• 12:12
  Speaker 2: You obviously know Caitlin Clark and what she did at Iowa she had Gatorade, she had Wilson and she had a number of other endorses.
• 12:20
  Speaker 2: She was making almost $30 million before she even touched or signed a contract with the WNBA and her salary right now is right around $79,000.
• 12:32
  Speaker 2: So that's how big this has become.
• 12:35
  Speaker 2: I'm going to go back to USC quarterback and now Bears quarterback, because obviously he's very special to us as Bears fans.
• 12:42
  Speaker 2: But Caleb Williams he was seen sipping a Dr Pepper in commercials back when at USC.
• 12:47
  Speaker 2: These are the kind of opportunities that NIL has opened up.
• 12:53
  Speaker 2: But here's the catch NIL isn't about the schools paying athletes directly for playing the NCAA still forbids and maintains the amateurism model in regards to this but instead athletes can profit from a third party brands, businesses, even fans.
• 13:12
  Speaker 2: You can literally go on opendoorscom, which I highly recommend to check it out Opendoors, d-o-r-o-s-e and see how many different athletes are out there that have an ability for you to be able to hire them.
• 13:29
  Speaker 2: You can have them show up at your tailgate, you can have them give your kid a birthday shout out.
• 13:35
  Speaker 2: You can pay them through their system and the athlete will get a cut.
• 13:42
  Speaker 2: Obviously, open Doors takes their percentage, but what a great way for many athletes that don't have the notoriety and the name recognition of a Caitlin Clark.
• 13:55
  Speaker 2: But there are thousands of athletes on this platform.
• 14:00
  Speaker 2: I highly recommend you check it out and if you are a fan, maybe you know search for your favorite team and search for your favorite player.
• 14:08
  Speaker 2: And you know I've seen a number of different things.
• 14:12
  Speaker 2: As far as birthday shout outs, I've had I've even done endorsements for birthday short shout outs for clients that are fans of a certain team.
• 14:20
  Speaker 2: I highly recommend that.
• 14:22
  Speaker 2: That's a great way to intentionally gift something to a parent, grandparent, you name it when an athlete gives a nice little 30-second shout out and the costs are minimal.
• 14:36
  Speaker 2: I mean you're talking 50 to 100 bucks to be able to have some of that sort of thing.
• 14:40
  Speaker 2: It's really really cool.
• 14:41
  Speaker 2: So.
• 14:41
  Speaker 2: So, because it's third parties, you're still able to keep your eligibility to compete in college sports and it's a workaround that gets athletes paid without being labeled professionals.
• 14:55
  Speaker 2: So in the world of NIL I just want to be able to explain this pretty simply there are two buckets of money.
• 15:01
  Speaker 2: There's the NIL money that I just explained, where you can actually do your job as an athlete, build your own brand, build your own company, profit from your name, profit from your hard work, go after deals and endorsements across the board and get paid.
• 15:17
  Speaker 2: Okay, that is what is so much different, but that's not.
• 15:21
  Speaker 2: That's just one part of NIL, okay.
• 15:23
  Speaker 2: So, and that is the part that's the most important part in my opinion, because you know, I was never allowed to be able to do this and I was stone cold, broke.
• 15:33
  Speaker 2: I mean, none of my teammates were allowed to be able to do this, and then we all would have been doing something.
• 15:39
  Speaker 2: I would have been like a NASCAR driver sponsorships everywhere.
• 15:43
  Speaker 2: I would add patches all over myself.
• 15:44
  Speaker 2: I mean, if you wanted to endorse me for $500 or $1,000 to be able to go to your barbershop or to go to your tailgate, hey, I would have absolutely been a whore about it.
• 15:55
  Speaker 2: I would have tried to get as much money as I possibly could and I couldn't.
• 16:00
  Speaker 2: I'm not allowed to do it.
• 16:01
  Speaker 2: You know, I was told that even Coca-Colas and sodas that were given to us were had to be, like, inventoried and things like that.
• 16:10
  Speaker 2: To be able to, they had to show to the NCAA that.
• 16:12
  Speaker 2: You know the university gave us this and through the football program, you know that's how strict it was.
• 16:19
  Speaker 2: And now you know, basically the NCAA, in my opinion, has always been really good in enforcing rules and collecting fees.
• 16:26
  Speaker 2: You know now there are no rules.
• 16:30
  Speaker 2: So what do they do?
• 16:31
  Speaker 2: They just collect fees.
