Understanding Name, Image, and Likeness Legislation (“NIL”)
@yoursportsbusinessblog
CONTEXT:
Writing Project 3, Part 1: Op-ed
Writing Project 4, Part 1: Blog
PART ONE:
Understanding Name, Image, and Likeness Legislation (“NIL”)
This Week’s Topic: NIL!
The purpose of this blog is to provide a clear and basic understanding of NIL. In no way, shape, or form does this piece dive into the technicality of the topic. By merely scratching the surface, this blog will give you the basic background of what you need and should know about NIL!
What is NIL?
Name, Image, and Likeness (“NIL”) refers to how college athletes can receive compensation for their personal name, image, and likeness, while maintaining their amateur athletic status. This means that college athletes can generate revenue from product endorsements, brand sponsorships, autograph signings, and even social media posts. This concept was first introduced in 2019 by California Governor, Gavin Newsom, under the Fair to Play Act. Once this statute gained traction, NIL became a topic widely debated and motivated many lawsuits against the NCAA. After the Supreme Court’s ruling of Alston v. NCAA (2021) -- a suit regarding the limit of educational benefits for college athletes – the NCAA approved an “interim NIL policy.” This active policy allows NCAA athletes to profit from NIL if it complies with the policies of their school and conference. Many states such as Arizona, Colorado, Connecticut, Delaware, Florida, and Georgia have passed additional state legislation regulating NIL. Although many bills have been proposed, there are currently no federal laws regulating NIL.
Why is it important?
NIL affords college athletes the opportunity to monetize their personal brand and athletic career – something they have never been able to do before. Prior to the NIL era, athletes like Sabrina Ionescu, Zion Williamson, Reggie Bush, and Trevor Wallace were prohibited from selling autographs and taking endorsement deals. These well-known and accomplished athletes missed the chance to make millions before their professional careers. Thanks to NIL, this is not the case anymore. NCAA athletes can now generate an income while staying in school and competing in their sport. This ability helps offset the financial burden many NCAA athletes face from costly tuition rates, injury rehabilitation bills, and other non-educational costs such as food, lodging, and transportation.
NIL has also brought exposure to smaller schools like Historically Black Colleges and Universities (“HBCU'') and NCAA Division III schools. HBCU’s have historically struggled to fund their programs. By capitalizing on their athletes’ brands, HBCU’s can get the exposure they deserve but oftentimes lose to bigger, well-known schools. Colleges like Jackson State University have demonstrated this. Their former head football coach, Deion Sanders, was a strong advocate of NIL. He appreciated its ability to give his players a mic to be heard and a platform to be seen. After reaching out to sponsors and donors, he was able to entirely rebuild Jackson State’s program. He had a brand-new practice field built along with a new locker room. As a result, Jackson State fan attendance spiked and broke the Football Championship Subdivision record -- averaging more than 42,000 fans per game.
[Former Jackson State Head Football Coach, Deion Sanders]
Opportunities for DIII athletes are also growing. NCAA DIII athletes are prohibited from receiving athletic scholarships. This means DIII athletes can only rely on merit-based scholarships and government aid for financial assistance. With NIL, DIII athletes can use compensation earned through their name, image, and likeness towards costly tuition bills.
Diversity and inclusion have also increased in college athletics. NIL has created a level-playing field for female and male athletes across different sports. Endorsement and sponsorship deals have casted brighter lights on female athletes and less popular women’s sports like lacrosse, swimming, and beach volleyball. For example, the viewership for women’s march madness finals hit a record high. According to ESPN, the game averaged 9.92 million views – 4.5 million more viewers than last year.
What are the benefits of NIL?
The biggest advantage of NIL for college athletes is by far its economic benefit. NIL provides college athletes with a steady stream of income they would otherwise lack. Monetizing NIL through things like endorsement deals and personal appearances gives college athletes endless financial opportunities to capitalize on.
College athletes can also plan for their post-athletic careers. By saving portions of their NIL generated income towards retirement and other life savings, athletes can ensure long-term financial stability. This allows college athletes to be set up for financial success.
Aside from its economic benefits, NIL also provides college athletes opportunities for personal branding and entrepreneurship. NCAA athletes can use their increased visibility to reach a wider audience than ever before. With more followers and fans, athletes hold the power to influence their values and interests among many.
NIL also affords colleges and universities many advantages. Colleges and universities with reputable brand affiliations and expansive networks attract top recruits and help maintain current athletes from transferring. This, in return, contributes to higher graduation and retention rates.
What are some disadvantages of NIL?
Although there are many benefits to NIL, there are several drawbacks worth discussing. For example, some argue college recruiting has changed for the worse. Many high school athletes and college transfers are committing to schools with the best sponsorship deals rather than educational and athletic prowess. This altered decision-making prioritizes financial motive over an athlete’s love for the game and school.
With athletes able to transfer to different schools and pursue more advantageous NIL deals, fans and donors may also feel less connected to college athletics. This may result in a weakened fan base and loss of team loyalty. Progressively, players will be recognized individually rather than as an association of the team.
Team dynamics and coaching relationships may also be jeopardized. When a player gets more deals than one of his/her teammates – locker room drama is bound to occur. NIL may cause more unnecessary pressure for athletes who already have far too much on their plate.
Examples of athletes putting NIL to use
College athletes throughout the country have been leveraging their NIL to generate revenue, build personal brands, network with different industries, and even advocate for important social issues. University of Southern California’s quarterback and 2023 Heisman Trophy Winner, Caleb Williams, has made several sponsorship deals with established multi-million-dollar companies such as Alo Yoga and Beats by Dre. His deals are collectively valued at $2.6 million.
