How can Nico demand more money from Tennessee if the rules of NIL say that the money comes from outside sources and in order to maintain their tax exempt status, colleges are not allowed to directly pay their athletes. But i read articles that say the NIL deal is between him and Tennessee, so i am confused. Do colleges pay sudents directly? or do they just funnel outside money from funders to the athletes? How does it work exactly?
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Because he can transfer if he doesn’t get what he wants….it’s that simple. So while the school doesn’t pay him directly it’s in their interest to facilitate payments one way or another. Well not for him specifically cause he wasn’t worth it but if they are. It’s a system that needs reform.
It’s done through boosters. Funding for these sports programs is separate from the schools actual budget. They make their own money and then spend it within the program. The outside boosters set up a fund and donate money that is allocated for NIL. When they say they’re negotiating hire pay from the school it’s through the schools NIL collective.