NIL (Name, Image, and Likeness), which has been in effect for almost three years, has significantly changed from the beginning. From the start, it has been a winding path to navigate, and it continues to evolve with recent rules and laws being passed and discussed. The landscape is chaotic and disorganized, with ongoing lawsuits and no single authority setting standards for all. With recent rule changes, NIL continues to look more different as time goes on.
As the buzz around NIL grows and deals get bigger, the pressure builds from athletes and coaches on schools to provide more deals. However, it is not always easy to coordinate high-level deals with large corporate sponsors. It takes time to figure out how realistic deals are and the work that goes into them.
Recent New Rules
Despite the difficulties, about a month ago, a rule change allowed schools to offer more assistance to student-athletes in the logistics of their deals with companies. This change makes it easier for schools to bring more deals to their athletes, as they now have the power to be more involved. While student-athletes still have complete control over their deals, they can receive extra help determining the terms of their desired agreements. Kat Jones, the Assistant Athletics Director and Student-Athlete Administration of NIL at UCF explains it as "being a party to it, without being a contractual party to it."
Shifting Attitudes and Approaches
With these changes, the attitudes and approaches of student-athletes are adjusting. Athletes are becoming more knowledgeable and eager about NIL opportunities. "Let’s look for authentic deals because then they will get excited. They get excited when it’s a brand they want to work with," Kat Jones said. Authenticity drives deeper engagement and satisfaction among athletes when it involves something they are passionate about. As time progresses these athletes have a better understanding and are better prepared, but still excited.
Athletes as Employees
A topic of ongoing debate is whether student-athletes should be paid directly by the school and consequently be considered employees. This scenario seems near in our future. NIL should still stick around to an extent because there is still value in it. However, this would change things tremendously in contracts and recruitment for college sports. These endorsements may start to be rolled into contracts as they are for coaches currently, but it will look different for each school.
This shift will have a significant impact on how athletes are recruited. Prospective student-athletes will now consider what else they will have to do outside of being a student and an athlete, and how much money they will make.
The Future of Traditional NIL
Overall, the landscape is ever-changing, and questions remain about how traditional NIL will fit into its future, particularly concerning exclusivity and school licensing. Schools may need to license NIL deals, which could limit the scope of what athletes can pursue. As NIL progresses, there is hope for more confidence in how to operate under these new changes and governance to avoid the chaos and lawsuits currently occurring.
Interested in learning more?
Listen to the Knox Talk episode on this topic, here!