Thought this was interesting from On3.
Schools can send prospects rev-share contracts on Aug. 1, but some are choosing not to do it so the player can’t use it to shop for a bigger deal.
Why some top programs are holding rev-share contracts for recruits: 'It’s not smart'
Pete Nakos
For the first time in the history of college athletics, beginning Friday, college football programs and athletic departments
can offer written revenue-sharing contracts to high school recruits. After years of the NCAA trying to bar pay-for-play payments, schools can now show a top recruit the contract they will sign.
It’s a new era in high school recruiting. According to the NCAA, the
offers related to NIL payments are only allowed to be sent to recruits entering their senior year of high school. The contracts are not allowed to be signed until the athletes’ applicable signing dates.
But as some programs send out offers on Friday, multiple prominent schools are sitting on the sidelines, sources have told On3. General managers have made the decision to hold off on sending out a full written contract for fear that the deals will just be shopped around in the lead-up to National Signing Day.
“They can’t sign anything until December, so there’s really no point,” one Power Four general manager told On3. “People would be dumb to do it.”
That school has structured NIL collective contracts to morph into rev-sharing deals. Another Power Four general manager outlined to On3 how their school is in “wait-and-see mode.” The GM told On3 that the contracts will only be used against the program.
“We have them prepared, but we are in wait-and-see mode,” the source said. “I just don’t see the need and feel like they can be used against us. Most of our recruits, families and agents have seen at least the format and structure of our agreement.
“It’s not smart.”
Part of the reason schools are confident they do not need to send out rev-share contracts is the conversations held during official visits. June has traditionally been when athletes visit campuses and spend time with coaching staffs. But in recent years, the traditional official visit has turned into an opportunity for families, athletes and agents to sit down with programs to talk financials.
Some programs have already sent out full contracts with compensation to agents before the start date, but forward-dated the agreement to Aug. 1 or later. The chance to send contracts out to high school athletes comes only a month after college athletes could start signing rev-share deals. On3 has learned of at least one Power Four program still sorting through rev-share contract revisions with training camp underway.
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“The price in August is not going to be what it is in November or December,” another source said. “Especially when flip season comes around.”
Other schools have stayed away from offering any form of compensation or a contract until Aug. 1.
Auburn athletic director
John Cohen recently said that the Tigers’ understanding is that any offer made to an athlete before Aug. 1 is only verbal. He also went on to say that a third-party NIL offer guaranteed to a recruit by a university would go against the $20.5 million revenue-sharing cap.
But that is not how other schools see it. As On3 previously reported, some schools are opting to pay recruits monthly before even walking on campus.
Georgia head coach
Kirby Smart highlighted at the SEC spring meetings how
third-party NIL collectives are paying high school recruits.
Sources have told On3 that some top recruits are earning anywhere between $5,000 to $25,000 on a monthly basis. Some programs have made the decision not to enter the game, waiting on the sidelines until Aug. 1 to offer deals.
“There’s some really new things on the horizon that have never happened before,” Cohen previously said. “And I’m here to tell you, we’re going to do this the right way. We’re going to do it just like Coach (Hugh) Freeze just mentioned — we’re going to be honest, we’re going to be forthright and we’re looking very much forward to Aug. 1 and dates beyond.”