The NCAA on Monday released updated ‘guidance’ to member institutions regarding third party involvement in name, image, and likeness deals. SI’s Ross Dellenger obtained a copy of the memo sent to NCAA schools.
This has prompted some questions in the NIL space from those that have joined Garnet Trust or are thinking about joining. Here, we’ll answer a couple key questions.
What does this news mean for Garnet Trust?
In short, nothing will change – or needs to change – with how Garnet Trust operates.
All Garnet Trust deals are contracted per state of South Carolina law, University of South Carolina NIL policy, and the NCAA’s previously released interim policy.
Garnet Trust does not recruit prospective student-athletes.
All deals have a clear exchange of value/service – a quid pro quo.
Athletes are issued W9 tax forms with each agreement, and 1099 tax forms are sent on an individual basis if the IRS threshold is reached.
No prospective student-athletes (i.e. prospects being recruited by the University of South Carolina from high school, junior college, or the transfer portal) have been contacted by Garnet Trust regarding a NIL agreement prior to their signing and/or enrollment at the University of South Carolina.
Garnet Trust has also released multiple financial reports in the past for transparency.
Is it safe for me as a fan or booster to jofin/stay a member of Garnet Trust?
Yes. The NCAA’s guidance reiterated what has always been the case – that boosters cannot be involved in the recruitments of prospective student-athletes. The NCAA defines prospective student-athletes as a prospect who is: a) in the ninth through twelfth grade; b) is in junior college; c) is at a four-year college and in the transfer portal.
Boosters are actually permitted to create or facilitate NIL opportunities for student-athletes, provided they are not recruiting inducements or an inducement for an athlete to remain enrolled.
Beyond that, Garnet Trust operates as a membership-based platform with unique tiers. All members receive benefits and deliverables in exchange for their subscription fees.
Questions? Email us: info(at)GarnetTrust.com.
*** About Garnet Trust
Garnet Trust is a membership platform that connects University of South Carolina fans and student-athletes through legal and compliant NIL deals.