NIL Trends: January Update By Michelle Meyer1/31/21Wow! We’ve already made it through the first month of the year. And what a busy 31 days it’s been for the upcoming NCAA Name, Image, and Likeness legislation. Even with the NCAA indefinitely postponing the vote to change their rules, athletic departments, agencies, brands, and athletes are all moving full steam ahead prepping for the upcoming changes. Here are the interesting things that I learned this month and some speculation of where we may be headed: Athletic Departments Partnering with NIL Agencies is the New “Shiny Locker Room” For years there has been an “arms race” of sorts between the universities in the power five conferences. Because the NCAA rules caps how much an institution can compensate an athlete (full scholarship plus cost of living stipend), athletic departments have turned to spending on extravagant locker rooms, new stadiums, athlete-only buildings, and other luxuries to entice top recruits into their programs. With NIL legislation all but a sure thing, athletic departments are now investing heavily in third party brand agencies to prepare their athletes to monetize their name, image, and likeness. While education is super important for the athletes at this time, there are ulterior motives for these institutions striking these six figure deals: Recruiting. The universities who have moved quickly in this space are making their deals known publicly and I can imagine that most coaches have already incorporated the new brand development offerings into their recruit sales pitch. I anticipate more six-figure deal announcements this month from universities around the country. Financial Education Needs More Attention An issue that is not currently being discussed much but may have huge consequences is how collegiate athletes will manage their finances once they’re permitted to monetize their NIL. The athletes of football and basketball are likely to see the largest deals and the statistics we have about their financial literacy at the professional level (NBA and NFL) is disheartening. According to Ryan Schachtner, a financial expert who developed an education program specifically for collegiate athletes in the NIL era, 60% of NBA players file for bankruptcy within five years of retiring. In the NFL, it’s even worse: 78% file bankruptcy or experience financial hardship only two years after leaving the league. Collegiate athletes are going to need support, guidance, and education to make informed decisions around their finances as soon as the new NIL legislation goes into effect. While universities are spending some serious cash to partner with brand agencies, I’m hopeful that they will also look at programs like Schachtner’s to educate athletes before it’s too late. No Federal Bill in Advance of Florida’s NIL Law Going into Effect on July 1 With the pandemic still a main concern, a new President and Democrats taking control of the Senate, the Supreme Court agreeing to hear the Alston case, and legislators warning the NCAA about antitrust infractions, a federal bill being passed before July 1 seems highly unlikely. However, Florida’s “Intercollegiate Athlete Compensation and Rights” …
