Nebraska’s deal with Rhule includes payments for IP rights

As part of his new deal with the Univ. of Nebraska, football coach Matt Rhule “agreed to sell his intellectual property rights to the school, which will pay his annual salary to two sources,” according to Sam McKewon of the OMAHA WORLD-HERALD. The first contract is a standard coaching agreement, while the second contract is between the school and Rhule’s LLC, MRJR Ventures. When he makes $10M in 2027, $7.5M will go to Rhule and $2.5M will go to the LLC. This approach is “likely new to Nebraska” but “common at other schools.” What “might be new” in the industry is that through the LLC deal, Nebraska paid MRJR Ventures $5M this spring “to purchase Rhule’s intellectual property rights” for the duration of his Nebraska tenure. Using a “donor gift to entirely pay for the rights,” Nebraska “intends to make money off of Rhule’s name, image and likeness.” The school now owns the “House Rhules” podcast. Nebraska “could collect speaking fees should Rhule be paid to give a speech, or it could put Rhule’s face on a cup and sell it for profit.” Including that one-time payment, Rhule and his LLC will receive $13.5M this season from Nebraska. The rest of the term sheet is “accurate once the two deals are placed together.” The agreement “lists eight ‘services’ Rhule can perform to fulfill the contract and 20 sponsors he could do work for” (OMAHA WORLD-HERALD, 5/13).