NIL in a Nutshell
By Winston Venable
Being an elite student athlete now lends itself to lucrative marketing opportunities thanks to the NCAA allowing compensation. The more one shines, the more golden a player’s Name, Image, and Likeness become. They are commodities every athlete deserves to take advantage of, and it is long overdue. Now that this financial tool has come to being, it is that much more important to understand what it means and how it works. And who can best be of assistance.
Now for the nutshell…
Firstly, there are strict NCAA, and state, laws that monitor NIL compensation. For example, it cannot be used for recruiting purposes, nor for on-field performance. Players are, however, allowed to use agents, financial and tax advisors, and third-party entities, with tight oversight, to handle these transactions.
NAME is exactly that. Businesses pay to use the names of stand-out players because buyers will relate to that player in a good way. The amount a player earns is determined by how positively identifiable his or her name is to the public and how profitable that name might be for a given product.
IMAGE is, simply, a photograph or video that exemplifies the athlete’s overall character. Talent, sportsmanship, likability, personality, social conscience, generosity of time, and behavior, dictate how much an image is worth. To know the value off an uplifting personality, just look at those athletes who have behaved poorly and lost endorsements. It’s not pretty.
LIKENESS is any other image of an athlete, whether it be an illustration, bobblehead doll, painting, or other work that resembles the athlete.
*** NIL income has only been available since July 1, 2021, and it comes with a new set of rules that are still changing. PWM is well versed in the process and ready to help navigate the financial jungle our young clients face, just as they do with all fiduciary responsibilities they administer.
