What is “NIL”?

“NIL” stands for name, image, and likeness. It refers to the rights of college athletes to profit from their personal brand by earning money through endorsements, sponsorships, social media, and other opportunities that utilize their name, image, or likeness. Essentially, it allows student-athletes to be compensated for their fame and popularity, which was previously prohibited by NCAA rules.

History of NIL

In June, 2021, the Supreme Court unanimously ruled in NCAA v. Alston that the NCAA was not legally allowed to limit any education-related payments to students. From there, the NCAA deferred to states, who created their own NIL rules. Where a state didn't pass a law, schools changed their own rules.

Two things remain disallowed by NCAA rules:

1) you can't pay a player, and,

2) no quid pro quo. 

Players aren't supposed to get any compensation tied for performance, and recruits cannot sign any NIL deal contingent on going to any particular school.

How do players make money?

Players can make money a number of ways, including but not limited to:

  1. Endorsement Deals: Athletes can sign contracts with brands and companies to promote their products or services. This can involve social media posts, commercials, appearances, and other promotional activities.

  2. Social Media Influencing: Many athletes leverage their large social media followings to earn money through sponsored posts, brand collaborations, and advertisements on platforms like Instagram, Twitter, TikTok, and YouTube.

  3. Merchandise Sales: Athletes can create and sell their own branded merchandise, such as clothing, accessories, and memorabilia. This allows them to directly capitalize on their personal brand.

  4. Appearances and Camps: Athletes can be paid for making public appearances at events, such as speaking engagements, autograph signings, and hosting sports camps or clinics.

  5. Content Creation: Some athletes produce and monetize their own content, such as podcasts, video blogs, and online tutorials, earning revenue through advertisements, sponsorships, and viewer subscriptions.

  6. Licensing Deals: Athletes can license their name, image, and likeness for use in video games, trading cards, and other media, earning royalties from these agreements.

These opportunities allow college athletes to generate income while still maintaining their amateur status, providing a new financial dimension to their athletic careers.