How the NIL Has Changed College Sports
In July, 2021, the NCAA implemented a new policy, commonly referred to as “NIL,” or “name, image or likeness.” The rule allows college athletes to earn money from endorsement deals. Though many hailed the move as long overdue, contending that colleges and universities had reaped substantial financial benefits from athletes and athletic programs, the rule has forever altered the landscape of college football and of college athletics, with many alleging that the changes are not all for the best.
The Potential Upside of NIL Deals
Without question, for the athletes, the NIL represents potential financial gain and security. Though many of the athletes who benefit most from the NIL are scholarship students, already receiving a substantial benefit (the average tuition for an out-of-state student at a Division I school is over $30,000 per year), colleges have, particularly over the last quarter of a century, earned millions off of ticket sales and TV revenues. An NIL deal helps ensure that a college athlete who contributes to a team’s success (and accordingly brings monetary value to his or her school) is compensated for that.
There are concerns that the NIL deals may be too extravagant and that some of the athletes may not have the life skills to manage those large sums of money. However, statistics show that the average NIL deal falls between $1,000 and $10,000, and that the megadeals are the exception to the rule. Proponents of the NIL also argue that the premier athletes will face similar experiences when they transition to professional sports and that the NIL provides early exposure to marketing, branding and financial management. They also contend that the NIL ensures that athletes who suffer serious injuries in college still have the ability to benefit financially from their efforts.
Has the NIL Been Detrimental to College Sports
Opponents of the NIL make a number of arguments:
- The rule promotes already existing disparities in college sports, benefiting a handful of athletic programs—One study found that virtually all (98%) of the top NIL athletes play either football or basketball, and that the NIL almost exclusively provides benefits to male athletes.
- The NIL deals often take student athletes away from their studies—Many NIL deals require that the athletes make appearances or commit to other activities when they need to be studying.
- The NIL has led to the loss of team unity—With the advent of the NIL, as well as a change in the transfer rules, college athletes have, in essence, become free agents looking for the best deals. Accordingly, rosters can change dramatically from one season to the next.
- The NIL provides a disincentive to progress—Athletes who receive significant NIL money in college may have little impetus to work to get to the pros.
