The NCAA’s adoption of Name, Image and Likeness (NIL) policies in July 2021 was heralded as a monumental shift, allowing college athletes to earn money from sponsorships, endorsements and other business opportunities. However, the reality is that many athletes are not striking it rich from NIL deals.
While the new era of NIL has provided opportunities, several factors limit the financial success of most student-athletes.
Uneven Distribution of Opportunities
The most lucrative NIL deals tend to go to athletes in high-profile sports like football and basketball, particularly at Division I schools. Star players at powerhouse programs receive most of the attention from brands, leaving athletes in less prominent sports or smaller schools with fewer opportunities. This disparity creates a significant gap in earning potential.
Market Saturation
With thousands of college athletes now eligible for NIL deals, the marketplace has become crowded. Brands may focus their budgets on a handful of marquee athletes, leaving limited opportunities for others. Additionally, smaller deals that are available often pay modest sums, making it difficult for most athletes to earn a substantial income.
Limited Marketing Resources
Unlike professional athletes, most college players lack agents, publicists, or marketing teams to negotiate and secure deals. Many rely on personal efforts or university-provided resources, which can be inconsistent or insufficient. Without professional guidance, athletes may miss out on lucrative opportunities.
Time Constraints
Balancing academics, practices, games and personal commitments leaves little time for athletes to focus on building their personal brand. The rigorous schedule of a college athlete can make it challenging to pursue and maintain NIL deals actively.
Lack of Exposure
Athletes at smaller programs or in sports with lower visibility face an uphill battle in attracting NIL deals. Without national television exposure or a large social media following, it can be difficult to garner interest from sponsors.
Education and Financial Literacy Gaps
Many athletes are new to navigating contracts, taxes and personal finance. Without proper education, they may struggle to capitalize on NIL opportunities or manage the income they receive effectively.
Focus on Short-Term Gains
Some athletes prioritize immediate monetary gains over building a long-term personal brand. Small, short-lived deals may not contribute significantly to their future earning potential or professional aspirations.
A Select Few Will Earn Significant Earnings
While NIL policies have undeniably changed the landscape for college athletics, the financial benefits remain out of reach for many NCAA athletes. Addressing disparities in opportunities, providing better education, and creating equitable resources can help more athletes benefit from their name, image and likeness. Until then, only a select few will truly reap significant rewards from this new era.
