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Miami was an NIL pioneer, but now its biggest source is drying up.
Remember when NIL came on the scene, and coaches and fans called it the “wild west”? It was because certain schools jumped the gun with rich supporters who offered up money to buy players and then worry about the details later.
Miami was one of the schools that had a gazillionaire backing its NIL program, which was funded by their “NIL King” for how much he was forking over.
The story surrounds healthcare entrepreneur John Ruiz, who got famous for paying basketball star Nijel Pack $800,000 plus a car to transfer from Kansas State and sign with the Hurricanes. Ruiz also put up the money to get the blonde Cavinder sisters to sign with the U’s women basketball team.
Pack still plays for Miami, but the NIL godfather is now in serious trouble with his company, LifeWallet, which posted a $200-plus million loss in 2023. Ruiz reportedly has spent $10 million on NIL deals with Canes’ athletes and has had to tell his investors their money was gone for good as LifeWallet is under federal and civil probes.
Miami and Ruiz were among the schools and donors who used the broadest interpretations of NIL guidelines provided by the NCAA, which at the time said it would not investigate irregularities and punish cheaters. And, of course, it’s not anything like a private-equity investment because Ruiz wasn’t getting any return for the NIL money he paid athletes.
Ruiz’s commitment to help fund a much-needed football stadium closer to campus at Miami is also up in smoke while he and LifeWallet have been subpoenaed by the Securities and Exchange Commission. The SEC investigated the company and has since said it has “substantial doubt” about its viability moving forward.
Ruiz won’t go broke, as he was listed among Forbes’ billionaires in 2023 with a net worth of $1.5 billion. But Miami’s reliance on him could leave the school without enough money to continue its NIL program while Ruiz is in litigation.
Miami women’s basketball was charged with sanctions by the NCAA and new president Charlie Baker, who has started to follow up reports on sketchy NIL deals and found the U to have had impermissible meetings with recruits, whatever that means.
On the NIL spectrum, most schools are still doing it the way they started or have revamped their programs like UNC consolidated its football and basketball collectives under the name of Carolina NIL, which is reorganizing.
It’s another unknown about the constantly changing college athletics landscape. Athletes and their agents are bargaining with the schools recruiting them but as far as setting limits on the amounts of money in play, that train left the station long ago.
Featured image via Associated Press/Rebecca Blackwell
Art Chansky is a veteran journalist who has written ten books, including best-sellers “Game Changers,” “Blue Bloods,” and “The Dean’s List.” He has contributed to WCHL for decades, having made his first appearance as a student in 1971. His “Sports Notebook” commentary airs daily on the 97.9 The Hill WCHL and his “Art’s Angle” opinion column runs weekly on Chapelboro.Chapelboro.com does not charge subscription fees, and you can directly support our efforts in local journalism here. Want more of what you see on Chapelboro? Let us bring free local news and community information to you by signing up for our newsletter.
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