Oregon High School NIL Contracts: A Black Hole

Trouble is brewing in Oregon’s high school sports.

Late last year I asked Portland Public Schools for access to all Name, Image and Likeness (NIL) contracts signed by students in the district that have been disclosed to member schools.

“In discussion with staff, I understand that we didn’t identify records of any NIL agreements being shared by students, and I understand we don’t have a formal process to capture this information,” Ryan Vandehey, Public Records Officer and Media Relations Representative with the District, replied initially. “If you’re only looking for copies of agreements, then I think the answer is that we don’t have any records.”

He later added, “I understand from staff that we don’t have any formal process to recognize or collect such agreements, and informally staff could not recall any. It’s possible that a student has such an agreement and either hasn’t shared it with staff or only shared it with school-level staff, but it would take some digging to find that out.”

The fact is, there’s no requirement in Oregon for such contracts to be filed with high schools or for them to be subject to public records requests.

It’s not just Oregon’s college athletes who are reaping financial rewards from the personal branding now allowed in name, image and likeness, or NIL, deals. Some Oregon high school students are on the gravy train, too.

The consequences could be significant ……and worrying.

Just a few years ago, many high schools were hostile to the college NIL option slipping down to the high school level.

“Coaches’ jobs would be impacted dramatically by a policy permitting NIL payments,” noted a 2021 article on the  National Federation of State High School Associations (NFHS) website. “Between teaching their sports’ fundamentals and nuances, scouting opponents, organizing effective game plans and managing different personalities and priorities to get players striving toward a common goal, coaches must have a firm grasp on a variety of moving parts to be successful. The presence of a single NIL contract within a team dynamic has the potential to affect the attitude and playing style of every player on the team, making each aspect of coaching significantly more difficult to control.”

“It’s certainly not something that any coach is going to be happy to deal with,” said John Holecek, head football coach at Loyola Academy in Wilmette, Illinois. “It’s a complete change, and kids aren’t mature enough to handle it for the most part. Hopefully, that won’t be the case, but you would think there’s going to be some tough situations out there for coaches to deal with.”

Notwithstanding such concerns, Oregon joined the high school money rush on October 10, 2022, when the Oregon School Activities Association (OSAA) adopted NIL rules for high school athletes.[1]

Two Portland-area high school athletes, Jackson Shelstad , a basketball player at West Linn High School , and Sofia Bell, a  basketball player  at Jesuit High School, were the first to take advantage of the new NIL rules in October 2022 when they signed with Portland Gear owner Marcus Harvey to promote his brand. 

As of Sept. 2024, this is what the high school NIL picture looked like across the country, according to Opendorse, used by brands, schools, fans, sponsors and collectives to help athletes build and monetize their name, image and likeness.

With every state and the District of Columbia having their own rules, it’s now really the wild west out there in high school NIL-land. 

HuskerMax, a website that covers University of Nebraska sports, notes that allowing high school athletes to earn NIL money “opens up the potential of leveraging NIL as a recruiting tactic”. An NIL collective, for example, “could offer an NIL deal to a highly rated high school prospect with the undertones that signing with the college team would increase or lengthen the payout”. 

“…that’s what’s happening behind the scenes at every college and with every NIL Collective.,” HuskerMax says. 

“Loopholes abound, says HuskerMax. “If you’re a big-time recruit, get an agent and a lawyer ASAP.”

The NIL game can also divert the attention of high school athletes by pressing them to be more active on social media, a distraction with potential negative implications. After all, high-profile athletes need to do more than be standout players to attract attention. They can, for example, sign deals with brands to promote their products on their social media channels, get paid to share their training routines and design and sell custom merchandise like jerseys and posters.

But maintaining an aggressive social media presence is demanding and can become a job in itself. It can also pressure high school athletes, many of whom are still maturing and not yet legal adults, to adopt a persona that may not be consistent with their true self. 

John E. Johnson, J.D. , a former athletic director at an Overland Park, Kansas high school, cautioned on the website of the National Federation of State High School Associations (NFHS), which promotes high school athletics and activities, that NIL programs at high schools are counterintuitive to the positive traditional notions of education-based athletics. 

High school students with NIL contracts may also come up against a coach’s controls, Johnson wrote.  Under such circumstances, can/will a coach effectively control. 

