First, thanks for getting this going, as I believe NIL crowdfunding will be essential for competitiveness, although it does have to be done right. That said:
1) who owns Garnet Trust LLC?
2) is the ownership committed to no net income (ie maximizing money to athletes)?
3) if not, what kind of net margin are they shooting for?
4) how much compensation will be paid and to whom? (Ie before net income)
5) any royalties or other ways of siphoning off money to non-athletes?
6) will the ownership commit to complete transparency where the dollars go?
7) how will decisions on NIL expenditures be decided?
8) any thoughts yet on whether to concentrate funds on specific players, position groups, particular classes, starters, two deep, scholarship players, the whole roster?
9) are there any actual regulations on this stuff yet?
Fantastic questions here, thanks for asking. Some of this is covered in the website's
FAQ, too, but I can expand on all of it.
1) Brian Shoemaker is the technical owner of Garnet Trust, just like he's the owner of GamecockCentral.com
2-6) No, the organization has not expressed a commitment to no net income. A place that Garnet Trust could actually make some money is in the business arm - production, consulting, placement for businesses looking to do NIL deals. Absolutely none of that takes money out of the hands of players, however, because that's separate and apart from any funds that businesses may give players for their endorsements and/or services.
Staffers and owners of non-profits make salaries, and maybe that happens one day. Right now, nobody involved is being paid.
Some funds are going to have to be held in reserve for later NIL deals, but those will be earmarked.
Garnet Trust isn't looking to create value as a company and sell, or anything like that. There are three places that money that goes into the organization could go- players (the vast majority), operational costs, and maybe depending on how things go, there could be stipends or salaries for staffers. Perhaps the organization hires someone - which Garnet Trust hasn't had to do yet. Our costs have been incredibly low, which is why we're already creating deals for players just days in.
The organization is definitely looking to maximize student-athlete funds. Right now, 100% of business payments go straight to athletes (Garnet Trust can make money off media services as I stated). 80-90 of crowdfunded dollars are being marked for student-athletes, with the rest going to operational costs. That percentage could adjust over time based on strategy - the goal is to maximize dollars for student-athletes and not necessarily just maximize the percentage.
The organization is discussing how and when to disclose certain things for transparency's sake, also bearing in mind the privacy of student-athletes. We'll get to that point.
7-8) Garnet Trust is going to make the choices on the crowfunded end - largely - on where funds go, although supporters can have significant input.
We've already had conversations with some supporters about specific initiatives those folks would like to fund. On the business end, businesses will approach with certain student-athletes they would like to work with on projects.
The answer to your question in #8 is: yes, haha. I anticipate we'll see deals with individuals, maybe whole teams one day, etc. It really depends on how much the organization brings in. The more it brings in, the more that can be done on the crowdfunding end. Businesses, those deals are up to them.
9) Yes, there are regulations, although not a ton.
USC has its own NIL policy. It requires disclosures by the athlete, athletics facilities can't be used, can't interfere with team activities, etc.
State law prohibits athlete endorsements of vice categories like alcohol or gambling. There are certain marks that must be hit on the contractual front.
That's the general answer for regulations, although if you have any other aspects I didn't hit, let me know.
*** Hope these answers help. Please reach out here or via email (
Clark@gamecockcentral.com) if you have any follow-ups at all and I'll be glad to answer.
