Gophers boosters must come through — collectively speaking — or program will be left behind

'Collectives' typically led by well-funded boosters are facilitating financial deals in the new era of name, image and likeness payments to college athletes. The Gophers need one.

April 18, 2022 at 12:16PM
FILE - In this April 24, 2021, file photo, Texas defenders Jake Ehlinger, left, and B.J. Foster, right, tackle Kayvontay Dixon (16) during the first half of the Orange and White spring scrimmage college football game in Austin, Texas. Ehlinger, the younger brother of former Longhorns quarterback Sam Ehlinger, was found dead near campus Thursday, May 6, Austin police said. Officers found the 20-year-old Ehlinger after responding to a call at 12:18 p.m. Police did not detail how they found him but said the death is not considered suspicious. No cause of death was immediately released. (AP Photo/Michael Thomas, File)
The Texas Longhorns are into the collective business with a group that promises $50,000 to each scholarship athlete each year for making charitable appearances. (Michael Thomas, Associated Press/The Minnesota Star Tribune)

HELP WANTED: Individual, group of people or company to serve as a third-party entity known as a "collective" that facilitates sponsorship and marketing opportunities for University of Minnesota athletes under name, image and likeness (NIL) provisions allowed by the NCAA. Oh, and do it fast. This train is barreling down the track.

Anyone interested? Because it's necessary to the future of Gophers athletics. Do it or get left behind in the brave, new NIL world.

The university is not permitted to handle NIL deals for athletes. That job is increasingly being outsourced to collectives, a term that fans should get familiar with because collectives are popping up around the country by the week and securing endorsement deals and other moneymaking opportunities for college athletes.

The Gophers need one.

Collectives typically are formed by boosters and supporters of programs. They act independently of the athletic department, though compliance offices provide education in explaining NIL rules and what forms of income opportunities will be deemed permissible.

Nearly 40 schools have at least one collective, and industry experts expect that all Power Five schools will have one by the end of the year. A few schools already have multiple collectives.

Why is everything unfolding so quickly? Recruiting, as always, and the pressure to keep up with rivals.

The NCAA prohibits using NIL as enticements in recruiting (wink, wink), but surprise, that's a rule being ignored.

One Division I coach told me that recruits are asking about NIL opportunities and whether the school has a collective. It's become part of the courtship between coach and player, particularly with transfers in the portal who might either have NIL options at their current school or are shopping for the most lucrative opportunity when choosing a new school.

This is the new reality of college sports. People might not like this new reality or the direction that things are headed, but NIL is here to stay.

Athletes are making money off their success and popularity — rightfully so — and schools realize that NIL has become a fundamental part of selling their programs. Boosters everywhere are rushing to form collectives in what has been referred to as the "wild, wild West."

The Athletic reported in March that a five-star football recruit in the Class of 2023 signed a deal with an NIL collective that could be worth $8 million over three years. The website didn't name the recruit or collective in exchange for access to review the contract.

One University of Texas collective will give every Longhorns offensive lineman on scholarship $50,000 annually to make charitable appearances.

Those represent extreme NIL cases of earning potential — and apparently are legal — but they provide a snapshot of different ways that collectives are funneling money to athletes. Most NIL deals are much smaller in scope and compensate athletes for sponsorships, fan appearances, autograph signings, social media posts, hosting camps, etc.

Many of the collectives operate like a traditional marketing agency that facilitates endorsement opportunities. There are also collectives in which boosters pool money and then disburse it to athletes in exchange for tasks that are typically tied to charity work. That model makes Gophers officials uneasy because it drifts too closely to pay-for-play incentives.

The university created its own NIL policy because, unlike some states, Minnesota does not have NIL laws on the books. Gophers athletes must disclose NIL deals to the school for approval.

The Star Tribune reported in December that Gophers athletes signed 150 NIL deals between July 1 and Nov. 8. A collective likely would expand that pool.

A handful of people have initiated discussions with university officials about forming a collective. Erick Kriewaldt, a finance major in the Carlson School of Management, is attempting to get a collective off the ground (called MinnesotaNIL) but is finding a big hurdle in the path: Starting a collective that will survive and prosper generally requires a lot of cash.

That's why many collectives are backed by well-connected, well-funded boosters. One of the creators of Oregon's collective is Phil Knight, billionaire founder of a little business called Nike.

Those who work in college athletics say NIL collectives are a must, not a luxury. It's another tentacle in the arms race, and as with anything, taking a pass isn't really an option.

about the writer

about the writer

Chip Scoggins

Columnist

Chip Scoggins is a sports columnist and enterprise writer for the Minnesota Star Tribune. He has worked at the Minnesota Star Tribune since 2000 and previously covered the Vikings, Gophers football, Wild, Wolves and high school sports.

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