The landscape of college athletics dramatically shifted in recent years, granting student-athletes the ability to profit from their own persona. This change, known as NIL, has sparked conversations and controversies, such as the case of Quarterback Matthew Sluka who cited unfulfilled NIL promises in his departure from UNLV in September 2024. But what exactly is NIL, and how does it work?
Defining NIL: Name, Image, and Likeness Explained
NIL is an acronym that stands for Name, Image, and Likeness. In essence, it represents an individual’s right to control and commercialize their own identity. For decades, college athletes were prohibited from capitalizing on their athletic fame. By joining college sports teams, they effectively forfeited their NIL rights. However, in 2021, a significant shift occurred. The NCAA, facing mounting pressure and evolving legal landscapes, altered its rules and state laws emerged, collectively restoring NIL rights to college athletes. Since then, student-athletes have been empowered to engage in sponsorship deals and various forms of commercial partnerships, leveraging their personal brand.
The Landscape of NIL Deals: Who’s in Charge?
The governance of NIL deals is a multifaceted system, shaped by a combination of university policies and state laws. The specific rules and regulations athletes must adhere to are dictated by these interwoven frameworks. In states where explicit NIL legislation is absent, the NCAA has delegated the responsibility to universities, tasking them with creating their own NIL policies for their student-athletes. These institutional policies often include stipulations such as mandatory business education or training for athletes before they can engage in deals, and restrictions preventing them from promoting certain categories of products or services deemed inappropriate by the university. State laws, on the other hand, primarily focus on preventing NIL agreements from being misused as inducements for recruitment, ensuring a level playing field and upholding the integrity of college sports. While direct payments from universities to student-athletes remain prohibited, the legal boundaries surrounding the involvement of university booster clubs and affiliated organizations in facilitating NIL opportunities can be ambiguous and vary by state.
Navigating the Business Side: Agents and Advisors for College Athletes
The evolving NIL landscape has opened up new avenues for college athletes, and with these opportunities come complexities. Recognizing the need for professional guidance, athletes are now permitted to enlist the services of agents and business advisors. These professionals can provide invaluable support in areas such as marketing strategy, navigating legal intricacies, understanding tax implications, and managing other business-related matters. Furthermore, many universities are proactively equipping their athletes with the necessary knowledge and skills to thrive in this new environment. This often takes the form of educational programs, including early-season classes and workshops focused on NIL law, fundamental business practices, and financial literacy, ensuring athletes are well-prepared to manage their NIL rights effectively.
Reporting and Compliance: Keeping NIL Deals Transparent
Transparency and accountability are crucial aspects of the NIL framework. To ensure compliance and maintain oversight, most colleges have implemented policies requiring athletes to disclose the details of any potential NIL deals to their respective institutions. In some cases, athletes must also obtain school approval before formally signing any agreements. This pre-approval process allows universities to review the terms of the deals and ensure they align with institutional values and policies. Moreover, many institutions reserve the right to prevent their athletes from endorsing or promoting certain product categories that may be deemed detrimental or conflicting with the university’s mission, such as alcohol, tobacco, or drugs.
The Patchwork of Regulations: Why NIL Rules Vary Across States
The current NIL regulatory environment is characterized by a lack of uniformity across different regions. While numerous states have enacted NIL laws or have proposed legislation to address this area, the specifics of these regulations are far from consistent. This state-by-state legislative approach has resulted in a patchwork of rules, reflecting the diverse priorities and objectives of local lawmakers. Some states have prioritized supporting local businesses through NIL opportunities, while others have focused on creating incentives to attract top athletic talent to universities within their state borders.
The NCAA has voiced concerns about this fragmented regulatory landscape. The organization has expressed apprehension that enforcing its own NIL rules in the absence of a comprehensive federal law could potentially lead to violations of antitrust regulations. Consequently, while the NCAA has advocated for a federal standard to provide clarity and consistency, there is currently no nationwide, unified set of NIL rules, contributing to the complexity and ongoing evolution of this space.
Examples of NIL Deals: From Sneakers to Mustard
Since college athletes gained the right to profit from their NIL, the types and scale of deals have expanded dramatically. Initially, perks might have included complimentary sneakers or workout apparel. However, the NIL market has matured rapidly, with deals now encompassing high-end fashion items, dorm room essentials, and substantial endorsement contracts.
