What is NIL?
College student-athletes can now sign endorsement deals with third-party companies and collectives to engage in promotional activities on behalf of these outside groups for a fee. However there are some rules in place:
1. No pay for play. A student-athlete may not receive money simply for participating in their sport nor can they receive contract incentives based on their athletic performance (for example, cash for touchdowns)
2. Quid pro quo. A student-athlete must complete some type of NIL task in order to receive compensation (endorsements, autographs, public appearances, etc.). NCAA extra benefit rules (receiving something for nothing), still apply and a student-athlete’s eligibility could be jeopardized if they accept extra benefits.
3. No inducement during the recruiting process. An institution may not use NIL money or potential contracts as an inducement to attend an institution (such as a player being promised $200k by a coach should they sign with the university). Institutions are permitted to provide information regarding current student-athlete deals, and NIL efforts of the institution and Collective, but may not promise NIL compensation.
Why are we not going through the Athletic Department?
While the athletic department does have their own collective, Lacrosse has no say in the way it is used. By creating our own, we control how the money is distributed.
Is this different than Laxbackers?
Yes. We fully support Laxbackers. In fact, many Laxbacker members will be serving on the board for the Silverback Collective. Continue to give to that as it also supports the program. However, Laxbackers cannot engage in NIL. So we needed to create a different entity to enable that participation.
What is the goal of the Silverback Collective?
Our objective is to raise $500k in available capital to continue to support the growth of our program. We will raise this money into a capital call structure. Is my pledge tax deductible?
No, unlike Laxbackers, we cannot use NIL in a tax deductible way. Viceaversa, we cannot use Laxbackers for NIL.
What is a capital call structure?
A capital call structure means that every donor pledges an amount to the Silverback collective by signing a contract. The Silverback Collective will then “call” a certain amount of money each year to use for the Men’s Lacrosse program.
What is the annual limit for the capital call structure?
We will limit the capital calls to 10% of the total pool raised. A quick example, if we raise $500k we will never be able to invest more than $50k on an annual basis.
If I pledge $10,000, how much will be called each year?
No more than 20% of the total pool can be called in a given year. So if you pledge $10,000, you will never pay more than $2,000 on any annual capital call. The only way you would pay more is if you pledge more. In fact, as the Silverback collective gets more pledges, the total pool goes up and your annual call will go down.
How will you decide how to use the money each year?
Our board of directors will work collaboratively with the UMass coaches to ensure the money is invested into the program in the right way. All annual capital calls require a majority vote from the board of directors.
If I pledge, will athletes support a company or brand?
Yes, but the best option is to go directly to players. We can help you do that.
What if a player gets an NIL contract and leaves UMass?
All contracts with the players will be executed on an annual basis to ensure the focus on UMass Men’s Lacrosse.
If I own a business and want to work directly with a player, will the Collective help me identify the appropriate player and structure a contract? Yes! You can hire the collective the investment vehicle for player engagement. The Collective’s board intends to work proactively with businesses to drive as much support as possible to the program.
Does the collective take any administrative fees?
Yes, but only to operate the LLC and file taxes. No money is used in any other way.
The Silverback Collective LLC 