What is a Collective?
In 2021, the U.S. Legislature passed legislation that allowed college athletes to be compensated for use of their name, image and likeness. Shortly afterward, the NCAA instituted rules to define the process by which compensation could be provided to these students. “Collectives” were born to administer the services and payments to student-athletes.
Why is the Collective beneficial to the NIL process?
Properly formed, a Collective provides student-athletes a structured vehicle which ensures that all contracts are legal, all taxes on funds are properly accounted for and reported and provides additional education in areas such as marketing, financial literacy and professional transition.
Are all collectives operated the same way?
Because the NCAA rules are fairly broad, each collective is choosing the format and guidelines for compensating their student-athletes. The LTTC has chosen to use a model that provides engagement, mentoring and life skills not usually taught or learned in the classroom. Student-athletes will agree to serve as ambassadors in
- Mentoring programs partnering with local businesses, schools, and organizations that build up young people
- Developing and participating in events with local charities to raise funds and awareness
- Hosting free sports clinics for community youth programs
- Producing social media / podcasts, to discuss social issues in a manner that promotes positive solutions
Is the Collective a private business or owned by a group or individual?
No. The Collective has filed for 501 c 3 status and all funds, other than minimal operating expenses, will be distributed to student-athletes through a percentage of funds collected to meet the contracted dollars. All remaining funds will be held in the Collective for future contracts. If for any reason in the future the Collective shall cease to exist, all remaining monies would be donated to the North Texas Athletic Department per NCAA rules in place at that time. It is important to note that Collectives must operate totally independent of the University and its’ athletic department.