College athletes weren't always allowed to make money off of their athletic ability. It wasn't until 2021 that the NCAA changed the rules to allow students to profit off of their “name, image and likeness,” otherwise known as NIL.
What exactly is NIL?
“NIL” stands for “name, image, and likeness”; it refers to a person’s legal right to control how their image is used, even for commercial purposes. In college, student athletes have long been prohibited from making deals to profit from their fame, so they gave up their NIL rights when signing with college sports teams. Three years ago, a combination of NCAA rule changes and state laws restored NIL rights to college athletes, and they have been making endorsement deals ever since.
Who oversees the agreements?
A combination of school policies and state laws dictate what deals athletes can agree to. In states without oversight, the NCAA has universities write policies for their own athletes. Some common school requirements are that athletes get business advice or training before making deals, or preventing them from endorsing certain products. State laws focus primarily on preventing NIL deals from being used as recruiting tools. Schools can’t pay students directly, but some states have murky laws about how far a school’s booster club can get involved.
Do athletes have agents or commercial advisors?
Yes, all athletes can hire professionals to assist with marketing, legal matters, tax laws, and other business issues. Many schools also offer training and resources to athletes directly, often in the form of early-season classes on NIL law and basic business practices.
Do athletes have to inform their school or other authority about their agreements?
Most colleges have policies requiring athletes to disclose the details of any potential deals with their schools, and some must obtain approval from the school before signing. Several schools reserve the right to prevent their athletes from advertising certain products, such as drugs and alcohol.
Why do the rules differ between areas? Will that change?
While several states already have NIL laws in place or have proposed bills to implement them, the content is far from uniform. As with any state legislation, local lawmakers have taken different approaches to prioritize local businesses and incentivize top athletes to choose colleges within their borders.
The NCAA has expressed concern that without a federal law, enforcing its own NIL rules could violate antitrust rules, so while the organization hopes Congress will pass a federal rule, there is no national set of rules.
What types of deals are athletes making?
From free sneakers and workout gear to high-end apparel and dorm room essentials, the benefits for college athletes who sign NIL deals have skyrocketed since student-athletes won the right to cash in on the publicity they bring to their schools.
The biggest stars, guided by business mentors and financial advice provided by the school, have capitalized on it. On Aug. 29, On3 ranked Colorado quarterback Shedeur Sanders as the current NIL market star with a whopping $4.7 million valuation, including a sequel to his father’s Nike deal. The site estimates that each of the 20 players at the top of its list is worth a minimum of $1 million. And by the same calculation, even the 100th-ranked athlete was worth $583,000.
Big brands are eager to shell out money for athletes who combine a strong social media presence, business savvy and on-field prowess. Top athletes have signed deals with Nike, Adidas and Under Armour, while non-sports brands like T-Mobile, Sam's Club and Amazon are attracting students across the country.
Naturally, the vast majority of college athletes don't meet that threshold, which hasn't stopped companies from small local shops to international brands from partnering with promising students across all sports and at a variety of schools.
Some particularly extravagant offers have enthralled both athletes and companies beyond their usual audience.
Dienurst Collins, an offensive lineman at Lake Erie College, landed a contract and a second round of internet fame when he signed a contract with Popeyes, where he went viral at age nine for leering at a stranger who recorded him in the restaurant and then posted the video.
The towering Crawford leveraged his name to make some extra money while he was injured. The Louisiana Tech wide receiver teamed up with a family-owned air conditioning company to make an ad based on the pun.
Running back Bijan Robinson took a similar approach to capitalizing on the name while playing for Texas. He began selling Dijon mustard, marketing it as Bijan Mustardson and selling it in Texas. When Robinson joined the Atlanta Falcons, he brought the brand with him and now promotes it as the team's official Dijon mustard.
Brands do not discriminate based on first name. Ga'Quincy “Kool-Aid” McKinstry struck a deal with his nickname brand shortly after the ruling allowing NIL deals became known.
Other corporate strategies for NIL have been to sponsor multiple athletes at once.
Reese's Peanut Butter Cups didn't limit itself to one athlete, team, or even school when choosing its NIL offerings. Instead, the candy brand partnered with a dozen students from Texas to Delaware who apparently share just two traits: playing football and having the last name “Reese.” Angel Reese didn't appear on the original list, but she's since become a brand ambassador in her own right.
Many deals are based less on an athlete’s individual story than on his or her ability to make people laugh, like Colorado lineman Tommy Brown, who stripped down to model Shinesty underwear in a series of tongue-in-cheek poses that emphasized his farmer’s tan. Arkansas wide receiver Trey Knox brought his dog, Blue, into a deal with him. PetSmart sponsored both, in a move that generated a wave of online engagement.
Gymnast Sam Phillips, the first male athlete in Nebraska to come out as LGBTQ+, has worked with many local businesses, but he told ESPN he was particularly excited to partner with companies that celebrate Black and LGBTQ customers. Before moving to Illinois, he modeled everything from underwear to athletic tape, the latter of which he made for Our Colour, which makes tape that matches darker skin tones than many brands offer.
“It's definitely more like [small and minority-owned businesses] “They're looking out for me,” Phillips said. “It's a very personal, face-to-face relationship.”
