Weekly Column: Why a Shorter Transfer Window May Fix NIL Compliance

In this week’s column, California Sports Lawyer® CEO, Founder, and Managing Attorney Jeremy M. Evans writes about the need for change in NIL and college athletics through limiting the transfer portal to once per year for one time during a college athletes playing time.

Even if dollars continue to push professionalism into college athletics and academics, strenuous academic standards and a one-time transfer policy limitation will help keep a foundation for education in educational institutions.

You can read the full column below. (Past columns can be found, here).

Right now, compliance officers, athletic departments, and collectives are scrambling year-round to process both transfer eligibility and name, image, and likeness (NIL) disclosures. A shorter, single transfer window could align with NIL reporting schedules, creating a more orderly process. By reducing the chaos, universities can focus on vetting deals properly, ensuring that compensation is compliant with school, conference, and state regulations.

In the past, this column has discussed the need for limitations on the transfer window through contract law or policy that forces the college athlete to choose a school or lose the money. Contract and policy requirements help with coaches building rosters. A limited one-time transfer window may also encourage the signing of freshman athletes again, which has fallen with the increase of talent in the transfer portal.

Market clarity will be improved for college athletes, universities, and coaches. More options can be debilitating if one always thinks they can transfer for any reason. Unlimited transfers places the focus on location and greener pastures as opposed to improvising, adapting, and overcoming adversity. In other words, challenges build character.

A limited one-time transfer window will also reduce improper inducements by college athletes and universities from taking money to transfer to another university and athletic team. At least on a numerical basis, inducement could only occur once and it could be monitored more closely for violations. While NIL deals being reviewed by dollar valuation can be subjective and objective, but at least it would be reviewed and audited giving compliance, honesty, and fairness a chance to survive and thrive.

A one-time transfer window will also create fairness and parity among NCAA universities when it comes to recruiting and building rosters. Academically and financially, a one-time transfer policy will help order the legal and regulatory environment. The athlete experience is also exponentially improved because during a limited four-year window for school, college athletes can be focused more on academic and playing for the university that believed in them in the first place.

By comparison, non-student athletes generally only transfer once after their freshman year and meeting rigorous academic requirements. College athletes should not receive more transfer opportunities or expedited processes because a sport is played. Opportunities should be balanced and realistic among all students with academics being the first focus of the athlete and institution.

Having athletes play for one brand will also help the athlete and university in terms of name recognition thus increasing value. It will also help the College Sports Commission and their financial review partners with compliance efforts and reviewing NIL deals. Candidly, transferring more than once during a four-year period, and sometimes a two or three-year period if leaving college early, is too short to allow more than one transfer without substantial justification like threat of harm, psychological, or similar reasoning.

Even if dollars continue to push professionalism into college athletics and academics, strenuous academic standards and a one-time transfer policy limitation will help keep a foundation for education in educational institutions. It will also level the playing field in competitive college athletics.

About Jeremy M. Evans:

Jeremy M. Evans is the Chief Entrepreneur Officer, Founder & Managing Attorney at California Sports Lawyer®, representing entertainment, media, and sports clients in contractual, intellectual property, and dealmaking matters. Evans is an award-winning attorney and industry leader based in Los Angeles and Newport Beach, California. He can be reached at Jeremy@CSLlegal.com. www.CSLlegal.com.