Tuesday, May 2, 2023

Payment to college athletes: Name, Image and Likeness (NIL) Deals

 The recent changes in what college athletes can be paid for  (and in their ability to transfer freely between schools) has made it profitable for some football players who are eligible for the NFL draft to remain in school.  The NYT has the story:

How transfer, NIL rules thinned out NFL draft QB class: ‘It’s an anemic quarterback class’ by Kalyn Kahler

"the reason for the mid-to-late-round quarterback mass desertion has a lot to do with the growth of the transfer portal and name, image and likeness (NIL) deals.

"In April 2021, the NCAA changed its rules to allow transfers without sitting out a season. A little more than two months later, the NCAA announced its first-ever NIL policy, allowing college athletes to take deals with individual companies, like Bose, and sign deals with collectives affiliated with their schools.

"Collectives are generally made up of donor funds, and they offer contracts to athletes in return for services like autograph signings or event appearances. And in the second season of NIL, collectives are succeeding at incentivizing players at all positions to return to school, and most of all the most important position on the team.

“You’re not necessarily allowed to pay players to return. Like, that can’t be the reason,” said an executive for a collective affiliated with a West Coast university who, like others in this story, was granted anonymity in order to openly discuss details of the hush-hush world of NIL. “But you can talk about their potential when they come back, you’ll have significantly more NIL opportunities than maybe you had the prior year.
...
"You’re not exactly allowed to disclose what people are making,” said the West Coast collective executive. “It has not been laid out from the NCAA and a lot of schools on exactly what you can and can’t talk about. It’s very unclear in a lot of situations, so people naturally get uncomfortable because they don’t know the rules, especially coaches.”

"A veteran NFL agent who represented two draft-eligible Power 5 quarterbacks for their NIL deals said that one transferred to a new program this offseason with the understanding he would make a million-plus through that school’s collective. The agent said the other turned down an offer of more than a million in favor of a transfer to the best football situation, where he’s been promised an amount comparable to an NFL practice-squad salary (in the $200,000 range)."
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Related posts on (previously repugnant) payments to student athletes here.


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