There is NIL progress being made, if you know where to look

This content first appeared in NIL Corner, my monthly column in Sports Business Journal.


NIL is more than bumbled Congressional hearings

To nobody’s surprise, my NIL-focused social media has a heavy dose of negativity in the comments. But I’m amazed that more people don't see the positive outcomes and progress being made throughout the NIL ecosystem. NIL is more than bumbled Congressional hearings and pay-for-pay deals. Here are five positive developments you may have missed that represent recent steps in the right direction.

#1 Livvy Dunne Creates first of its kind program for female athletes

Despite what many think (again see the comments on just anything I post on female athletes on LinkedIn), NIL has not been “great for women athletes.” I can cite my own data all day long here, but use a different source this time: Female athletes comprise just 6% of On3.com’s Top 100 Valuations. Two athletes (Livvy Dunne and Angel Reese) are in the Top 10, while the remaining four athletes are sprinkled through the remaining 90 spots.

While Dunne has had great NIL success, she knows first-hand the difficulties that many women athletes face and in response has created “The Livvy Fund.” The fund creates equitable access to NIL deals, including those from LUS’s Collective, Bayou Traditions. While the program won’t solve NIL inequities nationwide, it will have a major impact for female student-athletes at LSU - and could be replicated at other Power Fives.

#2 UCLA’s recent NIL networking night

The NIL marketplace is still so new that student-athletes and brands are still figuring things out. Even savvy brands with sports/athlete marketing experience are at the beginning stages of learning how student-athletes can promote their brand. And student-athletes are learning how to capitalize on potentially the greatest professional development opportunity they’ll have in their lifetime.

UCLA’s recent NIL networking night, named "Westwood Exchange Live", is an example of providing both sides of that marketplace an opportunity to learn. UCLA Athletics brought together local businesses, brands, donors and marketing pros to an in-person, on-campus event to generate connections. While an event in a major metro area like LA is certainly going to draw more brand representatives, universities outside of major cities could recreate the event virtually.

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#3 Student-Athletes support more NIL involvement from schools

Recent NIL news has included potential changes to the NCAA’s NIL guidelines that would allow more school involvement. While this may not be everyone’s cup of tea, a strong case can be made that more institutional involvement will lead to better NIL for all.

From October 9-14, 2023, I polled just under 1,100 current college student-athletes of which 815 were in DI. 78% said they’d be more likely to participate in NIL if their college/university were allowed to assist them. 39% of student-athletes would use their institution’s tax preparation and contract review services (keep in mind that those #’s would represent an 8x increase.) 36% would be likely to use cameras, podcast studios, and other resources for NIL activity if they were provided by their college/university (again, a significant improvement from where those #’s stand today.)

#4 Michigan shows how to support high school NIL

34 states (including Washington, DC) now permit NIL for High School athletes. The Michigan High School Athletic Association currently prohibits NIL, but that will soon change. The Michigan House recently passed a bill that will have the effect of permitting NIL for high schoolers.

What’s transpired in Michigan is notable because of the collaboration between state legislators and the state athletic association. They worked together. The MHSAA educated the legislators about the inner workings of NIL. And unlike other states whose legislators seem more interested in supporting the recruiting efforts of their state university, Michigan’s legislators penned a bill with student-athletes as the focus.

#5 More brand than ever are participating in NIL

The time from the Summer of 2021 to Summer 2022 was the period of early adopter brands and NIL pilot programs. It seemed prudent to many brand managers to wait to see the metrics that NIL’s first programs would yield. And while we don’t have as much data as we’d like, it’s clear that NIL is working and more brands are joining in.

In Q1 of this year, SponsorUnited released its 2022-23 NIL Marketing Partnerships Report, which cited NIL deals of more than 1,000 brands, representing 146% growth from July 2021. The major NIL marketplaces are reporting 3,000+ transactions per month. My data points to this period of growth being driven by “influencer marketing” as the primary NIL activity (about 80% of all NIL activity) with no signs of slowing down.

Again, there is NIL progress being made, if you know where to look!

Bill Carter, NIL expert, NIL consultant, NIL educator

Bill Carter is an NIL Consultant, Educator, and Speaker. He is a NIL Columnist for Sports Business Journal and teaches NIL in College Sports at the University of Vermont’s Grossman School of Business. Click here to read about Bill’s NIL Consulting and NIL Education for sports organizations, universities, and brands.