Many student-athletes will take advantage of NIL to run camps and clinics in their respective sports. While this has the potential to provide lucrative streams of revenue for many individuals, students will need to be mindful of various overhead costs associated with these ventures. Liability insurance, rental fees, legal costs and on-site medical staffing are just a few of the peripheral expenses that many student-athletes may not consider initially.  This should be a key component of every institution’s NIL educational efforts. Failing to consider these aspects of the business operation may cause student-athletes great distress down the road.

Along these same lines, athletic departments must remember that student-athletes who are active in the NIL landscape are essentially small business owners.  Since most student-athletes will have very limited experience in the business realm, the learning curve will be steep.  Many state bills mandate that institutions provide student-athletes with NIL education, but even in states where there is no educational mandate, it would behoove athletic departments to invest in educating their student-athletes in areas such as marketing, brand management, financial planning, debt management, budgeting, etc.  Spry’s extensive educational library can assist your institution in providing these resources for your student-athletes!

While Covid boosters appear to be safe for use, when it comes to NIL, boosters can certainly present a fair amount of risk.  While it is permissible for boosters to enter into legitimate business arrangements with student-athletes, institutions are likely to be held responsible when boosters attempt to use NIL as a recruiting inducement or as a means to circumvent pay for play restrictions.  Institutions will need to carefully scrutinize any NIL disclosure between student-athletes and institutional boosters and keep a safe distance from any appearance of impropriety.  Spry’s platform provides athletic departments with the ability to track booster NIL activities, flag disclosures that are above market value and address potential compliance issues in real time.

Speaking of disclosures…while non-disclosure agreements are extremely useful for protecting intellectual property, non-disclosure is not such a great thing when it comes to NIL.  For starters, in most places it’s the law, as the vast majority of states have NIL legislation that requires student-athletes to disclose NIL opportunities with their institution.  Additionally, when institutions fail to enforce disclosure, they lose the ability to capture valuable data on their student-athletes that could be beneficial to the students, as well as to the athletic department from a recruiting standpoint.  While it does add an additional layer of administrative burden, dedicated disclosure management should be a priority for all institutions. Spry offers a convenient, easy to use digital platform that can streamline the NIL disclosure process for overworked and understaffed compliance offices. 

While the ability to earn additional income through NIL is extremely attractive, student-athletes should be advised that spending too much of their time trying to “make it rain” can have extremely negative consequences for both academic as well as athletic performance.  Institutions will benefit by having a well-defined time management plan to assist students in their efforts to manage their priorities appropriately. Spry’s time management function can help bring order to your athlete’s chaotic schedules and also assist with NCAA time management requirements.

The issue of institutional marks has created a dilemma for athletic departments since the inception of NIL.  The NCAA’s initial proposed legislative package largely prohibited the use of institutional marks by student-athletes while engaged in NIL activities.  However, as was the case with most issues related to name, image, likeness, the interim policy adopted by the membership in July left the matter of institutional marks to be decided by state legislatures and individual athletic department policies.

At present, NIL legislation has been signed into law in 28 states. While these legislative actions have mandated certain aspects of NIL, state bills have protected the ability of schools to control the rights of all institutional logos and trademarked items. This has left the schools to determine if, and under what circumstances, they will allow their marks to be used.  

Initially, a number of institutions balked at the idea of student-athletes using the institution’s brand to promote their personal NIL ventures (although ironically, for years NCAA legislation has permitted the use of student-athletes in institutional promotions). However, the absence of NCAA legislation prohibiting this practice opened the door for some schools to take a more permissive, student friendly approach.  This created a boomerang effect that resulted in a number of athletic departments softening their stance on institutional marks to avoid becoming a target for negative recruiting.

While a handful of institutions remain at either extreme of the spectrum (i.e. allowing unfettered use of institution marks or instituting an all out ban) most schools have settled somewhere in the middle.  A review of institutional NIL policies across the membership reveals that most policies include a generic statement that the school may allow the use of institutional marks, subject to departmental approval.  This approach allows the school to avoid saying “yes” or “no” to the question. “Maybe” has become the position of choice, as this seems more palatable from a recruiting and PR perspective. Many institutions also indicate that student-athletes may have access to these marks only after paying a licensing fee. 

Below are a few examples from athletic department NIL policies:

“Consistent with policies regarding name and trademark use, student-athletes are not permitted to use marks or logos, including all forms of team-issued apparel and uniforms, in conjunction with NIL activities.”