• 16:31
  Speaker 2: I mean, literally that's all they do.
• 16:33
  Speaker 2: So they're 0 for 44 right now in law cases against them in regards to NIL and amateurism.
• 16:41
  Speaker 2: You know they're losing every single time and then that will continue.
• 16:47
  Speaker 2: It's all about the athlete right now and it's all about their ability to be able to take advantage of their name, image and likeness.
• 16:54
  Speaker 2: So if an athlete wants to be able to produce their name, image, likeness and get an endorsement deal from Cabela's or wherever you name it, if they like to hunt and fish, go for it.
• 17:07
  Speaker 2: You should be talking to you know different managers out there at different stores.
• 17:12
  Speaker 2: You should be talking to different business owners.
• 17:14
  Speaker 2: That is, it's up to you, right?
• 17:16
  Speaker 2: That is an opportunity that should not be wasted because it is a glorious opportunity that should not be wasted, because it is a glorious opportunity and I'm jealous that you're able as an athlete, that you're able to do that, but for years.
• 17:32
  Speaker 2: So that's one bucket.
• 17:32
  Speaker 2: The other bucket is what you see as far as these consortiums that are part of the university, that are donor endorsed and those are actually giving money to pay players on a consistent basis based on their ability to be a first string, second string, third string player and the notoriety and how good they are as a player.
• 17:53
  Speaker 2: So that's totally different than NIL, okay.
• 17:57
  Speaker 2: So I'll talk about that later, but that's basically what you see in the papers and what you see in the media and social media is you know, the university paid.
• 18:07
  Speaker 2: No, the university is not allowed to pay.
• 18:09
  Speaker 2: Ok, so that's not allowed per the NCAA and per all the different court cases.
• 18:14
  Speaker 2: Basically, there are these large groups that have put into money and those are changing too, because this has been going on for a while as far as these large groups.
• 18:25
  Speaker 2: But the groups are changing based on the new revenue share that just came out that you see in the news about 21 million dollars and how this is going to get split up, and I'm not going to get into all that today.
• 18:36
  Speaker 2: I really wanted to just talk about a high level conversation about what NIL is and give you the idea that there are two buckets One's up to the athlete, the other's up to the consortium to be able to decide how much that athlete gets, and then what the athlete actually agrees to is under contract.
• 18:54
  Speaker 2: So, but let's just go back in time just a little bit and talk about how NIL kind of came to be time just a little bit and talk about how NIL kind of came to be.
• 19:10
  Speaker 2: And for years the NCAA was the big boss and they held firm on their idea of amateurism, which is a joke.
• 19:14
  Speaker 2: I mean, everyone says you know, you got an education.
• 19:17
  Speaker 2: Well, you know what I should have been able to profit from being a starter, from being an entrepreneur, from being a business owner in my own brand?
• 19:30
  Speaker 2: You know, I should have been able to, and we never were, and so that's why all these lawsuits have been happening and that's why athletes are winning.
• 19:40
  Speaker 2: So the deal was simple back then College athletes could get scholarships, room board and maybe a small stipend, but no cash for their name or image or likeness, and the NCAA argued that this kept college sports pure, untainted from the evils of money.
• 19:58
  Speaker 2: Meanwhile, schools and coaches and NCAA itself were raking in billions of dollars on TV deals, ticket sales, merchandise from players' jerseys, without sharing a dime with the athletes.
• 20:10
  Speaker 2: That made it all possible.
• 20:13
  Speaker 2: So the setup it didn't sit right with everyone, especially the athletes, and the athletes and their families noticed this unfairness forever and everybody was getting rich off their hard work.
• 20:23
  Speaker 2: Even the NFL fairness forever.
• 20:24
  Speaker 2: And everybody was getting rich off their hard work.
• 20:25
  Speaker 2: You know, even the nfl.
• 20:26
  Speaker 2: I mean, the nfl was.
• 20:26
  Speaker 2: You know, the college was basically a breeding ground for the nfl, right?
• 20:30
  Speaker 2: Uh, you know, in in baseball you have all the minor leagues.
• 20:35
  Speaker 2: Well, I, college is kind of a minor league uh, breeding ground, uh, for the nfl.
• 20:41
  Speaker 2: You know like they take advantage of colleges all the time over all this because they want to be able to play and get away from a scholarship or get away from not making any money.
