What is NIL in College Sports
For the last few years, the NIL has been one of the main topics in college sports. When college athletes were permitted to receive pay in 2021, they received these payments through NIL.
For those still unsure how this payment system works, here’s a breakdown of what’s NIL in college sports. Read everything about NIL below.
What is NIL in College Sports?
NIL in college sports is an acronym that stands for “Name, Image, and Likeness.” In 2021, the NCAA changed its rules that allowed college athletes to receive payments without losing their eligibility to compete.
College athletes can now receive sums of money from their name, image, and likeness. Many top college athletes are now making upwards of millions of dollars from this new ruling.
Ways College Athletes Make Money Through NIL
There are five ways that a college athlete can make money through NIL:
- Endorsements and Sponsorships
- Social Media Influencing
- Merchandising
- Appearances and Camps
- Partnerships
Endorsements and Sponsorships
The highest-earning college athletes make most of their money through endorsements and sponsorships. Companies pay athletes to promote their products or services.
This can involve social media posts, wearing branded gear, or other forms of content creation. For example, Colorado’s starting quarterback, Shendeur Sanders, is among the highest-paid college athletes, receiving money from multiple endorsements and sponsorships.
Social Media Influencing
The top college athletes in the US have a large social media presence on platforms like Instagram and TikTok. Through the NIL, these athletes can be paid for sponsored posts, collaborations, or other forms of content.
Before 2021, college athletes with large social media followings could not receive payments from these websites. Due to prior NCAA rules, these sites could not give college athletes money for their social media accounts.
Any athlete caught receiving payments before 2021 would lose eligibility to play in their respective sport.
Merchandising
For years, the NCAA and universities used college players’ likenesses to sell various types of merchandise. This system made billions of dollars annually, and college athletes saw no money from these purchases.
After the NIL rule change in 2021, college athletes have a right to profit from merchandising. Some athletes now make money using their name or likeness from personal merchandise, such as clothing or autographed items.
Anytime a college uses an athlete’s likeness, they must be compensated.
Appearances and Camps
It’s a common practice for athletes to make various appearances and be part of camps throughout their collegiate careers. Before 2021, athletes were obligated to make appearances and participate in or run youth training camps without compensation.
Now, college athletes must be compensated whenever they are asked to appear or participate in youth camps.
Gone are the days when players like Johnny Manziel(not so secretly) earned money under the table through appearances.
Partnerships with Collectives
Some schools have NIL “collectives,” which are donors and boosters that support the school. These “collectives” provide deals and opportunities for athletes through local businesses and community events.
Before 2021, many college boosters or sponsors conducted illegal transactions with college athletes. These scandals made national news and often ended in fines, dismissals, and the loss of eligibility.
Now, with the new NIL rules in place, college athletes can be legally paid.
Do All College Athletes Receive Money From NIL?
NIL is a way for college athletes to make money independently, in addition to any scholarships they possess. However, the extent and structure of NIL deals vary widely across sports and the popularity of each athlete.