“Use of trademarks and logos (including all aspects of the uniform) for NIL activities can only occur after obtaining a written agreement from either the Office of Trademark Licensing (authority dependent upon intended use).”

“Student-athletes may request the use of protected marks during the disclosure process before the activity occurs.” 

Regardless what policies exist in print however, patterns of how schools choose to handle these issues in practice will eventually emerge. How schools manage the use of their marks for NIL may become a referendum on how attractive they appear to prospective student-athletes and their parents. Given this, schools may wish to give careful consideration as to whether they adopt a marks-ist or anti marks-ist approach.

The 2021-2022 competitive seasons are off and running.  A big player in the “new normal” is the implementation of name, image, and likeness (NIL) legislation.  Student-athletes are now allowed to earn income that can be tied to their status as an intercollegiate athlete.  While this has the potential to be a great opportunity for some student-athletes, for example opportunities to have real experience in their chosen field of study and earn income while doing it.  Student-athletes can explore their creativity in ways that were once limited by NCAA rules that may have nothing to do with athletic status.  

NIL can also present unintended consequences such as outside influences/distractions which can be detrimental to the team dynamic and can significantly impact performance.  

Consider the following scenarios:

A student-athlete is receiving income to promote a product due to their position on a team and that position changes with a new game plan, or another player earning the spot  This will cause additional  tension between player and coach as well as player and teammates. And the student-athlete could lose the income in the process.  

A marginal player is considered desirable from a marketing standpoint due to his/her already established social media presence, personality, charisma, etc.  Being a member of the team enhances marketability and this student-athlete may receive more attention and possibly income from outside sources even though they are not contributing on the field.  

Teammate errors made during the game (ie missed pass, missed tackle, etc) could result in a players overall stats being affected, thus impacting their potential for income.  This could lead to confrontation between teammates and damaging team unity and focus. 

Demands placed upon student-athletes to attend photo shoots, promotional activities, autograph signings, etc at the commercial location can detract from team and/or academic responsibilities.  

Coaches’ decisions regarding a player’s position on the team could significantly impact marketability and could lead to problems on the whole team or a possible transfer to another institution.  

Student-athletes will have to balance time demands and expectations must be clear before any NIL agreement is set.   Record keeping by coaches and staff will be critical to ensure compliance with team and department rules.  

Coaches, sport administrators, compliance staff as well as those in marketing and social media departments must be in sync with each other to be sure to present a consistent and common message to student-athletes as they navigate the NIL Era.  Athletic Department Handbooks and Team Rules/Charters should include clear policies and procedures and should be signed off on by the student-athlete at the beginning of the season.  The Development Staff will also need to be trained on the rules and guidelines surrounding NIL since they are quite often the first point of contact from a booster who is interested in working with a student-athlete.  

The NIL process is new for everyone.  Athletic departments are working to provide education and guidance to student-athletes and coaches.  This will be a learning experience for all and support will be necessary to manage the challenges as they are presented.

With student-athletes back on campus and the return of fall sports, many schools have reported an uptick in NIL deals. Media outlets over the past few weeks have been highlighting major NIL opportunities, ranging from students signing endorsement deals with major apparel retailers, fast-food chains and even airline companies. With football stadiums at full capacity, and school spirit returning to full bloom, there is no surprise why businesses would want to work with these student-athletes.

If you are reading this and thinking to yourself, “we are certainly not in the same boat as these large institutions,” you are not alone. Majority of institutions find themselves in your shoes.

However, just because student-athletes are not being approached by businesses or boosters to sign NIL deals, does not mean that these opportunities are not available. Student-athletes from ALL types of institutions deserve to be empowered to understand that these opportunities exist. In order to empower your student-athletes, they need to be provided with the necessary resources to guide them.

All athletic departments have the ability to empower their student-athletes through NIL education. Providing content that illustrates how student-athletes from similar backgrounds or institutions are finding success through NIL will provide valuable insights for your student-athletes.

