NEWNow you can listen to Pak Gazette articles!
The CSC in a statement said the arbitrator upheld the commission’s decision to reject third-party NIL agreements between Nebraska’s multimedia rights (MMR) partner, Playfly, and the players.
At issue was whether Nebraska’s MMR partner would be considered an “associated entity,” agreements whose agreements are subject to CSC scrutiny.
Once this was decided, the CSC said the arbitrator rejected the agreements because:
— They lacked what the CSC calls a “valid commercial purpose” because they did not include goods or services offered to the general public for profit.
— Playfly violated a rule that prohibited “stockpiling” NIL rights, that is, paying for the rights to use them for some later purpose instead of using them immediately.
Speaking to media at the Atlantic Coast Conference meetings in Florida, CSC Executive Director Bryan Seeley said he did not consider the agreement to set a precedent.
“Even if it’s not precedent, the fact is that it influences, and it influences people’s minds on how they think about law enforcement,” he said. “So it was a good day for me.”
Nebraska Cornhuskers wide receiver Jacory Barney Jr (2) and tight end Luke Lindenmeyer (44) celebrate a touchdown during the SRS Distribution Las Vegas Bowl featuring the Nebraska Cornhuskers against the Utah Utes. (Photo by Steve Nurenberg/Icon Sportswire via Getty Images)
The CSC said it would publish the arbitrator’s full decision later.
Some observers are curious to see whether the university or state will sue over the decision, something the CSC hoped to avoid when it sent a “participation agreement” for schools to sign that prohibited them from suing the commission.
Many schools have been reluctant to sign the agreement, arguing that state laws do not allow them to give up their ability to take legal action.
“The question of whether your state attorney general challenges it in court and what the outcome of that is, I think is the real test of whether this (CSC) is a legitimate governing body,” sports attorney Paia LaPalombara told The Associated Press in an interview last week about the Nebraska case.
Acknowledging the decision, Nebraska AD Troy Dannen said the school would continue to operate under the CSC process “while monitoring changes in the university landscape.”
[Can Michigan Get Revenge Against Oklahoma? Bold Predictions From FOX’s Saturday Slate]
“We fully support all of our student-athletes in maximizing the value of their name, image and likeness during their time at the University of Nebraska,” he said.
Officials with the Nebraska attorney general’s office did not immediately respond to emails from the AP.
Seeley still believes there are ways for Nebraska players to get paid within the rules.
“I don’t think litigation is necessary for these student-athletes to get money for their NIL,” he said. “However, I can’t control what happens outside of what we do.”
In a separate case pending in federal court that approved NIL payments through the House settlement, attorneys argue that MMR partners should not be considered “associated entities.” A hearing in that case is scheduled for May 27.
Information from The Associated Press.
