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Nebraska athletes lose NIL bid worth millions in CSC arbitration battle
TL;DR
A third-party arbitrator ruled against 18 Nebraska athletes in their NIL bid worth millions, stating that their proposals lacked clear market justification. The decision is final and binding, but athletes can submit revised deals for review.
Key points
- Arbitrator ruled against Nebraska athletes' NIL proposals
- Ruling stated proposals lacked clear market justification
- Decision is final and binding with no option to appeal
- Athletes can submit revised NIL deals for CSC review
Mentioned in this story
College Sports CommissionHusch BlackwellPlayFly
Nebraska Cornhuskers
An arbitration ruling sent a clear message Monday: NIL deals that push boundaries without clear market justification won’t move forward.
On May 11, a third-party arbitrator ruled the College Sports Commission properly applied the rules and parameters of the House settlement in deal proposals involving University of Nebraska athletes and the school’s multimedia rights partner, PlayFly.
The 18 Nebraska athletes had retained the legal services of national firm Husch Blackwell as they fought to have their NIL proposals granted, which had been valued in the millions according to multiple reports and people familiar with the Cornhuskers' case.
The arbitrator’s ruling is a “final, binding decision” that does not leave an option to appeal. However, the Nebraska athletes may “submit revised third-party NIL deals that comply with the rules for the CSC’s review.”
CSC revealed the arbitrator’s judgment in a late-afternoon release.
“We are pleased with the arbitrator’s decision to affirm the CSC’s fact-based application of the rules,” CSC CEO Bryan Seeley said in a statement obtained by USA TODAY Sports. “This process shows the system is working as intended: a decision we made was challenged and a neutral arbitrator assessed the facts to inform a final decision.
“We hope and expect that the student-athletes will submit new deals that comply with the rules, so we can promptly review them.”
While the overall ruling is a win for the CSC, the arbitrator did not rule for either party on the actual rates of payment for the Nebraska student-athletes. The absence of tangible NIL plans precluded the arbitrator from determining if the proposed rates were in line with fair-market value.
The CSC noted in its release not only had the third-party arbitrator ruled in support of the group’s application of rules for vetting third-party NIL deals but that it also found the proposed deals between PlayFly and Nebraska had a “lack of a valid business purpose” and also represented “a violation of the rule against warehousing NIL rights.”
PlayFly was deemed an “associated entity” for Nebraska in a case that had been monitored closely by other institutions and their MMR partners such as JMI Sports and Learfield, in addition to PlayFly.
Q&A
What was the outcome of the Nebraska athletes' NIL arbitration case?
The arbitration ruling denied the NIL proposals of 18 Nebraska athletes, stating they did not meet market justification requirements.
Who represented the Nebraska athletes in their NIL arbitration?
The Nebraska athletes were represented by the national law firm Husch Blackwell during the arbitration process.
What can Nebraska athletes do after the arbitration ruling?
The athletes can submit revised third-party NIL deals that comply with the rules for review by the College Sports Commission.
What is the significance of the arbitration ruling for NIL deals?
The ruling emphasizes that NIL deals must have clear market justification, setting a precedent for future proposals in college sports.