Even in the first two months of NIL, we have seen student-athletes from many different levels (from lesser-resourced institutions, Olympic sport athletes, or even a limited social media following) have success in NIL opportunities. Here are two NIL opportunity types that ALL of your eligible student-athletes should be aware of and consider:

1. Promo codes via social media posts = low risk and mutually beneficial
   • Many student-athletes have utilized the promo code approach to capitalize on their NIL. For student-athletes who may not have tens of thousands of followers, they still may be able to benefit from using promo codes. For example, a student athlete may have a small following that consists of mostly students on campus. Reaching out to a campus-located popular restaurant could be a great way for a student athlete to use their platform to increase visibility for the restaurant.
   • Additionally, businesses will be more inclined to say yes to this type of opportunity, as it is low risk and can generate more business for them.
2. Camps/Clinics/Lessons – student-athletes can monetize their skillset (or craft)
   • Every student athlete has the opportunity to return to their hometown and share their expertise with potential future athletes. Whether it is a one-off tennis lesson for a child of a family friend, or a 50-attendee basketball camp, student-athletes of all sports and levels will be able to utilize their skills and experiences.

Even if these opportunities may not result in four-digit contracts, they still can be extremely meaningful to your student-athletes. These deals yield real-life business experiences that student-athletes can carry with them throughout the rest of their lives. College classrooms are tremendous ways to learn, but there is no better learning opportunity than a real-world experience. Now is the time to provide your student-athletes with insights and tools to help them realize their potential.

Name, Image and Likeness has dominated the conversation within intercollegiate athletic circles for much of the past year.  Now two months into the NIL era, we are starting to identify where some of the gaps exist within the current process.  One of those areas seems to be around education. 

From the student perspective, NIL presents a tremendous opportunity and potentially endless new revenue streams.  However the message across the board from student-athletes is that they need help! For many students, most of whom are likely not well versed in the ways of business, NIL is proving to be quite overwhelming.  Every student-athlete who engages in any NIL opportunity essentially becomes a small business owner.  With that comes a whole host of responsibilities that will likely require a basic knowledge in areas such as tax liability, financial planning, legal liability, contract negotiation, marketing and insurance, just to name a few. This would be daunting for most adults regardless of our level of experience.  Obviously, since very few college students come to campus with extensive knowledge in many of these areas, they will undoubtedly need educational support in order to protect themselves and avoid missteps that could be very costly down the road. 

From the institution’s perspective, one of the questions that has been repeatedly asked is, what exactly is the school’s responsibility as it relates to educating their student-athletes about NIL?  Some have argued that the institution has a duty to prepare their student-athletes for life and that NIL education falls squarely in line with their overall educational mission.  Others, however, believe now that students have the opportunity to monetize their own personal attributes independent of their school, with that comes the responsibility to manage their own affairs, including educating themselves appropriately.  

NIL legislation has solved that dilemma in many states by mandating that institutions provide some level of education for all student-athletes.  Of the 29 states that have enacted NIL legislation, seven (Florida, Georgia, Kentucky, Louisiana, North Carolina, Tennessee and Texas) have language in their statutes that either requires or strongly encourages education.

For example, Florida was one of the first state NIL bills to go into effect.  Their legislation (SB 646) stipulates that schools must provide a five-hour financial literacy workshop at the beginning of every student-athlete’s first and third year that covers the topics of financial aid, debt management, time management, budgeting and an overview of available academic resources at the institution.  The other states with requirements have similar stipulations for educational content.  

• Kentucky and North Carolina are unique in that while the other states ratified bills through their legislature, Governors in these two states implemented NIL guidelines via Executive Order. 
• Kentucky, however, is the only state that incorporated social media and brand management education into their curriculum.  
• North Carolina has many of the same content areas as the other states, however unlike Florida, Georgia, Kentucky, Louisiana, Tennessee and Texas who have mandated these efforts, North Carolina’s Executive Order only recommends that this education be provided, but stops short of requiring it.  

Even in these states, however, is it enough and does the legislation focus on the right things? Critical areas such as liability and risk management are not a part of the required educational content in any state. Only one state (Kentucky) requires education around brand management, a vitally important aspect of NIL.

Below is a chart that summarizes the educational requirements in each state:

NIL Education Requirements by State

***Recommended but not required

Of course, many institutions will opt to provide education to their student-athletes even in states where there is no requirement to do so.  A number of departments plan to leverage relationships with business and professional schools on their campuses while others have outsourced this responsibility to third party entities. However, developing this content and delivering it en masse to large groups of student-athletes isn’t cheap.  This has left many athletic departments wondering if they can afford to develop robust educational programming for their students.  Others, on the other hand, wonder if they can afford not to.

However schools choose to address this critical issue, it seems clear that there is an appetite for more guidance among student-athletes and parents.  How institutions respond to this desire for information may directly impact their ability to attract student-athletes and build successful programs.

Click here to learn more about the educational offerings and functionality of the Spry platform.