• 20:51
  Speaker 2: And now that's changing too, because a lot of kids are staying in school because they can actually make more money in college than they could if they'd actually tried the NFL.
• 21:00
  Speaker 2: But this unfairness was rampant and everybody was getting rich off of the hard work, except for the NFL.
• 21:04
  Speaker 2: But this unfairness was rampant and everybody was getting rich off of the hard work, except for the athletes.
• 21:08
  Speaker 2: So the tide really turned with a guy by the name of Ed O'Bannon.
• 21:12
  Speaker 2: He's a former UCLA basketball star and back in 2009, o'bannon he sued the NCAA because his likeness was used in an EA Sports NCAA basketball video game without his consent or compensation.
• 21:28
  Speaker 2: He argued this violated antitrust laws and in 2014, the courts agreed.
• 21:36
  Speaker 2: So it was a five-year fight for him, but they agreed and they ruled that the NCAA's amateurism rules were unlawful and they were a restraint of trade.
• 21:48
  Speaker 2: Let us hit the free market.
• 21:51
  Speaker 2: Let us try to sell our image as much as we can.
• 21:57
  Speaker 2: If you don't want to, that's fine, but to have the option is fantastic, and this case really cracked the door open for change.
• 22:05
  Speaker 2: So then you fast forward to, let's say, 2019.
• 22:08
  Speaker 2: So the states started taking matters into their own hands, and California led the charge with the Fair Pay to Play Act, which really allowed athletes to profit from their NIL starting in 2023.
• 22:23
  Speaker 2: Now other states like Florida, colorado, nebraska they all followed suit, putting pressure on the NCAA.
• 22:29
  Speaker 2: And then in June into 2021, the US Supreme Court, so the highest court in the land dropped a bombshell in the NCAA versus Alston, and that court unanimously ruled that the NCAA couldn't limit, could not limit education related benefits for athletes, weakening this grip on amateurism, that amateurism defense.
• 22:54
  Speaker 2: So just days later, july 1st 2021, the NCAA threw in the towel and adopted this interim NIL policy allowing athletes to profit from their name, image, likeness, without fear of punishment.
• 23:08
  Speaker 2: And this was seismic.
• 23:10
  Speaker 2: This was huge as far as the change and overnight college athletes went from being barred from earning a penny for an autograph.
• 23:26
  Speaker 2: Imagine that, if you remember, ohio State, jim Trestle got fired because five of his guys went to a tattoo parlor and got $500 worth of tattoos and he didn't disclose it, like he lost a $3 million a year job because he didn't follow protocol, and just walk a notice down to the compliance officer and say my guys went into a tattoo parlor and got paid for it.
• 23:47
  Speaker 2: Well, now they can walk into that parlor, do whatever they can do Instagram posts, they can do social media, whatever they want to do and they just have to be able to disclose it to the university and then obviously pay taxes.
• 24:01
  Speaker 2: Whatnot, w-9, you name it and then obviously pay taxes.
• 24:03
  Speaker 2: Whatnot, w-9, you name it, but this opened up basically the wild wild west.
• 24:10
  Speaker 2: So it has been the wild wild west.
• 24:13
  Speaker 2: I think it continues to be the wild wild west and there's a lot of complexity and controversy over all this.
• 24:19
  Speaker 2: But let's just talk about the impact, since this is legal, and how this impacts the sports landscape.
• 24:27
  Speaker 2: It's just totally transformed.
• 24:28
  Speaker 2: So now athletes are influencers or entrepreneurs or brand ambassadors.
• 24:33
  Speaker 2: You know, university of Colorado, shadur Sanders, I mean, he earned millions four and a half million dollars in 2024 alone and others and just like small school athletes, they might have local deals now with car dealerships, like I mentioned, and restaurants.
• 24:49
  Speaker 2: You know the range is wild, from seven figures to, you know, a hundred bucks.
• 24:56
  Speaker 2: And really this is where it gets messy is the NIL rules vary state by state, so this creates sort of a patchwork of regulations, as far as you know, whatever this looks like, and some states have strict laws and others are more lax and few have no NIL laws at all.
• 25:14
  Speaker 2: So this means the athlete in California might have more freedom to cash in on one state without specific legislation, and schools and conferences really have their own rules, adding another layer of complexity for athletes.
• 25:29
  Speaker 2: That just makes it really really difficult to navigate.
• 25:33
  Speaker 2: So you know, for the athlete it's really difficult to navigate because they've got to figure this all out.