Williams has also strategically used his NIL platform to spread awareness regarding social issues like mental health. Back in the fall of 2022, Williams launched a PSA called “Seize the Awkward,” in partnership with the American Foundation for Suicide Prevention, the Jed Foundation, and the Ad Council. To further promote the importance of mental health, he also painted the suicide prevention number on his fingernails during a game (image shown below). Without NIL, Williams would have far less of a voice to advocate with.
[Pictured above: Caleb Williams, USC Quarterback and 2023 Heisman Trophy Recipient]
Angel Reese, a forward on Louisiana State University’s Women’s basketball team, has similarly leveraged her NIL. Currently valued at $1.3 million, her NIL makes her the highest-valued player in women’s college basketball.
Reese has used the profits generated from her NIL to advocate for women’s empowerment and underrepresentation through Instagram posts and promotional videos. She has also recently launched a new merchandise line, in support of female activism, called “unapologetically me,” on her website.
In addition to her social activism, Reese has used her NIL to demonstrate her appreciation for her teammates. After winning the NCAA championship title, she gifted her teammates custom purses made by Coach – one of her many sponsors among Calvin Klein and Bose. Rather than using NIL to individualize herself from the team, Reese used it as an opportunity to express unity and strengthen the team culture.
[Pictured above: Angel Reese, LSU Women’s basketball forward and All-American]
Key Points and Takeaways
College athletes can now make money for playing their sport – something that has never been done before!
Well-known brands like Coach, Alo Yoga, and Beats by Dre have partnered with college athletes and generated millions in revenue.
There are currently no federal laws regulating NIL.
NIL is an evolving topic – stay current and updated to learn how college students throughout the nation will be affected.
Thanks for visiting my blog! For those interested in a more in-depth explanation of NIL, please visit the following resources:
Journals:
Fort, Rodney. (2022). College Sports Governance: ‘Amateurism’ Enforcement in Big Time College Sports. Economics of Governance, 23 (3), 303–322. https://doi.org/10.1007/s10101-022-00279-w.
Jessop, A., & Sabin, J. (2021). The Sky Is Not Falling: Why Name, Image, and Likeness Legislation Does Not Violate Title IX and Could Narrow the Publicity Gap Between Men’s Sport and Women’s Sport Athletes. Journal of Legal Aspects of Sport, 31(2), 253–288. https://doi.org/10.18060/25602.
Sorbe, Josh. (2021). The NCAA’s Breaking Point for Equal Opportunity: A Title IX Perspective on Name, Image, and Likeness Sponsorship Legislation. Journal for the Study of Sports and Athletes in Education, 16 (1), 1–22. https://doi.org/10.1080/19357397.2021.1989280.
Websites:
https://www.ncsasports.org/name-image-likeness
https://theathletic.com/3301694/2022/05/10/nil-ncaa-definition/
Videos:
What is NIL and where did it come from? A quick history of the NCAA
PART TWO:
The situation that my Writing Project 4 (“WP4”) responds to is the discussion of compensation for college athletes. NIL is a very new and evolving topic. Most of the general public is unaware of what it is and how it affects college athletes throughout the nation. Through part 1 of my WP4, I hope to provide the public, especially those interested in college athletics, with a basic understanding of NIL. I do this by answering what it is, why it is important, how it is beneficial and harmful, and how athletes have implemented it in their athletic careers today.
My blog is situated in the common discourse surrounding NIL. When I first began researching the topic, I found many editorial and op-ed pieces of work. Most of these considered the advantages and disadvantages of NIL as well as its long-term effectiveness. However, I also encountered many different genres like academic journals and open letters – both of which I did not anticipate finding. These pieces expanded more on the legal and business concerns associated with NIL.
In WP4, my blog relates to the topics discussed in many of these genres by emphasizing the significance of NIL and its corresponding benefits and disadvantages to college athletes. I also explain how lawsuits concerning the compensation of college athletes motivated the NIL interim policy.
Although many of the ideas discussed in my WP4 emerged out of these discourses and shared the same schools of thought, my blog maintains a much less argumentative and more factual stance on the topic. I prioritize explaining the basic principles and fundamentals of NIL rather than taking a particular position on the subject.
In Part 1 of my WP3 submission, my intent is to argue and persuade a point rather than educate and inform. My op-ed aims to convince college athletes and coaches that NIL is not a sustainable system for the compensation of student-athletes. I do this by explaining how athletes will be more likely to transfer, team dynamics will change for the worse, and deals will be disproportionately given to male athletes over female.
Although I interact with similar ideas and concepts surrounding NIL, the role within the discourse is far different than it is in WP4. Nowhere in WP4 do I address the concern of the long-term effectiveness of NIL or offer a call to action. Part 1 of WP3 is categorized as more of an argumentative discourse, one directed towards individuals who already have a solid grasp on the issue. On the other hand, WP4 is more of a descriptive discourse, targeted towards those who lack knowledge on the subject.
Both my op-ed and blog focus on important, but distinct aspects surrounding NIL. The role of my op-ed is to pitch an effective argument and convince the reader to agree that NIL is not will be a long-term solution of compensation for college athletes. Meanwhile, the role of my blog is to educate and inform the reader what NIL is and why it is important. Although they have different intended audiences and motivations, they both respond and address concepts surrounding the same subject.