As Duke Sues Its Own QB, NIL Tensions Come To A Head
Dan Etna, co-chair of Herrick's Sports Law Group, spoke to Law360 about a recent lawsuit involving the evolving concept of direct payment deals between athletes and their school regarding name, image and likeness (NIL).
Duke University recently filed a lawsuit against its quarterback to stop him from transferring, underscoring the tension between the NCAA and college athletes driven by "a lack of clarity about how exactly NIL deals between students and schools should function from a legal perspective." At the center of this dispute is the $4 million deal the quarterback signed with the school giving it exclusive rights to market his NIL, and barring him from enrolling at another school for the duration of the deal. According to Duke, the quarterback violated the deal by recently declaring his intention to transfer schools.
Duke's case may be "a prime candidate for monetary relief" meaning it could recoup money if the player is found to have breached the deal. "But merely recovering lost money would not help Duke hang onto its coveted player, and a loss on that front would likely alarm other athletic programs."
Dan suggested that "the case could prompt schools to include provisions that would require the player's new school to buy out his NIL contract for a transfer to occur. Dan further suggested a matching provision that would give schools the right to match or exceed the NIL licensing terms that outside schools give players who enter the transfer portal."
"I would expect that this is going to create a bit of a black eye behind closed doors at the NCAA," Dan said. "They would say, 'We need to rethink this and restart this. If Mensah is allowed to transfer, these contracts should be revised.'"
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