• 25:38
  Speaker 2: For the university it's difficult and you've got to figure this all out.
• 25:41
  Speaker 2: For the parents of the athlete, trying to help the kids grandparents, uncles, aunts, everybody, whomever that entity might be is really, really important, and they need to know what to do and how to do it.
• 25:57
  Speaker 2: It doesn't make it easy.
• 26:00
  Speaker 2: And then there's the issue of the collectives that I was talking about, the consortiums of third-party groups, and they are often run by boosters that really pool money together to create opportunities for these athletes.
• 26:12
  Speaker 2: So, rather than donating money to the school, like they used to, and hopefully use it for the program or however it might be, now they can actually send money that's going to go directly to the athletes.
• 26:21
  Speaker 2: And the money raised from this has been in the billions and it's just crazy how much money is going after some of these kids.
• 26:29
  Speaker 2: But it's all legal, it's free market, it's up to the kids.
• 26:35
  Speaker 2: If you're able to get $5 million to be able to go play at Texas A&M, good on you, good for you, you know.
• 26:42
  Speaker 2: So these collectives have become huge players but extremely controversial, and the NCAA says collectives can't be used to lure recruits and promises of cash, but provided in line, which is a complete joke.
• 26:56
  Speaker 2: Again, ncaa, what are you doing?
• 26:59
  Speaker 2: You're not allowed to do this, you're not allowed to do that, but then they don't do anything about it.
• 27:04
  Speaker 2: So there's no leadership and there just hasn't been for years, and they'll never continue will be.
• 27:11
  Speaker 2: It will just continue like this.
• 27:13
  Speaker 2: So don't look to the NCAA for any sort of help with this.
• 27:17
  Speaker 2: It's not going to happen.
• 27:18
  Speaker 2: You know I'm going to give you an instance of the University of Tennessee.
• 27:22
  Speaker 2: You know I'm going to give you an instance of the University of Tennessee.
• 27:48
  Speaker 2: So you're under investigation.
• 27:49
  Speaker 2: But what exactly happened?
• 27:50
  Speaker 2: You know what exactly are the ramifications.
• 27:54
  Speaker 2: You have Michigan recruiting a kid out of LSU that committed to LSU and it was clearly it was a money grab.
• 28:01
  Speaker 2: And look, it's tough to blame the school and you certainly can't blame the athlete.
• 28:07
  Speaker 2: Like, they get an opportunity to be able to flip schools for whatever, and with the portal, now that it's, that allows kids to be able to jump wherever they want to jump, which is a whole nother conversation that I'd love to be able to get into, as we maybe do another series of this and explain exactly how the portal has changed the landscape of sports but also really helped the athlete as well.
• 28:35
  Speaker 2: You know, for instance, when I was recruited and I had offers from, I was lucky enough to have multiple offers from a lot of different, really great universities that all had great football programs.
• 28:49
  Speaker 2: So I was blessed and so.
• 28:54
  Speaker 2: But making that decision was extremely hard because the letter of intent really meant something.
• 28:58
  Speaker 2: When you signed a letter of intent, it meant you're going to the school period.
• 29:02
  Speaker 2: Signed a letter intent meant you're going to the school period.
• 29:06
  Speaker 2: That really hurt when a coach would get a job at a new university because they're bettering their family and getting an opportunity to be able to jump.
• 29:13
  Speaker 2: I'm stuck.
• 29:15
  Speaker 2: My teammates in my class all 26 of us or 22 of us or whatever it might be as far as that class are stuck.
• 29:24
  Speaker 2: We're screwed, we can't go anywhere.
• 29:26
  Speaker 2: But the coach that recruited us and his likely his staff are all moving on.
• 29:32
  Speaker 2: Oh, that sucks Like I want.
• 29:36
  Speaker 2: I want to move on too.
• 29:38
  Speaker 2: I had other offers.
• 29:39
  Speaker 2: You were my number one, but it was your number, my number one because you are the coach I want to play for.
• 29:45
  Speaker 2: You're the staff I want to play for.
• 29:47
  Speaker 2: You're the system I want to play for.
• 29:49
  Speaker 2: You have the position that I actually want to be, whatever it might be.
• 29:53
  Speaker 2: All of these matter the culture, the winning, everything matters.
• 29:58
  Speaker 2: And then you get screwed by a coach jumping and you can't blame them.
