FAQ

FREQUENTLY ASKED QUESTIONS

WHAT IS NIL?

NIL stands for “Name, Image, and Likeness” specifically referring to the use of an athlete’s NIL through marketing and promotional endeavors. Student-athletes at NCAA institutions could begin monetizing their NIL beginning on July 1, 2021.

WHAT ARE THE NCAA RULES REGARDING NIL?

Generally speaking, all NIL activities are permitted, as they follow these four guidelines:

  • There must be quid pro quo attached to an NIL deal essentially requiring a student-athlete to do an activity in order to receive compensation.
  • That activity cannot be tied to athletic performance such as statistical achievements, wins, or awards.
  • That activity cannot be contingent upon the student-athlete committing to the university that the collective supports or tied to enrollment.
  • Institutions do not provide compensation in exchange for the use of a student-athlete’s NIL.

NCAA rules also require student-athletes to follow their state law or institutional policy if there is no existing state law governing NIL activities.

WHAT IS AN NIL ACTIVITY?

An NIL activity involves the use of a student-athlete’s name, image, or likeness for promotional purposes by a third-party not associated with the NCAA or an NCAA institution such as:

  • Social media influencing and other promotions
  • Personal appearances at businesses, conferences, camps, parties
  • TV ads, radio ads, print ads
  • Endorsements of a third-party
  • Student-athlete-run camps and private lessons
  • Autographs
  • Sale of student-athlete owned apparel and personal items
  • Student-athlete run businesses
WHO DOES THE SPIDERS’ COLLECTIVE WORK WITH?

The Spiders’ Collective works with student-athletes from the University of Richmond.

HOW WILL PAYMENTS BE MADE TO THE PLAYERS?

The Spiders’ Collective utilizes Opendorse, the leading operating software provider for collectives. This software allows student-athletes the ability to provide compliance reporting to Richmond which can be accessed by the athletic department and to the NCAA (if requested) as well as serves as the way to distribute funds to student-athletes after they have completed their NIL obligation.

DOES VIRGINIA HAVE AN NIL STATE LAW?
DOES RICHMOND HAVE AN NIL POLICY?

Yes – Richmond has a Name, Image and Likeness policy

IS THE SPIDERS’ COLLECTIVE AN ENTITY OF THE UNIVERSITY OF RICHMOND?

No – The Spiders’ Collective is a third-party entity that is unaffiliated with the University of Richmond.

HOW WILL THE SPIDERS’ COLLECTIVE BE GOVERNED AND ADMINISTERED?
  • The Spiders’ Collective has an Advisory Board whose purpose will be to organize the entity, raise funds, and review and ratify annual audits.
  • The Advisory Board has engaged FirstTeam Sports Consulting to administer the Opendorse account, manage the accounting for the fund, support the annual audit, as well as manage public relations.
  • The Advisory Board will not be paid by The Spiders’ Collective for ANY purpose in furtherance of the NIL activities.
ARE CONTRACTS WITH STUDENT-ATHLETES EXCLUSIVE?

No – our agreements are intentionally non-exclusive to enable student-athletes to continue to build their brand with opportunities outside of The Spiders’ Collective.

WHAT PERCENTAGE OF CONTRIBUTIONS GO TO THE ATHLETES?

We strive to keep our operating costs as low as possible so that 90% of the contributions can be paid out to student-athletes. Any remaining funds will be used to cover fundraising expenses, deal facilitation, and various administrative expenses.

DOES THE SPIDERS’ COLLECTIVE WORK WITH RECRUITS OR PROSPECTIVE STUDENT-ATHLETES?

No – In compliance with NIL regulations, The Spiders’ Collective will not meet with, contact, offer a deal, etc. to any prospective student-athlete. Until a student-athlete has signed their NLI and/or the institution has received a deposit of financial aid, they will not be contacted by The Spiders’ Collective.

IS MY CONTRIBUTION TAX DEDUCTIBLE?

The Spiders’ Collective is a registered LLC and, as such, contributions are not tax deductible.

For further questions, please contact us.