The Cardinal and Gold Standard

Dan Nguyen takes pride in giving back to his community. Nguyen, a Marshall School of Business graduate who worked for 20 years in private equity, owns The Rex Seaside Steakhouse in Redondo Beach, California, and is a passionate member of the Trojan family.

“I'm an SC diehard and love the football team,” Nguyen said. “I would never say no to supporting USC football or any athlete or alumni.”

The Rex is the official steakhouse of BLVD — pronounced “boulevard” — the official USC “collective” created to cultivate business relationships and produce business opportunities for student-athletes; however, this was never possible until last year.

On June 30, 2021, the NCAA approved a rule giving college athletes the right to be compensated for their name, image, and likeness, or NIL for short.

This drastic change ushered in a new era for college athletics and potential partners like Nguyen, saying that “it gives all the alumni an opportunity to sponsor and support and help the players in any way they can.”

Dan Nguyen and his wife, Lisa, host USC football players at The Rex Steakhouse. Photo courtesy of BLVD.

“It’s like a dream come true,” Nguyen said.

But the NIL revolution outpaced rulemaking. NCAA legislation fell behind, causing confusion but also allowing expansive exploration and experimentation.

Colleges launched an NIL arms race, with collectives popping up everywhere and partnerships forming daily. The common goal: boosting opportunities for current student-athletes and making universities more attractive to potential recruits.

Many deem the current state of NIL to be the Wild Wild West.

USC adopted a firm stance on compliance with the NCAA and kept its NIL decisions under control. USC partnered with BLVD, creating lucrative opportunities for compensation by leveraging the USC network and tapping into the Los Angeles entertainment industry.

BLVD LLC is the 6th most ambitious NIL collective in the nation, according to the ON3 NIL database, with Spyre Sports Group in Tennessee topping the rankings.

Conflict and uncertainty appear on the horizon with the formation of Student Body Right, a third-party, donor-run collective. USC fears potential future sanctions because the university cannot ensure the group will comply with NCAA rules.

Competition and confusion is occurring at universities across the country.

In 2019, the California legislature approved a bill prohibiting schools from punishing student-athletes who profit from endorsements. The following year, the U.S. Supreme Court agreed to hear an antitrust lawsuit between the NCAA and ex-West Virginia running back Shawne Alston.

On June 21, 2021, the Supreme Court ruled unanimously in favor of Alston, opening the floodgates for the formation of collectives and agencies to capitalize on fresh NIL opportunities.

“These benefits are going to be life-changing for a number of athletes, and I am very proud,” said attorney Jeffrey Kessler in an interview with Sports Business Journal following the Alston decision.

Since the ruling, Division I schools and universities around the nation have formed more than 100 collectives, according to the ON3 NIL database. Many schools created multiple collectives, and the university retains full responsibility.

Collectives generate revenue in two main ways: outside partners that get involved through promotions, like a typical sponsorship deal, and donor-run membership programs, where anyone can contribute money in return for unique benefits.

The NCAA allows NIL activity as long as “pay-for-play” and illegal recruitment rules are not violated. However, regulations are still a work in progress.

“The current environment — both legal and legislative — prevents us from providing a more permanent solution and the level of detail student-athletes deserve,” said the NCAA in its official NIL statement.

When the NIL policy came into effect, Mike Jones, founder of Stay Doubted, the parent company of BLVD, saw an opportunity to join the developing world of NIL as an experienced media agency and partnerships business member.

Since July 1, Jones has generated over $3 million in NIL deals for universities and student-athletes through Stay Doubted, “a modern-day media company creating original content for next-generation audiences passionate about the intersection of athletics, lifestyle, and culture.”

Mike Jones, Founder of Stay Doubted. Photo courtesy of Jones' twitter.

“NIL today does not operate very traditionally,” Jones said. “It operates in a very uncontrollable fashion.”

A former wide receiver at the University of Southern Mississippi, Jones sees glaring issues in the ever-evolving NIL market for student-athletes.

“A lot of these collectives have the right intentions in mind,” Jones said. “Unfortunately, a lot of them don't know what's best for the student-athletes.”

