Over the years there has been a whirlwind of opinions, statistics, and arguments on whether or not student-athletes should be paid or be able to make money off of their name and likeness. It has seemed like an endless battle with no change in sight. But now, the NCAA allows NIL for student-athletes. In 2020: COVID-19 swept the globe, everyone is working from home, and sports halted. It seems like nothing is impossible at this point - even changing the rule book on allowing student-athletes to get paid.
The NCAA Board of Governors has decided to allow their student-athletes to make money off their name and likeness with third-party endorsements. Companies and brands can now hire college athletes to represent their brand directly. The decision still must pass a vote at the NCAA conference, but it is expected to pass. If passed, they plan to roll-out this rule change in January of 2021.
Let’s break down the facts:
Companies may now work directly with student-athletes. They no longer have to go through the athletic department to get told they can only use the coach. They can work and hire the player directly. The player would be allowed to use a marketing agent to handle their deals. This will also allow for a side business too. For example, if an athlete is a recording artist or painter, they will be allowed to open up their own business under this deal as well.
There are some rules and limitations the athlete must follow if hired to represent a brand. If a player is hired, they are being hired for the likeness, not the school. Due to this, they are not allowed to utilize the team uniform or the school or team's logo.
We know that many in the media have been outspoken clamoring for this change for years. A few of these media types are even former players - maybe believing that they were not given enough opportunities to make money in their college days. The truth is that they did get money - in the form of a reduced or even completely free college education. Scholarship athletes not only get a chance to establish the benchmark for the rest of their lives, but most get perks that go way beyond tuition, which left all the rest of the everyday collegians green with envy.
Athletic nutritionists give athletes counsel on their free 24-hour meals, academic support staff are on hand to assist with their classwork and scheduling, and trainers and medical personnel are on call to maintain their health. This package at a simple state school is a $150k benefit, and at private schools that number could easily double. Ask any of the thousands of kids annually entering the workforce with student loans about this non-benefit that athletes receive.
The NIL legislation is poorly attempting to give athletes a chance to make some money while in school. While it should have simply allowed them to have a job, the die is cast now. Stopping aggressive recruiting boosters from slipping potential signees cash will now be not only impossible - but seemingly legitimate. As a 35-year vet in the industry, it is almost unthinkable for me to see our firm recommending a 17-21-year-old to one of our clients for any endorsement opportunity. The odds are overwhelming that this kid will repeat the mistakes of almost every collegian at some point in their four years on campus, and social media will undoubtedly capture the embarrassment. Special athletes in basketball and football (the overwhelming majority of kids impacted here) will be gone in 1-3 seasons taking their loyalty to their new city.
It is a wild west of a mess, with the only legitimate fix being a step that seems unlikely in this age of the toothless NCAA. If all monies earned through NIL were registered with the school and placed into a fund delivered at graduation, then some level of reasonableness might be restored. The SEC might lose a few recruits, but for the 2% of athletes this new law truly impacts, it might provide just the incentive needed to have collegiate sports deliver what is most important in this story - a real chance for life after sports.