• 30:06
  Speaker 2: But you're 18 and your future's stuck into four or five years of some other regime coming in that you don't know who the coach is, and suddenly everything blows up and you've got to really re-recruit yourself, because now you're stuck on a letter of intent.
• 30:24
  Speaker 2: Well, things changed over the years Suddenly.
• 30:27
  Speaker 2: Your letter of intent really didn't mean anything.
• 30:30
  Speaker 2: So now you can move.
• 30:32
  Speaker 2: And I think that's a wonderful thing because the kids can move too.
• 30:38
  Speaker 2: They can change their mind, which happens because a lot of coaches promise a lot of things to athletes just to get them in the door, to satisfy sponsors and to satisfy things, and then the kid gets in the door and they're like this isn't anything like God has promised as far as the culture, the winning, everything else.
• 30:59
  Speaker 2: It's a toxic environment.
• 31:00
  Speaker 2: I want out.
• 31:01
  Speaker 2: Well, you can't get out, you're not allowed to because you're here, stick it, you know, and that sucks.
• 31:09
  Speaker 2: That's not right.
• 31:10
  Speaker 2: So now you can actually move and look, people are moving way too often.
• 31:14
  Speaker 2: I think there should be some sort of you know limit on how often you can move, because, look, you don't need to move four times in your career because things are so bad.
• 31:23
  Speaker 2: That's just choosing really poorly.
• 31:27
  Speaker 2: Like, come on, you can't find a school to stick with for a few years.
• 31:30
  Speaker 2: Like, come on, that's just you looking for money and trying to get more playing time somewhere, looking for money and trying to get more playing time somewhere.
• 31:46
  Speaker 2: But the one big challenge in all this too that I've mentioned is team dynamics, like when one player from a team is making millions of dollars and the other is getting nothing.
• 31:50
  Speaker 2: It really breeds resentment and disrupts the unity.
• 31:55
  Speaker 2: So that risk there is, like losing this eligibility if you don't follow state or school rules.
• 32:02
  Speaker 2: And then the other thing too is, you know, for international students, just throwing this out on F-1 visas, nil is extremely tricky because they can't earn active income in the US Though they are navigating all these signing deals and trying to do this abroad is really tough.
• 32:18
  Speaker 2: I give you know Zach Eady as an example for that from Purdue, who's making millions at Purdue just recently.
• 32:26
  Speaker 2: You know, obviously he's in Memphis now, but you know he got.
• 32:32
  Speaker 2: He got millions of you know, rumors where he got into a house for his mom and a number of things.
• 32:38
  Speaker 2: Like he's from Canada.
• 32:39
  Speaker 2: Like how do they negotiate that as far as navigate those dollars, because he's not a citizen, so like, how does that work?
• 32:46
  Speaker 2: And basically, that's just you know.
• 32:51
  Speaker 2: Another thing to have to think about.
• 32:52
  Speaker 2: So another thing throw this out.
• 32:56
  Speaker 2: Let's not forget the 2025 house versus NCAA settlement that just came out.
• 33:01
  Speaker 2: So this is a massive $2.8 billion deal and this is expected to be all finalized.
• 33:07
  Speaker 2: It looks like it's done, but we'll see, because there are already lawsuits coming out of this.
• 33:14
  Speaker 2: Back at it.
• 33:15
  Speaker 2: But this will allow D1 schools to directly compensate athletes for their NIL starting July 1st 2025.
• 33:23
  Speaker 2: And this is a huge leap.
• 33:25
  Speaker 2: But it's raised questions on whether college sports is drifting too close to the professional model, and I got news for you it's already there, so get used to it.
• 33:35
  Speaker 2: But what does it all mean for the future?
• 33:39
  Speaker 2: So the future of NIL and college really just you know, kind of like, let's put our crystal ball hats on and try to talk about where NIL is headed.
• 33:48
  Speaker 2: You know, the future of athletics is at a massive crossroads and NIL is a big reason why.
• 33:55
  Speaker 2: First, there's this push from federal legislation to create uniform NIL rules.
• 34:00
  Speaker 2: Well, we know how well federal regulation does in regards to most things.
• 34:06
  Speaker 2: You know what it's always best just to, if there's a knock at your door and they say it's the government, you know what, don't open the door and because they're probably just going to mess things up or they're going to regulate things they shouldn't be involved in.
• 34:23
  Speaker 2: So that's not the answer in my opinion, and neither is the NCAA.
• 34:29
  Speaker 2: So I don't know what.
