NIL Is Set To Reshape College Athletics

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With laws across more than a dozen states allowing student-athletes to earn money from usage of their Name, Image, and Likeness (NIL) slated to go live today, the NCAA voted yesterday to approve policy changes enabling schools outside of those states to determine how to enact their own rules.

The result? A monumental shift in amateur athletics, where every single NCAA student-athlete in the country is now eligible to earn money, goods, and services in exchange for usage of their Name, Image, and Likeness (NIL).

From now on, you’ll see athletes hosting camps, signing autographs, building podcasts, streaming on twitch, acting in commercials, posting on social media, and much, much more — eligible to earn money on all of it for the first time.

Several NCAA student-athletes have already announced deals just a few hours into the new world of amateur athletics.

• University of Miami QB D'Eriq King & defensive back Bubba Bolden signed NIL deals with College Hunks, a junk removal and moving company with headquarters in Tampa, Florida. Each player will be paid $20,000.

• Fresno State twin basketball players Haley & Hanna Cavinder, who have more than 3 million followers on TikTok alone, signed an endorsement deal with Boost Mobile — announcing the partnership in Times Square at midnight.

• Nebraska basketball players Trey McGowens & Bryce McGowens announced a podcast called “Off Court,” sponsored by a local bar in Lincoln, Nebraska.

• Auburn QB Bo Nix signed an endorsement deal with Milo’s Sweet Tea, posting an Instagram picture to announce the partnership.

More deals have been announced, but you get the point, with over 460,000 NCAA student-athletes and millions of different opportunities, the monetization of NIL is (literally) just getting started.

Over the next few months, we’ll see a variety of approaches. Some athletes will sell t-shirts and sign autographs, while others might appear in commercials and make 7-figures through social media posts. There isn’t a right or wrong approach, necessarily, but in my mind, it’s not even really about that.

People love to talk about how top-tier players (think Alabama’s QB or the Heisman winner) will benefit the most, which is true but neglects to address that the range of possibilities is endless. For example, a Division III swimmer can now give lessons & hold camps during the summer, potentially earning enough money to support themselves financially throughout the year.

My point being, the first 7-figure endorsement deal will shock a lot of people, but the focus should always remain on the ability of *all* student-athletes to capitalize on the basic rights that the NCAA has long withheld under the guise of “amateurism.”

While most of the NIL conversation typically revolves around student-athletes cashing in, or the NCAA’s long-standing resistance towards compensation, I also think this is impactful for local businesses situated within small college towns.

The truth is, outside of big-time college football/basketball players or athletes that have large social followings, more than 99% of the 460,000+ college student-athletes will see their NIL ability concentrated by geographical location.

A local bar in Fargo, North Dakota might pay an NDSU football player a few hundred dollars for an appearance. Or maybe a car dealership in Raleigh, North Carolina, compensates an NC State baseball player for periodic autograph signings.

But in the end, rather than providing free labor with the inability to capitalize financially, these partnerships align the incentives of both small, local businesses & student-athletes, creating a win-win scenario.

The part I’m most interested in watching? While student-athletes are busy hiring agents, signing deals, and building their brand, the impending arms race between big-time college athletic departments in recruiting is going to be fascinating to watch.

Here’s just one example:

Things will move fast. This is only the beginning. But as always, I’ll do my best to follow the trends, analyze everything, and keep you all up to speed as things progress.

Have a great day. I’ll talk to everyone tomorrow.

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