Louisville became the first Division 1 program to instruct its student-athletes to cease all NIL involvement with Barstool Sports.
College athletes throughout the country have sought representation and partnerships to capitalize on their newly-founded NIL rights. However, there has been consistent speculation surrounding the implications of student-athletes agreeing to the Barstool Sports official collegiate athlete program, Barstool Athletics. Barstool launched its own sportsbook in May of this year and has been steadily adding more participating states. Affiliation with a sports betting company is not allowed by NCAA rules and many state laws. Additionally, the compensation plan is unclear between Barstool Athletics and its athletes.
In a message to all Louisville student-athletes, Assistant Athletic Director Alyssa Murphy stated, “Barstool Sports does not comply with University of Louisville policies and it does not comply with the criteria outlined in the Kentucky Governor’s Executive Order.” Many athletic departments have discussed athletes’ involvement with Barstool due to the company being an active sports betting operator. It is reasonable to assume this is the underlying issue in this instance.
At the minimum, it appears student-athletes engaged in NIL activity with Barstool Athletics would be indirectly endorsing Barstool Sportsbook, Barstool’s gambling subsidiary. Kentucky’s Executive Order allows postsecondary educational institutions to establish “reasonable limitations … upon potential agreements or contracts … the institution determines is incompatible or detrimental to the image, purpose, or stated mission of the … institution, such as, but not limited to, the promotion or advertisement of alcohol, tobacco products, firearms or sexually-oriented activities”. The Executive Order does not explicitly list gambling-related activities. Still, it is more than reasonable for a university to consider endorsing a gambling service incompatible with its image.
Barstool attempted to circumvent the threat of their athletes facing ineligibility by filing intent-to-use trademark applications to register the Barstool Athletics brand specifically for managing athletes. The trademark would help create a more defined distinction between Barstool Athletics and Barstool Sportsbook. But, there remains the question of whether gambling implications permeate between the two brands that would indicate signed athletes would technically be endorsing activities detrimental to their school’s image.
The compensatory arrangement offered through Barstool Athletics may be a red flag as well. The NCAA’s interim NIL policy states, “While opening NIL activities to student-athletes, the policy leaves in place the commitment to avoid pay-for-play and improper inducements tied to choosing to attend a particular school. Those prohibitions would remain in effect.” Athletes face losing eligibility for engaging in a deal deemed not of fair market value, depending on the relevant state legislation. This policy makes it impermissible for student-athletes to participate in an agreement where they are compensated for simply being a part of a brand. The athlete must provide a fair market value service in return, which is the potential flaw in the Barstool Athletics program. Barstool publicly stated they would send all of their athletes free merch, and the athlete is explicitly required to add “Barstool Athlete” social media bios. Declaring yourself as a “Barstool Athlete” may not carry the adequate value needed to be considered fair market value for the exchange.
The market for representing collegiate athletes and their name, image, and likeness has exploded since such activity became permitted on July 1st. Barstool has established itself as one of the most recognizable brands on college campuses. However, the substantial possibility of losing eligibility to participate in college athletics is still a risk at this point. There are too many unknowns still with NIL activity and legislation to definitively decide if the relationship between athletes, Barstool Athletics, and Barstool Sportsbook constitute a violation against school policies or state legislation. Louisville was proactive in guiding its athletes to stay away from the Barstool Athletics program. With the debate ongoing, Louisville’s initiative may be the first domino in many schools following its lead.
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