• 34:30
  Speaker 2: I don't know what the answer is overall, but that's not my job to come to present.
• 34:36
  Speaker 2: I'm just trying to help kids along while the while the world is what it is and while it continues to create.
• 34:42
  Speaker 2: I think there's a great education for these kids financial literacy.
• 34:46
  Speaker 2: Take advantage of it, get your bag, let's go and let's run, because this is awesome.
• 34:53
  Speaker 2: I'm a big fan of the ability to do it.
• 34:56
  Speaker 2: I'm not a fan of all of it, for sure.
• 34:59
  Speaker 2: But you know, right now, the patchwork of these state laws creates confusion, giving some schools this sort of recruiting edge.
• 35:06
  Speaker 2: And you know, it's just.
• 35:10
  Speaker 2: It's really, really tough.
• 35:12
  Speaker 2: With this house versus NCAA settlement, that's really just a game changer.
• 35:16
  Speaker 2: It basically is, in essence, $21 million of the Power Five Conference, they'll all get $21 million in overall money and they can pay athletes directly for their NIL.
• 35:28
  Speaker 2: So the way it was before, universities could not do that.
• 35:33
  Speaker 2: Well, as of July 1st 2025, they can't, and how that money then gets distributed is up to the school.
• 35:41
  Speaker 2: So they're all going to get $21 million.
• 35:43
  Speaker 2: If they split it between Title IX sports for women and men and split it evenly, they can do that.
• 35:51
  Speaker 2: If they want $21 million to go to men's football, they can't.
• 35:54
  Speaker 2: If they want $21 million to go to their bank account, the university can't.
• 35:59
  Speaker 2: They don't have to spend it.
• 36:02
  Speaker 2: There's no forcing.
• 36:03
  Speaker 2: They can do whatever they want.
• 36:04
  Speaker 2: But this is a new rule that just came about.
• 36:06
  Speaker 2: So how is that going to look and that's all brand new.
• 36:12
  Speaker 2: So, with the collectives, because of that, the collectives are fighting or getting tighter regulations, and some of them, and a lot of the ones that were for charity, where a kid would endorse charity for cash those have all gone away because there's just no need for it, which is sad in my opinion, because that was really cool when you got to see an athlete actually endorse United Way and a number of other really quality charities that are out there, but that's basically that's gone away overall with this new settlement.
• 36:47
  Speaker 2: So the NCAA they are beefing up enforcement, they're hiring new staff to crack down on violations, but I'll believe it when I see it.
• 36:56
  Speaker 2: I have no, no faith, full faith and credit and no, no faith in the NCAA.
• 37:06
  Speaker 2: And proposed rules can also sort of limit this influence of collectives and everything else, but ultimately the athletes are holding all of the cards here.
• 37:13
  Speaker 2: I mean you can't go for 44 in legislation in the courts and think that you have a leg to stand on.
• 37:23
  Speaker 2: So you know, we'll see how this all turns out, but I just wanted to be able to make sure that you hear out there that it's so much more than just these athletes taking advantage of things and basically what you see in the media.
• 37:43
  Speaker 2: There's so many more layers in regards to this that are just changing the landscape.
• 37:52
  Speaker 2: So you can tell I'm passionate about this.
• 37:56
  Speaker 2: I'd obviously get on a rant as well, but where does that leave us Ultimately?
• 38:02
  Speaker 2: I think I am going to do another couple episodes here to explain a little bit more, but NIL has really given college athletes a chance to take control of their financial futures.
• 38:11
  Speaker 2: It's something long overdue, in my opinion, now it's a victory of fairness.
• 38:18
  Speaker 2: It's born out of decades of legal battles and shifting cultural views on what amateurism really is, but it's also opened a Pandora of challenges overall, even uneven regulations, team tensions and questions about the soul of college sports.
• 38:36
  Speaker 2: And questions about the soul of college sports and looking forward, I think we'll see a tug of war between those who want college athletics to stay true to its roots and those who see it evolving into a more professional model.
• 38:48
  Speaker 2: I'm telling you right now it's leaning much further towards a professional model than it ever has and running away with that.
• 38:55
  Speaker 2: So you know you're going to have to get your head around the fact that, yeah, you know what the days of 20 years ago are over Federal laws, tighter NCAA rules.
• 39:07
  Speaker 2: You know we'll maybe see a governing body that could reshape the landscape.
• 39:11
  Speaker 2: Coach Saban has been recruited to lead a committee.
