Miami Hurricanes Booster John Ruiz Speaks on the Future of NIL and Collectives
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This year has been a whirlwind for the college sports landscape. For the past seven or eight months, transfers, NIL deals, and allegations of foul play have dominated the news. Through these channels, boosters and their associated donors (now known as collectives) have gained quite a bit of notoriety.
One such booster is LifeWallet founder and CEO John Ruiz, a billionaire benefactor of the University of Miami. Ruiz has reportedly signed over 100 athletes to NIL deals totaling over $7 million, but he says it may be time to turn down the volume on future endorsements.
“Next year, it becomes standard,” Ruiz told Sports Illustrated. He also indicated he may not be so keen to sign as many agreements in the future, “People pay less attention, so you get less return on your investment.”
It’s a statement that a lot of people in the realm of collegiate athletics have echoed. After the initial freshness and excitement sparked a virtual feeding frenzy, many believe that the market value for these players will begin to settle out very quickly.
“The irrational passion of college sports is feeding this NIL beast,” says Opendorse CEO Blake Lawrence. Opendorse operates as a sort of “job portal” for college athletes.
Instead of looking for 9-to-5’s though, they’re surfing the latest available endorsement deals which they can then apply for. It’s a free-for-all but most experts involved in the NIL business seem to believe that the bubble is set to burst, at least a little bit.
Still, this football season will give a lot of context to exactly what these endorsements are buying. If the big spenders like Miami and USC do well, then the trend may very well continue. If not, then programs may reevaluate this strategy’s effectiveness and focus alternative needs.
“Do we want a new weight room, or do we want to spend it on a 17-year-old who may or may not pan out?” quipped Greg McElroy, the former Alabama quarterback who is now an ESPN analyst.
In any case, more rules and regulations will inevitably be handed down by the almighty NCAA to curtail any more public scrutiny. Only time will tell if they’ll be minor changes or a complete overhaul of the system. The days of college athletes getting compensated are here to stay, but the massive million-dollar deals may already be a thing of the past.
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