Profound Sports to Offer Advisory for Potential NIL Backpay Settlement

With a potential payout on the way for former college athletes from the House v NCAA proposed settlement Profound Sports is working to ensure athletes receive their fair share

Mar 17, 2023; Columbus, OH, USA; Vermont Catamounts guard Finn Sullivan (15) controls the ball defended by Marquette Golden Eagles guard Kam Jones (1) at Nationwide Arena. Mandatory Credit: Joseph Maiorana-USA TODAY Sports / Joseph Maiorana-USA TODAY Sports

House v NCAA is positioned to change the landscape of college sports. The landmark litigation has reached a proposed settlement and is pending judicial approval. The settlement would fundamentally alter NIL Collectives, NIL disclosure requirements, and revenue allocation in college sports if approved. In addition to these forward-facing changes, the NCAA and its member institutions have agreed to pay nearly $2,600,000,000 in NIL backpay damages to scholarship Division I athletes who played between 2016 and 2023. NIL agency Profound Sports has quickly jumped at the opportunity to help athletes navigate the claims process. 

Within the settlement is a significant variance of payout primarily based on sport played and conference affiliation –– my recent article dives into the nitty gritty of the calculations. For athletes who did not play revenue sports (football or basketball), payouts are reduced to lost NIL opportunities and limited “Pay-for-play” allocations estimated to net $50. Power 5 baseball players and certain revenue athletes outside of the Power 5 will be able to submit claims for additional compensation due to the notoriety of their sport. For example, Big East Basketball players will be able to submit claims that are estimated to net over $10,000 between broadcast NIL payment (BNIL), video game royalties, and lost NIL opportunities.

For Power 5 revenue athletes, these payouts are exponentially higher and more streamlined. BNIL and video game royalties for these athletes are already calculated and do not require these players to submit compensation claims. For male athletes, these two categories carry serious compensation, ranging between $15,300 - $284,000 based on sport, conference, performance metrics, and years of athletic service. For Power 5 women’s basketball players, these payouts will average $23,000 and range between $3,000 - $52,000. 

Lost NIL opportunities are also available for Power 5 revenue athletes; however, these will require a claim to be submitted. This is where Profound Sports comes in. The settlement proposal estimates roughly $17,000 for every Power 5 athlete who submits a claim for lost NIL opportunities, with a range between $1 - $800,000 based on the NIL value athletes can demonstrate. Profound Sports offers consulting and expertise from NIL agents regarding claim submission to help athletes prove NIL value with the belief that this service could yield significant increases in an athlete’s payout –– a 15% contingency fee for this service will be deducted from the lost NIL opportunity payment. Profound is also working towards donating some of its proceeds to collectives and athletic departments participating in a claims filing partnership.

Exceptional non-Power 5 revenue athletes who played before the NCAA rule change in 2021 can also submit lost NIL opportunity claims. The settlement has projected that 6,000 athletes will be able to file successful claims in this category, with payouts ranging between $1 and $1,859,000 based on notoriety. 

Beyond offering claim consulting services, Profound Sports has leveraged its connections to provide its clients with a unique opportunity to earn cash now. The settlement proposal is positioned to pay athletes in annual installments for ten years: for the average Power 5 revenue athlete, a ballpark sum of $10,000 would come in once a year for ten years. Profound Sports has the ability to connect its clients with private equity partners willing to acquire their ten-year NIL backpay rights for upfront cash. Now, this option would come with a reduction in total payout for athletes –– but this is an attractive option for those in the plaintiff class who could benefit from cash now or would instead grow their compensation through other investment vehicles like a down payment on a home. 

Profound Sports is prepared to fight initial BNIL and video game settlement offerings for its clients. While not advising those receiving compensation to opt out of the agreement, Profound Sports believes that its representatives will have the leverage to increase settlement offers for its clients in these compensation pools while remaining in the class action settlement. It is indeterminate if the court will recognize any advocacy in these payment categories, but Profound is willing to try. The company will only charge athletes a fee if a material increase in payment is actualized. Those interested in learning more about Profound Sport’s services can visit their claimant portal here.

Many will scramble to navigate unchartered waters if the House v. NCAA settlement proposal is approved. With $89,500,000 of the $1,976,000,000 compensation pool up for grabs in the lost NIL opportunities claims process, former athletes will be incentivized to prove that money is rightfully theirs.