Where is NIL headed?
Since July 2021, NIL (Name, Image, and Likeness) has changed its rules allowing college athletes to monetize their personal brand. This means athletes can now participate in endorsements, sponsorships, personal appearances, social media posts, and so much more. Although these rules continue to evolve and student-athletes are presented with so many new opportunities, it may be more complex than it appears.
Future of NIL rules:
In a new house ruling, the NCAA and its five power conferences have agreed to allow schools to directly pay players in the next few years. These power schools will now have to add about $25 million to their budgets in order to pay each individual athlete. While the division of these payouts is still unclear, this new expense will be fixed, and it will be capped. In addition to this payout, athletes with the right following and status can still monetize on top of their fixed amount. They will be able to negotiate deals that are school against school or within the school.
What does this mean for recruiting?
With NIL rules developments comes an impact on recruiting. Questions have been raised on the influence payouts will have on students when picking schools. However, having schools directly pay athletes can help minimize recruiting advantages if all schools have standardized compensation per team and level of athletes. So, with a base compensation of NIL through the schools, it becomes a question of what brands are now in play.
“Is the student-athlete going to look at this and say, I’m going to choose one school over another, the money initially is the same, but I can get more endorsement money over here,” Brandon Parks, Associate General Manager at Vol Network, regarding recruiting incentives.
Even with standardized compensation, there is still room for some recruiting incentives. While brands can’t bribe athletes directly, students may potentially choose a school where they feel they can maximize their earnings. A school with larger markets or where they have more visibility can sway an athlete. Even so, NIL is now closer to leveling the playing field in recruiting and reducing the advantages some schools have.
What does NIL look like moving forward?
As new developments occur and uncertainty still lies, NIL is taking steps in the right direction.
There are growing opportunities for players as more brands have become comfortable with NIL. And, as athletes begin seeking more authentic partnerships that align more with their personal brands, new ideas other than social media posts or product endorsements are being used.
“We are seeing brands do things with student-athletes in a creative way. How our student-athletes can give back to the community, how they can include youth, and brands want to be associated with those kinds of things,” Brandon Parks, Associate General Manager at Vol Network, states explaining ways brands are involving themselves with athletes.
There are more options for partnerships than making a brand its total identity a player. By making deals based on their values, athletes can seem more genuine to the public. Doing events like signings or special appearances will leave a positive impact on the community.
If you’d like to learn more on this topic, listen to our podcast episode, Where is NIL headed?