Matthew Sluka: NIL Disputes and the Necessity of Contracts

Aman Sankineni

Matthew Sluka, the starting quarterback for the University of Las Vegas (UNLV) Rebels, recently left the team midway through the season over a monetary dispute due to unfulfilled “representations” that “were not upheld,” allegedly made to Sluka by an assistant coach on the team.[1] The saga and its fallout provide a learning opportunity for other college football programs, the NCAA, and its business model and illustrates the importance and necessity of written agreements and proper representation.

Since the ruling in NCAA v. Alston, college athletes have been allowed to profit from the commercial use of their name, image, and likeness.[2] However, the NCAA still prevents schools from offering quid pro quo incentives where high school recruits are offered money in return for their commitments.[3] As a result, NIL collectives have become important, independent nonprofits that fundraise money for universities and give that money to incoming athletes as part of NIL agreements.[4]

Unfortunately, the current system has very few rules, regulations, or enforcements, leading to situations like that of Sluka, where athletes face an impossible situation. Sluka claims he was promised $100,000 through a verbal agreement from UNLV and was never paid. As a result, and without any options for legal recourse due to the verbal nature of the arrangement, Sluka chose to leave the team and the program during the season,[5] shocking college fans across the nation and sparking a debate over the ethics, enforcement, and the negotiation process that is part of NIL deals and athlete transfers. Without a written agreement, Sluka had no opportunity to pursue legal action. Additionally, the lack of evidence to support or deny his claims, along with the public nature of his claims, may also cause his reputation to suffer in the eyes of many.

The situation’s difficulty was compounded by other factors. Sluka’s agent was reportedly not certified to operate in Nevada.[6] Released correspondence between the agent and UNLV showed no signs of a request for the supposedly unpaid money.[7] Proper representation could have preempted the situation by insisting on some form of a written agreement at the time of the promise, as in the case of Jaden Rashada, who was shorted millions of dollars in promised payments and now can pursue legal recourse against his former team in court.[8]

Overall, the cracks in the legal landscape resulting from the ruling in NCAA v. Alston are slowly beginning to show in the cases of college athletes like Matthew Sluka and Jaden Rashada. Whether the fault of the athletes, the system, or the schools, the current system leaves too many loopholes that are easily exploited. Leaning on contract law and ensuring proper representation offers heightened protection for athletes, but more enforcement mechanisms and rules may be necessary in the future.

 

[1] David Ubben, Five lessons learned from the Matthew Sluka NIL saga, N.Y. Times: The Athletic (October 4, 2024), https://www.nytimes.com/athletic/5812898/2024/10/04/nil-matthew-sluka-unlv-lessons/ [https://perma.cc/YVG4-S57F] [https://web.archive.org/web/20241007164043/https://www.nytimes.com/athletic/5812898/2024/10/04/nil-matthew-sluka-unlv-lessons/].

[2] National Collegiate Athletic Association v. Alston, 141 S.Ct. 2141 (2021).

[3] Ashley R. Lynam & Patrick Smith, When One (NCAA) Door Closes, Another (NIL) Door Opens: What Pre-Collegiate Enrollment NIL Deals Mean for Schools & NIL Collectives, Montgomery McCracken Walker & Rhoads LLP (March 13, 2024), https://www.mmwr.com/when-one-ncaa-door-closes-another-nil-door-opens-what-pre-collegiate-enrollment-nil-deals-mean-for-schools-nil-collectives/ [https://perma.cc/H5JT-BHSV] [https://web.archive.org/web/20241007230156/https://www.mmwr.com/web/20241007230156/https://www.mmwr.com/when-one-ncaa-door-closes-another-nil-door-opens-what-pre-collegiate-enrollment-nil-deals-mean-for-schools-nil-collectives/].

[4] Id.

[5] Max Olson, QB Matthew Sluka leaving UNLV: What we know and what’s next, ESPN (September 25, 2024), https://www.espn.com/college-football/story/_/id/41438443/qb-matthew-sluka-unlv-rebels-nil-dispute-next [https://perma.cc/B94Q-WPUD] [https://web.archive.org/web/20241007224012/https://www.espn.com/college-football/story/_/id/41438443/qb-matthew-sluka-unlv-rebels-nil-dispute-next].

[6] Supra note 1.

[7] Supra note 1.

[8] Michael McCann, Georgia QB’s Fraud Lawsuit Poised to Shake Up NIL Collectives, Sportico (May 21, 2024), https://www.sportico.com/law/analysis/2024/jaden-rashada-florida-lawsuit-nil-collectives-1234779815/ [https://perma.cc/B5T4-U4QW] [https://web.archive.org/web/20241007223242/https://www.sportico.com/law/analysis/2024/jaden-rashada-florida-lawsuit-nil-collectives-1234779815/].