The evolution of social media has developed at warp speed, forcing celebrities, musicians, and businesses big and small to take a crash course in monetization.
Up until 2021, this social media whirlwind wasn’t an issue for student-athletes because how they capitalized and monetized social media was heavily regulated. However, with sweeping motions from state lawmakers in 2021, athletes were suddenly able to monetize their Name, Image, and Likeness (NIL), which totally and completely changed the game.
What is Name, Image, Likeness (NIL)?
Name, Image, and Likeness (NIL) refers to student-athletes rights to profit from their personal brand. The NCAA’s NIL rules previously prohibited athletes from earning money through their brand. However, they can now enter endorsement deals, sponsored content agreements, and social media partnerships to create revenue that was previously inaccessible.
The NCAA’s NIL rules enable athletes to capitalize on their fame while providing opportunities for financial gain and personal growth beyond their athletic scholarships. NIL not only provides financial opportunities for athletes but also transforms how they can engage with fans, build communities, and leverage their talents off the field.
Name, Image, Likeness Policies and Regulations
However, it is not without its regulations, and athletes must adhere to strict policies that govern NIL activities through both NCAA regulations and state legislation. While colleges and universities are developing policies and practices to support athletes in navigating NIL opportunities, athletes are solely responsible for always adhering to all policies:
- State NIL Legislation
With 32 independent States, enforcing State legislation on NIL can vary, introducing additional regulations. Athletes need to understand and comply with both NCAA guidelines and their state’s specific NIL laws to ensure they avoid potential penalties or eligibility issues.
- NCAA NIL Rules and Regulations
NCAA rules and regulations govern collegiate athletics, setting standards for eligibility, recruitment, and NIL activities, as well as maintaining a balance between athletics, academics, and brand management while protecting the collegiate sports landscape. Effective August 1st, 2024, the NCAA will also enact a new policy with four distinct student protections:
- Voluntary registration to a database that helps athletes make informed decisions about representation, service providers, and financial advisors.
- Disclosure agreements require de-identified athletes to disclose to schools any NIL contracts that exceed $ 600 USD, which will work within the database to help athletes understand the monetary valuations of their NIL.
- Standardized contracts and contrast education to help athletes understand legal obligations and contract red flags.
- Comprehensive and ongoing NIL education for athletes to empower autonomy.
How NIL Benefits Athletes and Levels the Playing Field in 2024
Governing bodies work simultaneously to create a more inclusive and sustainable sports ecosystem, which ensures that NIL opportunities are accessible to all athletes and that the benefits are distributed equitably. With all athletes having the opportunity to capitalize on their name, image, and likeness, there is now an equal opportunity to build their brands, engage with fans, and secure their futures through new avenues.
- Equal Opportunity: Athletes from smaller programs or less-publicized sports now have a platform to showcase their talents and attract sponsorship deals. This means that a talented athlete from a Division III school can earn just as much as Division I with the right marketing regardless of their Division ( I, II, or III).
- Financial Support: NIL also provides financial opportunities for athletes who may not have professional sports careers ahead of them, helping them support their education and cost of living while reducing the burden of student loans.
- International Athletes: A new federal bill, the Name, Image, and Likeness for International Collegiate Athletes Act, aims to grant international student-athletes the same NIL opportunities as their U.S. counterparts. Currently, F-1 visa restrictions prevent these athletes from engaging in active NIL deals, which impacts over 25,000 international athletes in the NCAA.
The Role of Social Media in Name, Image, Likeness (NIL)
Platforms like Instagram, TikTok, and Twitter allow athletes to communicate directly with fans, share personal stories, and enhance their marketability tenfold. By cultivating a strong SM presence, athletes can build large community and fan-based followings that ultimately attract endorsement deals and increase their earning potential.
Social Media partnerships and collaborations give athletes the opportunity to work with brands that share their values to promote products or services that ultimately strengthen their visibility and their personal brand. These partnerships can provide huge financial benefits and can equally help athletes build their personal brands beyond the sports arena.
To maximize their NIL opportunities, athletes should:
- Consistency: Regularly update social media profiles with relevant content, sports highlights, and personal behind-the-scenes of day-to-day training and life.
- Values: Partner with brands that align with your values and interests, not just those that follow dollar signs. Authenticity will help you play the long game with your NIL.
- Integrity: Upholding the values of sportsmanship to maintain a positive reputation and build trust with fans and sponsors. NIL activities cannot conflict with commitments to your team, academic responsibilities, or governing policies (which would carry irreversible consequences) – ever.
By understanding and embracing NIL, student-athletes can maximize their potential both on and off the field, shaping the future of college sports and paving the way for the next generation of athletes.
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