• 39:15
  Speaker 2: He's vehemently against NIL and probably retired because of it, as where many coaches have, because they just don't want to deal with it, which I don't necessarily blame them.
• 39:25
  Speaker 2: But whatever happens, one clear thing is clear is NIL just isn't a policy, it's a revolution, and that's all I wanted today for today's episode.
• 39:37
  Speaker 2: To talk about the show's Money Matters with Greg.
• 39:40
  Speaker 2: I'm Greg Farrell, ceo and president of Farrell Wealth.
• 39:43
  Speaker 2: I have launched a new company called Farrell Wealth NIL and we're very excited to be able to endorse TBT Hoops and the environment of TBT Hoops and the Shield 219, which is the area code here for the Valparaiso University alum group that is playing in the TBT.
• 40:02
  Speaker 2: You'll see them on Saturday on Fox Sports.
• 40:05
  Speaker 2: I hope you're able to check them out.
• 40:09
  Speaker 2: The show's money manager, greg.
• 40:10
  Speaker 2: We broadcast on WVLP 103.1 FM.
• 40:13
  Speaker 2: Thank you to WVLP for the opportunity to be able to be here and if you have any questions, as always, greg at fairwealthcom is my email.
• 40:23
  Speaker 2: Office number is 219-246-2516.
• 40:27
  Speaker 2: Feel free to call at any time and we will get back to you.
• 40:32
  Speaker 2: If you certainly leave a message, if you want to talk about this or however this goes, and then also if you are an athlete out there.
• 40:41
  Speaker 2: I'm going to just throw out a plug.
• 40:44
  Speaker 2: We're doing some great things helping out athletes that it's all about trust, that you can trust, and not talk to Cousin Earl or so-and-so that has some sort of banking background or finance background that you don't even know about for years.
• 41:06
  Speaker 2: This is all about going in the right place and setting yourself up for the future and making sure that those monies are still there when you graduate.
• 41:14
  Speaker 2: You never know what's going to happen in the future.
• 41:16
  Speaker 2: Making sure that those monies are still there when you graduate.
• 41:17
  Speaker 2: You never know what's going to happen in the future, and this is an opportunity for you to go grab it.
• 41:20
  Speaker 2: So go grab it, save it, grow it, protect it All of these things we talk about on this show.
• 41:25
  Speaker 2: But you know, it doesn't matter your age.
• 41:28
  Speaker 2: So you're 20 years old and making a half a million dollars as an offensive lineman at a prominent university.
• 41:35
  Speaker 2: Good for you.
• 41:36
  Speaker 2: Go, but save it.
• 41:39
  Speaker 2: I'm telling you right now.
• 41:41
  Speaker 2: You're going to need it in the future and there's opportunities that NIL will give you that you've never had before.
• 41:47
  Speaker 2: You might want to start a new business, you might want to franchise something, you might want to flip real estate.
• 41:55
  Speaker 2: Whatever the case is, you now have an opportunity to be able to bag enough money to do these things in the future.
• 42:03
  Speaker 2: So I highly recommend you go after it, get after it and make sure you manage it the right way.
• 42:10
  Speaker 2: So again, thanks.
• 42:12
  Speaker 2: Again, it's Money Matters for Greg.
• 42:14
  Speaker 2: I'm Greg Farrell, ceo and President of Farrell Wealth, and also CEO and president of Farrell Wealth NIL.
• 42:20
  Speaker 2: So we're really excited to be able to launch our national brand.
• 42:23
  Speaker 2: Look for us on Fox Sports this weekend and hopefully on Beyond.
• 42:27
  Speaker 2: Good luck to our Val Paraiso University alums as we promote you and hopefully get to promote the brand a little bit too and maybe get some awareness out there as well.
• 42:41
  Speaker 2: Thanks and have a great afternoon.
• 42:43
  Speaker 2: We'll catch you next week, see ya.
• 42:49
  Speaker 1: Thanks for tuning in to Money Matters with Greg.
• 42:51
  Speaker 1: We hope you gained some valuable insights today.
• 42:53
  Speaker 1: Remember, your financial journey is personal, but you don't have to go it alone.
• 42:58
  Speaker 1: If you enjoyed the show, be sure to subscribe and share Until next time.
• 43:02
  Speaker 1: Here's to making your money work for you.
• 43:05
  Speaker 1: Securities and investment advisory services offered through LPL Financial, a registered investment advisor, member FINRA, sipc.