NCAA may let players cash in on social media
Columbia's lightweight rowing team is looking to raise money through social media. (gocolumbialions.com)
Can college athletes make money on social media off their own name, image and likeness? That question has been raised to the NCAA in recent months by member schools because of a new social network called Tsu, which promises to give 90 percent of its royalties back to users.
Tsu (pronounced "sue") launched in October under the premise that all users are content creators and, unlike Facebook, should be given royalties for use of their content. That philosophy as it relates to college sports is being debated in the courts by the NCAA and Ed O'Bannon plaintiffs, and Tsu is now marketing itself as a potential venue for college athletes to be paid.
The model used by Tsu not only plans to pay users for content, but also for bringing in followers. Tsu divides each post's revenue by keeping 10 percent, giving half to the user who posted, and dividing the remainder with diminishing value among users that person invited and those they invited and so on.
It's a complex question whether college athletes can be paid from Tsu -- and it's one the NCAA won't address publicly. A federal judge ruled in the O'Bannon case in August that colleges are permitted to pay football and men's basketball players deferred payments for use of their names, images and likenesses starting in 2016-17. The NCAA, which is appealing the ruling, is permitted to cap the annual payments at $5,000 per year in 2014 dollars.
The NCAA has verbally communicated interpretations about its rules in relation to Tsu to athletic departments that inquire, according to Tsu founder Sebastian Sobczak and Columbia University lightweight rowing coach Nich Lee Parker, whose program wants to use Tsu to raise funds. Sobczak and Parker described the following as the NCAA's interpretation of Tsu:
Colleges, conferences, coaches and athletic departments can earn revenue from Tsu accounts. Coaches could have to report any athletically related income from Tsu in their yearly outside income financial disclosure to their athletic department.
Athletes are allowed to earn Tsu revenue from any posts that are personal. Examples could include taking a photo, making status updates or sharing links. Athletes are not allowed to earn Tsu revenue from any posts related to sports, such as posting a picture in uniform, sharing anything related to the team and sharing team photos.
The NCAA declined to comment for this article. Sobczak and Parker said the NCAA has not put its interpretation in writing.
"There's a new Internet-based economy developing and we have to adapt," Parker said. "I do think there's a difference between a revenue sport and a non-revenue sport. Nobody really cares what people on my team think, and if they're able to generate a great social media following and there's a picture of them at practice, why should that matter? But I think that's a very different situation than an athlete at Columbia University lightweight rowing or J.T. Barrett at Ohio State. He could probably have 50,000 followers in a couple days."
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NCAA may let players cash in on social media
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