  • Earned playing time,
  • Fair and deserved discipline of the player if necessary, or
  • Leading the team and community through any resentment of other athletes and families directed at the athlete with an NIL deal.

NIL deals can also spur intense competition between in-state high schools and between states with differing rules.

When I attended a private New England prep school (a long time ago), it was common for the school to poach star athletes from public schools with a post-grad year and a full scholarship offer as inducements. Some public schools also recruited athletic standouts from other districts, encouraging them to live with a relative in the new district to qualify for attendance.

Luring out-of-district and out-of -state athletic stars is still common today.

In 2024, Jada Williams was a senior basketball player at La Jolla Country Day School, a private school in San Diego, California. She was originally from a suburb of Kansas City, Missouri, but the state didn’t allow NIL, so she headed West to a state and school where she could capitalize on what she figured was her NIL value. At La Jolla, Williams signed NIL deals with Spalding, Gym Shark and Move Insoles, generating more than six figures a year. 

How many Oregon high schools have students with similar deals? Who knows?

The existence of some high school athletes’ NIL deals in Oregon is clear, but the OSAA rules have a gaping loophole. Students are required to disclose a proposed contract to their school, but the school is not required to keep a copy or make it available for public inspection. Nor is the student required to notify the OSAA of a contract/agreement or provide a copy of the agreement to the organization. 

That means public high schools, public school students and the OSAA can, and do, stymie efforts to seek disclosure of such contracts. 

Such secrecy, particularly at public schools, is trouble waiting to happen.

The Oregon School Activities Association (OSAA) can remedy that by requiring that student athletes signing NIL contracts provide copies to their schools and that member schools make any NIL contracts entered into by their students public records.

It’s the right thing to do.


[1] The following is intended to offer guidance to students, parents, and member schools regarding Name, Image and Likeness (NIL).
A student may earn compensation from the use of their Name, Image, Likeness (NIL) provided that: 

  1. (a)  The compensation (or prospective compensation) is not contingent on specific athletic performance or achievement (e.g. financial incentives based on points scored) 
  2. (b)  The compensation (or prospective compensation) is not provided as an inducement to attend a particular member school or to remain enrolled at a particular member school (“Undue Influence”). 
  3. (c)  The compensation (or prospective compensation) is not provided by the member school or an agent of the member school (e.g. school booster club, foundation, employee, etc.) 
  4. (d)  The student-athlete discloses any proposed agreement/contract to the member school at which the student is enrolled and/or participating. 

In seeking compensation for Name, Image and Likeness (NIL):
(a) The student shall not use OSAA or member school marks, logos, insignias in NIL activities. 

  • (b)  The student shall not wear apparel or equipment which includes OSAA logos or member school markers and/or logos for the purpose of NIL activities. 
  • (c)  The student shall not reference the OSAA or member school name and/or mascot for the purpose of NIL activities. 
  • (d)  The student shall not use a member school’s district facilities and/or equipment for the purpose of NIL activities. 
  • (e)  The student shall not use school practice and/or game film for the purpose of NIL activities. 
  • (f)  The student shall not promote any services and/or products during team activities. 
  • (g)  The student shall not promote activities, services, or products associated with, but not limited to,: 
  • (i)  Adult entertainment products or services; 
  • (ii)  Alcohol, tobacco, nicotine and vaping products; 
  • (iii)  Cannabis products; 
  • (iv)  Controlled dangerous substances; 
  • (v)  Prescription pharmaceuticals; 
  • (vi)  Political parties and/or candidates; 
  • (vii)  Any product illegal for people under 18; 

(viii) Gambling, including sports betting, the lottery, and betting in connection with video 

games, on-line games and mobile devices; (ix) Weapons, firearms, and ammunition. 

The student and their family are encouraged to seek legal counsel and tax advice when considering NIL activity, along with guidance from their member school. 

NOTE: Compliance with these policies does not ensure maintenance of eligibility under the eligibility standards of other high school state activity associations or entities such as, but not limited to, the NCAA, NAIA, NJCAA etc. Students are encouraged to communicate with those organizations to ensure any activity complies with those eligibility standards. 

The Portland Timbers/DaBella Deal: Bad from the Beginning

The Portland Timbers got an out from its troubling partnership with Hillsboro-based DaBella Exteriors on Wednesday when The Oregonian disclosed that “the company’s chief executive (Donnie McMillan Jr.) is facing a lawsuit that threatens to bring to light complaints that he made unwanted advances and sexually harassed at least three female employees.”

