Former football recruit files suit over alleged NIL failure

Former University of Florida (“UF”) recruit Jaden Rashada (“Rashada”) has filed a lawsuit against the university’s head football coach, director of player engagement and NIL, boosters and the company that partially funded an alleged failed NIL deal.

Rashada claims the UF head football coach, among other things, defrauded him out of millions of dollars in NIL money, claiming fraudulent misrepresentation, fraudulent inducement, aiding and abetting fraud, conspiracy to commit fraud, negligent misrepresentation, tortious interference with a business relationship or contract, aiding and abetting tortious interference and vicarious liability.

A highly sought-after high school football star, Rashada initially committed to the University of Miami in June 2022 with the promise of a $9.5 million no-deal, only to decommit in November 2022 once the 'UF proposed a $13.85 million no-deal.

Rashada claims that the UF head coach and supporters made “deceptive” promises to convince Rashada to commit to UF, but “changed their minds and went back on their word” once he signed the letter of intent. The initial deal was arranged by the Gator Collective, an independent fundraising organization that distributed money to UF athletes, but the deal as sold to Rashada never came to fruition, according to the complaint.

Rashada claims that once informed the multi-million dollar NIL contract was no more, he requested to be released from his letter of intent with UF. After his release, Rashada then committed to play at Arizona State University, as a quarterback for the 2023-2024 season. Rashada has since entered the transfer portal and transferred to the University of Georgia.

The NCAA launched an investigation into UF in June 2023 due to allegations that the football program violated recruiting rules. The NCAA prohibits boosters and collectives from having contact with prospective student-athletes to discuss possible NIL opportunities for the purpose of inducing the student to attend a particular school. Additionally, UF prohibits coaches and staff of the institution from organizing, facilitating, or arranging meetings between a booster/NIL entity and a prospective student-athlete. Additionally, coaches and staff may not communicate directly or indirectly with a prospective student-athlete on behalf of a booster/NIL entity. The NCAA asked UF not to conduct its own investigation and said it would notify the institution “soon of the expected timeline of the investigation.” This is the second NCAA investigation into UF in the last four years. In 2020, UF was placed on probation for a year and then-coach Dan Mullen was given a one-year penalty for recruiting violations.

The legal disputes surrounding NIL payments continue to have significant implications for the trajectory of college athletics. While the final outcomes of Rashada’s trial and the NCAA’s 2023 investigation into UF are currently unknown, this new lawsuit is just another example of how the legal framework that ushered in the NIL era is still evolving in significant ways. Given the stakes at play, colleges and universities would be wise to retain outside counsel to review their recruiting policies and practices in the evolving NIL arena.