LifeWallet CEO, John Ruiz, has made headlines recently for his involvement in the Miami Hurricanes basketball team’s success, but the future of his company remains uncertain. Ruiz played an integral role in constructing the team and provided name, image, and likeness (NIL) deals for four players who will compete in the Final Four. However, LifeWallet is facing the possibility of being delisted as a public company due to missed earnings reports and stock prices falling 91% from its IPO price.
The Controversial Dealings with Miami’s Best Players through NIL Deals
Miami’s first trip to the national semifinals has been clouded by controversy surrounding the team’s securing of its best players through NIL deals. The acquisitions of Kansas State transfer Nijel Pack and Arkansas State transfer Norvchad Omier, as well as the retention of star player Isaiah Wong, have been a point of contention among people. Charles Barkley and former Syracuse coach Jim Boeheim criticized college basketball in the NIL era, with Boeheim claiming teams in the ACC, including Miami, have bought their teams.
NIL has become a driving force behind player transfers, made possible by the NCAA rule allowing for immediate eligibility for transfers. Miami has quickly jumped to the front of the NIL landscape thanks in large part to Ruiz’s funding of several high-profile NIL deals associated with the Hurricanes’ athletic department.
LifeWallet’s Backing over 100 Miami Athletes across all Sports
According to reports, LifeWallet has backed over 100 Miami athletes across all sports at the cost of over $5 million. However, Ruiz’s past actions have prompted litigation from Norberto Menendez, LifeWallet’s original founder. Menendez alleges fraud, breach of contract, and negligent misrepresentation against Ruiz.
Menendez’s lawsuit claims that Ruiz failed to pay for LifeWallet assets and rebranded all his businesses to leverage the LifeWallet name without compensation. Critics are skeptical of LifeWallet’s potential to recover up to $89 billion and Ruiz’s claims that the company has valuable algorithms.
Struggling to Meet Projected Earnings and Release New Figures
LifeWallet’s stock price has fallen so low that the Nasdaq may boot the company altogether, and it has struggled to meet projected earnings. The company has not released new figures since the third quarter of last year, missing an earnings report deadline on March 31st.
LifeWallet has two businesses, one involving suing insurance companies and the other a digital health wallet. While Ruiz sees his involvement in NIL deals as a way to guide athletes with his life experiences and not to benefit from them, many remain skeptical of his intentions.
Ruiz’s Investment in Miami Hurricanes Basketball Team’s NIL Deals
Ruiz has invested between $12 million to $14 million in NIL deals for about 165 athletes, mostly for Miami’s football, basketball, baseball, swimming, golf, and volleyball teams. Ruiz tweeted about Nijel Pack’s two-year, $800,000 NIL deal and commitment to Miami after leaving Kansas State 11 months ago—an announcement that rocked the sports world.
Jordan Miller, Isaiah Wong, and Nijel Pack are three Hurricanes who have LifeWallet NIL deals. Ruiz plans on growing LifeWallet’s reach with multiple platforms, including a media company.
Ruiz’s Plans Amid the Business’s Struggles
Despite LifeWallet’s struggles and legal battles, Ruiz remains optimistic. He contradicts the NCAA characterizing him as a booster when it sanctioned Miami’s women’s basketball team in February. He plans on attending the Final Four showdown between Miami and Connecticut at Houston’s NRG Stadium.
Ruiz says he keeps an arm’s length distance from the players and the school and does not go into the locker room or get on the court afterward. He has a good relationship with coach Jim Larrañaga and loves that guy. Ruiz uses the LifeWallet platform to promote Miami’s new freshmen in football.
The Final Word
While LifeWallet’s future remains uncertain, Ruiz’s involvement in Miami Hurricanes basketball team’s NIL deals has certainly made an impact. The controversy surrounding the contracts has raised concerns about the ethics of the NIL era in college sports, but it remains to be seen what effect this will have on both Ruiz’s company and the Hurricanes’ success on the court.
Image Source: Wikimedia Commons
