Oklahoma Lays Off Athletic Staff Due to Revenue Sharing, AAC Expands Revenue Focus, & More| NIL Newsletter #331
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This Monday Newsletter Includes:
1. University of Oklahoma’s Athletic Department Lays off Employees due to Revenue Sharing
2. AAC Expands the Conference’s Revenue Focus Admist NIL
3. Arizona State Quarterback Makes Donation to Pat Tillman Foundation
4. Texas A&M Quarterback Inks Deal with Private Jet Company
5. David Pollack Calls for NIL Rookie Salary Cap
6. Legal Updates and What’s Coming Up for NIL
🏆Major News
University of Oklahoma’s Athletic Department Confirms Layoffs of Employees due to Revenue Sharing
Oklahoma athletic director Joe Castiglione confirmed that staff layoffs are underway as the school prepares to implement athlete revenue sharing, becoming one of the first public programs to acknowledge structural impacts tied to the upcoming House v. NCAA settlement.
In an internal email obtained by OU Daily, Castiglione wrote that the athletic department has “reached a critical moment” requiring restructuring, leading to a “limited reduction in force.”
Roughly 5% of the department’s 302 full-time employees — about 15 people — will be laid off, following extensive cost-cutting measures across the past nine months, per associate AD Mike Houck.
Castiglione also stated he would adjust his own compensation, though details were not disclosed publicly.
The layoffs precede the university’s July 1 commitment to begin reallocating $20.5 million annually in shared revenue with student-athletes — the projected cap under the House case terms.
Oklahoma is positioning its future NIL and compensation strategy as a competitive edge, with Castiglione noting new NIL parameters and a financial support structure aimed at athlete retention and recruitment.
AAC Expands Revenue Focus as NIL and Realignment Reshape College Sports
The American Athletic Conference (AAC) has launched American RISE Ventures, a new business arm focused on driving commercial innovation, enhancing sponsorships, and increasing revenue to support NIL and athlete compensation efforts across member schools.
The unit will lead media rights negotiations, brand partnerships, technology ventures, and all aspects of long-term revenue planning, with Bryan Calka appointed as the AAC’s new Chief Commercial Officer to oversee operations.
This move comes as direct athlete pay becomes imminent, with July 1 marking the potential beginning of revenue sharing under the House v. NCAA settlement, which could cap school payouts at $20.5 million annually.
AAC schools are expected to face a growing resource gap with Power Five programs, particularly in media rights revenue — currently averaging $7 million per AAC school versus $32 million in the Big 12 and $75 million in the Big Ten.
RISE Ventures aims to reduce the pressure on individual institutions by centralizing new revenue opportunities, while the AAC will also mandate minimum revenue-sharing contributions of $10 million per school over the next three years (excluding Army and Navy).
The initiative underscores the AAC’s push to remain competitive in an evolving marketplace defined by NIL economics, conference realignment, and the intensifying need for compensation parity in athlete recruitment and retention.
📌Other Notable Stories to Follow
ASU Quarterback Sam Leavitt Donates to Pat Tillman Foundation – Arizona State QB Sam Leavitt donated $15,000 to the Pat Tillman Foundation from NIL money. 🔗 LINK
Texas A&M Quarterback Inks New Deal with Private Jet Company – Texas A&M QB Marcel Reed becomes the 4th collegiate athlete to sign a NIL deal with a private jet company. Reed signed the deal with ENG Aviation Group. 🔗 LINK
David Pollack Suggests Freshman NIL Salary Cap – Former Georgia star David Pollack called for a “rookie salary cap” on his podcast, suggesting incoming college athletes should have limited NIL earnings until proving themselves on the field to avoid inflated deals and improve long-term decision-making. 🔗 LINK
Ex-Arkansas Basketball Player Boogie Fland set to recieve nice pay day from transferrring to Florida – After transferring from Arkansas, Boogie Fland is expected to be recieving an NIL deal north of $2 million. This deal comes after Fland had withdrew from the NBA draft this past April. 🔗 LINK
Boise State AD Calls Out the College Football Committee after the new seeding change to the CFB Playoffs - Boise State Athletic Director Jeremiah Dickey criticized the CFB Committee for changing the previous seeding that awarded conference champions with first round byes. The previous model had allowed the Boise State Broncos to receive a first-round bye. The CFB Playoffs are now set to have a straight seeding format. 🔗 LINK
📅What’s Coming Up Next for NIL
June 15: Deadline for universities to submit NIL compliance reports for the 2024-25 academic year
July 1: Florida's new law capping agent commissions at 5% of NIL earnings becomes effective
July 26: EA Sports to release "College Football 26" with increased NIL compensation for players
⚖️Legal Updates
Tennessee AD Advocates for Collective Bargaining in College Sports
Tennessee athletic director Danny White has publicly declared that collective bargaining with athletes is the only viable solution to the current upheaval in college sports. In an interview shared by Tennessee Chancellor Donde Plowman, both leaders agreed that the traditional amateurism model no longer aligns with the evolving landscape of college athletics, where athletes now receive substantial compensation through name, image, and likeness (NIL) deals. Their comments challenge the longstanding NCAA stance that student-athletes are not employees.
This shift comes as a federal judge considers approval of a $2.8 billion NCAA antitrust settlement, potentially allowing schools to pay athletes directly. However, the settlement does not include collective bargaining rights. Labor law expert Michael LeRoy highlighted the rarity and significance of White's position, noting that it could bring necessary labor stability and reduce costly litigation. Although legal frameworks vary between states—especially for public universities—LeRoy emphasized that sports transcend these regional legal differences.
White expressed urgency for reform, citing inadequate infrastructure and the complex nature of the evolving college sports environment. Tennessee has been at the forefront of advocating athlete rights, including a recent legal victory supporting NIL benefits for recruits.
Tennessee Basketball Player Zakai Zeigler Filed a New Eligibility Lawsuit
Zakai Zeigler filed a lawsuit in the Eastern District of Tennessee against the NCAA seeking a fifth year of eligibility. Zeigler requests a preliminary injunction to allow him to compete in the 2025-2026 season. The lawsuit highlights and questions the NCAAs redshirt rules.
Zeigler played four consecutive seasons and did not take a redshirt year or sit out a year of competition through a different mechanism such as a medical redshirt. Zeigler contends that athletes should be eligible to compete and earn NIL money during each year of the 5-year window of eligibility.
Zeigler further argues that he would face irreparable harm without immediate relief. Additionally, Zeigler claims that he could earn between $2-4 million in NIL compensation during the upcoming season. The lawsuit further mentions that Zeigler should not essentially be punished for no redshirting.
The lawsuit further contends that the fifth year is typically the most lucrative for college athletes and notes that Zeigler earned $500,000 in NIL compensation during the 2024–25 season. Zeigler recently graduated from Tennessee and intends to begin a graduate program.
Zeigler holds school records in assists (747) and steals (251) and is a three-time All-SEC selection and two-time SEC Defensive Player of the Year.
The lawsuit indicates that Zeigler is not challenging the 5-year eligibility window but rather the 4-year competition window within the 5-year window.
Zeigler cites the Pavia (Vanderbilt) and Elad (Rutgers) eligibility rulings granting preliminary injunctions.
The Spyre Sports Group projects $2-4 million in NIL for Zeigler’s graduate season, which is an unusually detailed damages model that will resonate in future cases.
Plaintiffs say the rule undercuts the NCAA’s own academic mission by forcing seniors with remaining coursework into the draft or foreign leagues. Expect Judge Clifton Corker to weigh academic benefits (Alston precedent) against economic harms.
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