For elite athletes, NIL has become a lucrative avenue. Guided by business mentors and leveraging financial advice provided by their universities, top-tier athletes have secured significant earnings. As of August 29th, On3, a prominent source for NIL valuations, ranked Shedeur Sanders, the quarterback for Colorado, as the leading figure in the NIL market, estimating his valuation at an impressive $4.7 million. This includes a continuation of his father’s endorsement deal with Nike, showcasing the potential for substantial earnings at the highest levels. On3 estimates that the top 20 athletes in their rankings each hold a minimum NIL valuation of $1 million, and even the 100th-ranked athlete boasts a valuation of approximately $583,000, demonstrating the breadth of the NIL market.
Major brands are actively seeking partnerships with athletes who possess a combination of strong athletic performance, a compelling social media presence, and business acumen. Leading sportswear companies like Nike, Adidas, and Under Armour have signed NIL deals with prominent athletes. Beyond athletic apparel, non-athletic brands such as T-Mobile, Sam’s Club, and Amazon are also tapping into the college athlete market, seeking to connect with student-athletes across diverse sports and universities.
While the most publicized deals often involve high-profile athletes, the vast majority of college athletes operate in a different segment of the NIL market. This hasn’t deterred a wide range of businesses, from local “mom & pop” shops to international corporations, from partnering with up-and-coming athletes across various sports and institutions.
Some of the most memorable NIL deals have emerged from creative and unexpected collaborations, capturing public attention and generating significant buzz.
Dienurst Collins, an offensive lineman at Lake Erie College, exemplifies this trend. He achieved both a NIL deal and a resurgence of internet fame through a partnership with Popeyes. Collins had previously gone viral as the “Popeyes kid” at age 9, and this connection to the restaurant chain made for a highly engaging and humorous NIL collaboration.
Decoldest Crawford, a wide receiver for Louisiana Tech, cleverly leveraged his unique name to secure a NIL deal while recovering from an injury. He partnered with a local, family-owned air conditioning business, creating commercials that played on the pun inherent in his name, resulting in a memorable and effective campaign.
Bijan Robinson, a former running back for Texas and now with the Atlanta Falcons, adopted a similar name-based approach. While at Texas, he launched his own Dijon mustard brand, “Bijan Mustardson,” capitalizing on his name recognition. Upon joining the Falcons, he continued to promote his mustard, establishing it as the official Dijon mustard of the team, demonstrating the long-term potential of athlete-driven branding.
Brands have also embraced athletes’ nicknames and personas. Ga’Quincy “Kool-Aid” McKinstry secured a NIL deal with the Kool-Aid brand shortly after the NIL rules were implemented, a natural and highly recognizable partnership.
Group NIL deals represent another strategy employed by companies. Reese’s Peanut Butter Cups, for instance, partnered with a collective of college football players named “Reese” from various universities, creating a campaign centered around the shared name and the candy brand. While basketball star Angel Reese was not initially part of this campaign, she has since become an ambassador for the brand in her own right, further expanding the reach and impact of the Reese’s NIL initiatives.
Humor and personality have also become valuable assets in the NIL space. Colorado lineman Tommy Brown partnered with Shinesty underwear, creating a series of tongue-in-cheek photos that highlighted his “farmer’s tan” and generated online amusement. Arkansas wide receiver Trey Knox included his dog, Blue, in a NIL deal with PetSmart, resulting in a heartwarming and highly engaging campaign that resonated with pet lovers and sports fans alike.
Sam Phillips, a gymnast from Nebraska, has prioritized partnerships with businesses that align with his values. As the first male athlete at Nebraska to come out as gay, he has intentionally collaborated with local businesses that celebrate Black and LGBTQIA+ communities. His partnerships have ranged from modeling underwear to promoting athletic tape for Our Colour, a company that produces tape in shades that better match darker skin tones, reflecting a growing emphasis on inclusivity and representation in the NIL landscape.
Phillips emphasized the personal and community-oriented nature of many of his NIL collaborations, stating, “It’s definitely more like [small and minority-owned businesses] are taking care of me. It’s a really face-to-face, very personal relationship.”
Conclusion
NIL has fundamentally reshaped the landscape of college sports, empowering student-athletes to benefit from their name, image, and likeness. From navigating complex regulatory frameworks to securing diverse endorsement deals, college athletes are now active participants in a dynamic and evolving market. As NIL continues to develop, it promises to bring further changes and opportunities to the world of college athletics, impacting athletes, universities, and the broader sports industry.
