Companies find digital loopholes in NIL rules to allow direct payments to college athletes

abcnews.go.com:

Two years after the NCAA cleared the way for college athletes to earn money off their fame and celebrity, digital technology is allowing some of them to get paid by their fans without having to do very much in return

STORRS, Conn. — Two years after the NCAA cleared the way for college athletes to earn money off their fame and celebrity, digital technology is allowing some of them to get paid by their fans without having to do very much in return.

Most deals struck by athletes under name, image and likeness guidance from schools or states are in exchange for something — an athlete endorsement on social media, for example, or an appearance at an event.

It is now possible to pay athletes money while receiving something far less tangible: a digital non-fungible token, or NFT.

Brent Chapman runs a platform called myNILpay. The app allows fans to choose a college athlete and send them money; the app then sends a notification to the athlete's school email. The athlete fills out a form and the money is then transferred via Venmo or a similar payment method.

In exchange, the fan receives a unique computer-generated piece of “art” with the athlete's signature on it. Chapman said that serves as the quid pro quo.

“This just gives an opportunity for fans to directly support athletes for whatever the reason they want,” he said. “Now, if a kid kicks the winning field goal, you know, a thousand people can go out and give them 50 bucks. That’s pretty cool, right? And those are the type of things that I think we’ll see happen as we get into the football season and stuff.”

RJ Cole, a former point guard at UConn and Howard University, is using the app to send money to about 50 current men's and women's basketball players at the two schools.