Name, Image, Likeness: How College Athletes Can Cash In on Their Fame 

College sports have changed dramatically in the past two years. Thanks to a landmark Supreme Court ruling and new NCAA rules, college athletes can now earn money from their name, image and likeness (NIL) without losing their eligibility. This means they can sign endorsement deals, sell autographs, appear in commercials, create their own brands and more.

But how does NIL work and what are the benefits and challenges for college athletes?  

Here are some key points to know:

• NIL varies by state and school. There are a number of states that have laws in effect that dictate how college athletes can profit from their NIL. In states without NIL laws, schools were able to create their own policies, which led to a wide variety of rules regarding NIL even between schools in the same state.  Some athletic conferences may also have reporting requirements. However, On June 27, 2023 the NCAA released new guidelines for their NIL rules when those rules conflict with state laws and regulations. The NCAA memo states that “If a state law permits certain institutional action and NCAA legislation prohibits the same action, institutions must follow NCAA legislation.” Given this uncertainty between state laws, school policies, and the NCAA legislation, athletes should consult with their school compliance officers and legal advisors before engaging in any NIL activities.

• NIL opens up new opportunities and revenue streams. College athletes can now leverage their popularity and fan base to earn money from various sources. Some athletes have already landed lucrative deals – over $1 million  - in endorsements with major brands, making it more profitable to remain in college as opposed to turning pro. Others have partnered with local businesses, nonprofits or online platforms to promote their causes or products. Athletes can also use their social media influence to attract sponsors and followers. In many cases this can level the playing field between men and women athletes, and between major revenue sport athletes and athletes in lesser-known sports. Some of the top money earners are women and athletes who do not play football or basketball.

• NIL requires careful management and planning. Earning money from NIL is not as simple as signing a contract or posting a selfie. Athletes need to consider the tax implications, potential conflicts of interest, time commitments and personal branding strategies of their NIL activities. They also need to balance their academic and athletic responsibilities with their NIL endeavors. Athletes can use professional service providers, such as agents, lawyers or marketing firms, to help them navigate the NIL landscape. They can also join collectives, which are third-party businesses that create and support NIL opportunities for specific schools or groups of athletes.

• NIL is still evolving and uncertain. The current NIL situation is likely to continue to change. The NCAA is still working on a permanent solution that would provide more clarity and consistency for all parties involved. Congress is also considering federal legislation that would create a national framework for NIL rights. Moreover, the impact of NIL on college sports is still unknown. Some experts worry that NIL could create competitive imbalances, harm team cohesion or undermine the amateur status of college sports. Others argue that NIL could empower athletes, increase diversity and foster innovation.

NIL is a new and exciting opportunity for college athletes to monetize their fame and talent. However, it also comes with challenges and risks that require careful attention and guidance. College athletes who want to take advantage of NIL should educate themselves on the rules, regulations, and best practices of this emerging field.