Houston's $1 million NIL gamble worth the payoff: "You are crazy not to take it"
Kelvin Sampson has always been known for taking calculated risks throughout his career. However, one of his recent ventures may be among the most precarious yet: a commitment to participate in the Players Era Festival, a startup college basketball multi-team event (MTE) with a proposition that sounds almost too good to be true. Sampson's decision to engage in this endeavor is rooted in the growing influence of Name, Image, and Likeness (NIL) agreements in college sports, where Players Era promises a million dollars in NIL compensation for each participating school over three consecutive years.
The inception of Players Era came about when Seth Berger, co-founder of And1, and Ian Orefice, head of EverWonder Studio, pitched the idea to the Houston men's basketball team. The proposal of an MTE offering NIL money to participating schools was an immediate head-turner, especially for a coach like Sampson, who has had his fair share of challenges navigating NCAA compliance throughout his career. Berger’s ties to the world of sports business and media added credibility to the offer, as EverWonder is backed by RedBird IMI, a private equity firm led by notable names like Jeff Zucker, the former head of NBC Universal and CNN.
Sampson, a veteran of college basketball’s cutthroat recruiting landscape, approached the situation with caution. He wanted to ensure that the NIL deal offered by Players Era was legitimate and compliant with NCAA regulations. In an era where coaches are not just tasked with X's and O's but must also navigate complex financial arrangements for their players, Sampson’s role had expanded far beyond the court. His skepticism was warranted, considering the unconventional nature of Players Era’s business model. Traditionally, college basketball tournaments generate far less than the $8 million Players Era promised in NIL commitments.
“Updates in August are never a good thing,” Sampson told Sportico. “The hay should have been in the barn with a lock on the door. You don’t work on your MTE schedule in the middle of August. But this deal, for NIL purposes, for being able to go through an avenue that doesn’t require donor participation, where you don’t have to tax your fan base, we have to do things like this. Sometimes you have to pay your own bills.”
The inaugural event is scheduled for Nov. 26-30, 2024, at the MGM Grand Garden Arena in Las Vegas, where Houston will play against high-profile teams like Alabama, Notre Dame, and Rutgers. In total, eight teams are participating, including powerhouses like Oregon, Texas A&M, and Creighton. Despite some initial reservations, Houston was the first school to commit to the tournament, while Creighton followed, albeit after bailing on the prestigious Battle 4 Atlantis. The allure of significant NIL money, which doesn’t come from the usual donor and booster sources, was a major factor for many coaches, including Creighton’s Greg McDermott, who saw it as a valuable opportunity.
Sampson first learned about the Players Era through his longtime acquaintance Steve Rosenberry, a veteran NBA scout. When Rosenberry approached him with the offer of $1 million in NIL money per school, plus coverage of travel and hotel expenses, Sampson thought it sounded almost too good to be true. Nevertheless, the tournament’s promise of significant financial compensation pushed Houston to engage further, with Sampson and his team eventually signing an agreement with EverWonder Studios.
The skepticism surrounding the financial viability of Players Era wasn’t limited to Houston. Some schools viewed the arrangement as a potential compliance issue, with their compliance officers raising concerns about the legality of the NIL structure. The NCAA has clear rules prohibiting direct compensation for participation in events, which added to the uncertainty surrounding Players Era’s NIL offer. Still, the opportunity to participate in a high-profile event while securing NIL money was too tempting for schools like Houston, who were looking for innovative ways to provide for their athletes.
“My ideal [way] of balancing our schedule was not to add Alabama, Rutgers and Notre Dame,” Sampson said, referring to his Players Era opponents. “I am not sure I would have done that except for the NIL thing and the consistency of it, where it is every year. An opportunity to be in this tournament to get the money they are talking about? You are crazy not to take it.”
Sampson’s history with the NCAA adds another layer of complexity to his involvement in the tournament. In 2008, he was issued a five-year coaching ban for violating NCAA recruiting rules while at Indiana, following earlier sanctions during his tenure at Oklahoma. These violations have made Sampson particularly sensitive to compliance issues, as his current contract with Houston includes strict prohibitions on violating NCAA rules.
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Yet, Sampson’s willingness to participate in the Players Era Festival reflects the evolving nature of college sports. The introduction of NIL deals has forced coaches to think beyond the traditional boundaries of recruiting and game strategy, as they now have to navigate an entirely new financial ecosystem. The Players Era, as its name suggests, represents a shift in college athletics, where student-athletes have more control over their financial opportunities.
Houston’s move to the Big 12 conference adds to the stakes for Sampson. The Cougars face a tough schedule, with conference opponents like Kansas, Baylor, and Texas Tech, but the opportunity to add high-profile non-conference games against Alabama, Rutgers, and Notre Dame through the Players Era was a strategic move to bolster their competitiveness.
“I have no choice but to be confident,” Sampson said. “My door is closed. I am two feet in. We are planning to go to Vegas Thanksgiving week and play the University of Alabama that Tuesday.”
As of now, the Players Era Festival is set to go ahead, though questions about its compliance with NCAA rules remain. Sampson, however, remains confident that the tournament will come to fruition and deliver on its promises. Despite the challenges and uncertainties, he has committed fully to the event, knowing that the potential rewards in terms of NIL money for his players are significant. Ultimately, the Players Era Festival represents the new reality of college sports, where coaches like Sampson must adapt to a rapidly changing landscape or risk being left behind.