“The Portland Timbers have terminated the club’s corporate partnership with DaBella, effective immediately, after learning yesterday of allegations of misconduct at the company included in a court filing that was made public on Feb. 23.,” the club announced in typical public relations-speak.

As if Portland didn’t already have enough reputation concerns.

The Timbers should have seen this coming.

It used to be that sports teams linked up only with highly regarded businesses that would enhance their mutual reputations, not tarnish them. Apparently, the Timbers didn’t care when they announced their multi-year jersey rights partnership with DaBella on Nov. 15, 2023.

According to the Sports Business Journal, the Timbers deal with DaBella came together after DaBella officials, including  McMillan and DaBella CMO Bastian Cowsert, and Timbers officials, including owner Merritt Paulson, CEO Heather Davis and CRO Joe Cote, met at Providence Park in July 2023.

DaBella saw the value of teaming up with a respected professional soccer team. “Brand matters in our category; the majority of our customers are putting on a roof once,” Cowsert told the Sports Business Journal. ”So having brand equity translates to a commitment in quality and customer satisfaction.” 

The Timbers must have decided to ignore the fact that DaBella’s reputation in the home improvement business is far from an admired leader with “a commitment in quality and customer satisfaction”.

If the team had done even a little research, including of some major media, it would have found questions about McMillan and a previous business, a stream of negative reviews of DaBella’s business practices, and concerns about the company’s ethical lapses.

In March 2010, when McMillan was president of a Mukilteo, WA-based window replacement company, Penguin Windows, the company reached a settlement with the Washington Attorney General’s Office over a complaint made against it by the state’s chief legal office.

That complaint alleged the company misrepresented its products, making false claims about the energy savings customers would achieve and misleading consumers into thinking that the in-home appointments they set up with Penguin were something other than sales calls.

Penguin subsequently filed for Chapter 11 bankruptcy protection in federal bankruptcy court in Seattle, WA on Feb. 25, 2011. The company, which was legally incorporated as Statewide Inc., shuttered later that year.

McMillan founded DaBella in Oregon that same year. 

The company, which has since expanded to 46 locations across 17 states, has accumulated a massive stream of negative customer reviews on a wide variety of sites since then.

Yelp

2023 :  “If I could give zero stars I would… They will not stop calling and coming to my door PUSHING their “free roof estimate” BS… They take advantage of the kindness of people who don’t want to push them away and be rude but I’ve had ENOUGH.”

2022: “This outfit is the most unprofessional, unqualified construction company in Oregon. Check their record with OCCB (Oregon Construction Contractors Board)…Their customer service is abysmal and the work that was done on our house had zero supervision while it was being completed…Do not trust this company. They are deceitful and you will end up worse off than when you started. ..Oregon homeowners should be protected from dishonest, predatory businesses like this one…just look up their contractors license (194160) and read how many complaints they continually receive. It’s horrendous and Oregon homeowners should be protected from dishonest, predatory businesses like this one.

Pissedconsumer.com

Recent comments: “Do not let these people in your house!”, “Do not use this company”, “This is not a company I would trust. If they don’t respect you enough to return phone calls, give you a timeline, they won’t respect you enough to follow through and do a good job”, “Hire Dabella at your own risk. I recommend avoiding them completely.”, “Don’t bother with DaBella, they are a terrible company”. 

Consumer Affairs

“Assume it’s 2x as bad as it sounds! Sales people LIED to me on timing. Told 6-8 weeks, took 16 weeks…they just dish the work out to local contractors, whoever is cheap! They send some ** contractors who didn’t have their own materials or tools needed who ripped off thousands of dollars of custom historical trim.”

Better Business Bureau

“DaBella agreed to knock $5,000 off initial price of $ $27,694 for new roof. When I received my first statement the $5300 was not deducted off my bill. I then again called ***** and he said he would talk to the finance department to take care of the deduction. I called him 5 more times within the next three weeks with no response or when he did answer phone he said he was working on it. Finally after three weeks he said there was nothing he could do because the job was done and loan was pushed through.”

When the Timbers/DaBella deal was announced, McMillan said the Timbers are “…an organization that shares our core values”.

That’s regrettable.