Jones saw a need to represent student-athletes now that they could monetize themselves and their platforms.

Enter BLVD.

Last June, the USC athletic department partnered with Stay Doubted to create BLVD, an agency and media company serving USC athletics in their search for NIL business partners.

Jones allied with Brandon Sosna, former USC athletics chief of staff, to create an NIL powerhouse. Together, they brought in Spencer Harris, the former director of USC player personnel, as a full-time member of BLVD.

“Our entire mission is to build a sustainable and compliant NIL model that is unmatched in the country, taking advantage of the many benefits, advantages and resources of USC and Los Angeles,” Harris said.

BLVD has created considerable NIL opportunities for USC Football, from partnerships to new types of sponsored content within sports subcultures. For example, partnering with Fletcher-Jones Automotive Group, BLVD provided wide receiver Jordan Addison and defensive lineman Tuli Tuipulotu with brand-new Mercedes-Benz S500s.

The collective has also produced multiple shows, such as "Let's Taco 'Bout It," which dives into Los Angeles food culture with football players, and "Fit Check," which details a random student-athlete’s top three outfits. These provide alternative ways to create sponsorships, marketability, and revenue streams.

BLVD embraced a firm stance on student-athletes' education in financial literacy, tax, accounting and compliance, deeming them necessary for student-athletes navigating the world of NIL.

Harris said BLVD wants “to ensure everything is done the right way to get our athletes supported in the best way possible.”

He sees the potential of BLVD for current and future student-athletes. Being in lockstep with the compliance department and other programs will only help everything run smoothly.

“As we bring more opportunities to current players, it should be much easier to recruit because the top athletes can see the potential if they come to USC,” Harris said.

In addition to NIL opportunities, BLVD partnered with former USC student-athletes in an ambassador program, inviting them to work directly with the players.

“They're the history,” Harris said. “We’re just trying to make them feel a part of everything we do.”

BLVD is just getting started, and Harris said major plans are in the works.

BLVD is poised to be one of the nation’s leading NIL agencies; however, a cloud of uncertainty is on the horizon.

In August 2022, Student Body Right announced they would join the NIL scene at USC despite no affiliation or partnership with the university. Former USC chief doner Brian Kennedy was touted as a main donor of SBR.

Kenendy and USC have a complicated history — the Trojans’ practice field bears his name but he previously said the university "double crossed" him after hiring Steve Sarkisian over Ed Orgeron as head football coach in 2013.

Furthermore, SBR stated it intends to provide the equivalent of a base salary for football players through community service and charitable work.

The announcement of SBR sparked backlash and raised questions, as the formation of multiple NIL collectives caused pushback at other schools.

When asked about the developing situation, USC did not respond to questions nor would the university grant an interview with a football player. A USC representative called it an “interesting new space we are all navigating.”

“The more cooks in the kitchen, the tougher, and you're dealing with a very complex industry already,” Jones said regarding SBR. “I think a one-collective system is vital to the success of any ecological program.”

Harris agrees with the one-party system, and said, “it just creates more confusion for the athletes or potential donors.”

Jones is also concerned with the transparency and compliance of unaffiliated collectives, as the topic remains at the forefront of NIL debates.

When asked about the developing situation on the Trojans Live radio show, Head Coach Lincoln Riley is on the same page, and said, “the best thing that we could ever do is try to get it under one roof."

Lincoln Riley, Head Coach of USC Football. Photo courtesy of USC Athletics

“We want our guys to be able to do well in the NIL space, but we also want to protect our university's reputation,” Riley said. “We want to do things with compliance.”

Above all else, Harris and Jones believe that the landscape of NIL will drastically change in the next two or three years. Harris sees consolidation as NIL matures, while both hope for more clarity in regulation and enforcement.

Rex owner, Dan Nguyen, believes BLVD will be the blueprint for NIL in the long run but also questions the developing situation with SBR.

“If you set up your own thing and do things outside of the USC framework, you start to question if you are really helping the student,” Nguyen said. “Or are you actually in it for yourself and your own egos, right?”