There was a deal made in June of 2021 after the NCAA vs. Alston case which centered on whether or not athletes could earn compensation based on their likeness. The case resulted in a unanimous vote and many states have agreed to pass the bill. You may have heard of the Name, Image, Likeness (NIL) Deal, but what does this ruling mean for future collegiate athletes?
WHAT IS THE NAME, IMAGE, LIKENESS DEAL?
An NIL agreement is basically a contract set in place for the student-athlete to earn fair compensation for their time and effort, now allowing them to market their likeness. An NIL agreement could be an endorsement deal on a local or national level through various marketing platforms. The deal will allow collegiate athletes to earn wages from endorsement deals and more through outside companies based on their name, image, and likeness.
In the simplest of terms, Name, Image and Likeness (NIL) is a term that describes the means through which college athletes are allowed to receive financial compensation. This doesn’t just mean brand deals, social media influencing and billboards, this can also be through setting up camps, teaching lessons, etc. It covers any means of earning money related to a player’s NIL through their athletic talents or recognition.
In a media-driven world overflowing with social media celebrities and new influencers going viral every day and getting brand deals and sponsorships—it makes sense for college athletes to want in on the benefits of sponsorships and brand deals.
HOW DOES THE NIL HELP COLLEGIATE ATHLETES?
College athletics are widely watched with a huge fan base and a great potential for influence marketing. The NIL allows student-athletes to obtain sponsorships, be paid for social media posts, sign endorsement deals, sign with agents, and more.
College Athletes have long been used in promotions and on school-inspired merchandise but were unable to earn the compensation. The NCAA v. Alston ruling puts the power in the hands of the student-athlete instead of the college/university team they are on. This would apply for all sports—golfers, tennis players, Olympic athletes, etc.
Student-Athletes can now earn more than scholarship funding, they can earn their own money and control how they choose to promote their name, image, and likeness!
ATHLETES ARE NOW ALLOWED TO:
- Monetize their social media accounts
- Sign autographs
- Participate in advertising campaigns
- Teach camps or lessons
- Start their own businesses
- And more!
If you’re considering college athletics and the idea of possibly earning money through endorsement deals or social media influence appeals to you, make sure you check the state laws and the school regulations for the university or college you plan to attend.
A COLLECTIVE EFFORT
Many universities have school collectives/NIL groups that work directly with the university athletic departments to empower coaches and recruiters to become part of the NIL process. These collectives are associations of university boosters and resources to offer payments to recruits and/or current players.
Collectives are typically launched by fans or boosters of a specific school to pool together financial resources to pay athletes in exchange for NIL reward. Collectives can help secure or offer services such as social media and public appearances. Depending on the size of the school and athletics program, there may be individual collectives for different sports.
WHAT HIGH SCHOOL ATHLETES CAN EXPECT:
Prospective student-athletes may engage in the same types of NIL opportunities available to current student-athletes under the interim NIL policy without impacting their NCAA eligibility. However, as there are no comprehensive rules for high school student-athletes and each rule varies state by state, the specifics will be decided upon by the student’s high school athletic association. NIL opportunities may not be used as a recruiting inducement or as a substitute for pay-for-play.
TIPS FOR HIGH SCHOOL ATHLETES TO INCREASE THEIR ON3 NIL VALUATION:
- Increase social media followers
- Improve athletic stats
- Working with college/university
Disclaimer: AHSAA prohibits Alabama high school athletes from monetization exceeding $250 while competing at high school level. Governor Kay Ivey repealed the state’s NIL legislation in February 2022.
Many players in high school are being ranked by their On3 NIL Valuation based on their social media followers as well as talent.
WHAT IS THE ON3 NIL VALUATION?
The On3 NIL Valuation is the industry’s leading index that sets the standard market NIL value for high school and college-level athletes. It signifies an athlete’s value at a certain moment in time and what his/her expected annual value is.
The On3 NIL Valuation is comprised of data from three primary categories:
- Social media following and engagement
- Athlete data, achievements, performance, and media sentiment
- Endorsement deals, opportunities, and Collectives