The Impact of NIL on College Recruiting
this originally appeared in the february 21st nil corner, my monthly sports business journal column.
the recruiting narrative
There is a narrative that’s developed in recent months that NIL is the “most important thing” in college recruiting today. I think that might be an oversimplification of what’s happening across the recruiting landscape. It’s true that many student-athletes are interested in maximizing their NIL opportunities. But whether NIL becomes a recruiting tool for coaches has much to do with how that coach’s institution supports - or doesn’t support - their student-athletes’ NIL interests.
I have watched carefully NIL’s impact on recruiting for the last year and have done several surveys of student-athletes on the topic. Still, I thought having another perspective in preparing for this month’s NIL Corner was important. So I had a conversation with Alabama AD Greg Byrne. We discussed the recent announcement of the University of Alabama’s new Advantage Center - their NIL hub which will launch this Fall. The concept of the Advantage Center was initially conceived by Learfield - a relationship that Byrne was quick to praise, “They brought this to us. We appreciate our longstanding partnership with Learfield.”
NIL Is Impacting All Recruiting
A few data points about NIL and recruiting that may surprise you. These are from my Student-Athlete Insights surveys from July 2020 through January 2023:
The college selection criteria used by the majority of Division I student-athletes “pre-NIL” (prior to July 2021) is similar to the selection criteria used in today’s new NIL era
In other words, even while NIL’s visibility has grown, most DI prospects still care more about team culture, coaching, facilities, and a program’s impact on the their future (whether that’s playing in the NFL or landing their first job after graduation) than they do about NIL
Even at Power Five schools, nearly 75% student-athletes say NIL is just one of many important factors that they consider when making a college choice and it ranks as the #1 criteria for very few prospects
But Still, The Power Five Is Different
Recruiting at a Power Five school is unique for many reasons. Among them is that NIL opportunities for these student-athletes are achievable and potentially profitable. So the very definition of “recruiting” at these institutions has changed. Today, Power Five coaches not only need to persuade high school and junior college prospects, but they must retain their current rosters (re-recruit the student-athletes already in their program) and manage the transfer portal.
In one of my recent surveys, Power Five student-athlete results included:
67% of student-athlete who were already considering transferring said that NIL would play a role in their decision (including whether or not to transfer and what school to transfer to)
59% said that a lucrative NIL deal could keep them out of the Transfer Portal
Three-quarters of Power Five prospects and current student-athletes consider team culture, not NIL, to be the most important criteria in making their decisions (whether it be their initial choice or a transfer decision)
There is no way around it: NIL plays a major role in recruiting, but I don’t think it’s only about NIL “deals.” The future of NIL in recruiting might hinge equally on a school’s commitment to providing student-athletes’ NIL support.
Case Study: Alabama’s Advantage Center
Byrne said in our conversation,“We have tried to be slow and steady from an NIL standpoint. We have tried to not have a whole lot of shock and awe.” From my perspective, I think that approach has paid off. Alabama seems to have a clear read on how to make NIL a recruiting advantage.
When NIL became a reality, June 30, 2021, most institutions were not prepared to educate or support student-athletes. Most did not have an NIL policy, dedicated staff, or infrastructure. Even today, most institutions still don’t have all of those pieces in place; only around 10% of DI schools have a dedicated NIL Coordinator or staff person who focuses on NIL without other responsibilities. I don’t think schools are to blame - putting these resources into place takes time and money and they are facing the constant barrage of changes and distractions that make it difficult to execute an NIL plan.
According to surveys I’ve completed in the last 6 months, nearly 70% of student-athletes want more education and support from their institutions on things like personal branding, managing their social media presence, finding NIL opportunities, contract review, and much more. Alabama seems to have listened closely to their student-athletes and prospects. Byrne said of the role that his coaches played in determining Alabama’s approach to NIL, “It would be irresponsible if we weren't communicating with our coaches and hearing what their athletes want and what else is out there (on the recruiting trail).”
Part of recruiting is about differentiation from the competition. 66% of college prospects agree with the statement, “College Coaches all sound the same during their recruiting pitch.” The Advantage Center should set Alabama apart - at least until the Tide’s competitors build something similar. The Center is planned to be the hub of education and more. At 1,800 square feet, it will sit next to The Authentic, the first-ever retail team store focused on selling officially licensed team apparel and student-athlete NIL merchandise. The Center will include infrastructure for student-athletes to record podcasts, film in a green room, and meet with brands to discuss marketing opportunities.
It’s Not About the Building, Really
I hope that Alabama’s approach to NIL is seen as relevant to other institutions, because what they are committed to isn’t just about an NIL building - which is an expense that few schools can afford. Rather, I think what Alabama is committed to is an attitude. Byrne summed up this way, “We are making sure that our student-athletes are given support and direction to maximize NIL.” Building or not, that’s something every athletic department can aspire to.
Bill Carter is an NIL Consultant, Educator, Speaker, and Columnist for Sports Business Journal. He also teaches NIL in College Sports at the University of Vermont’s Grossman School of Business. Bill’s a SportsBusiness Journal Forty Under 40 Award winner and former co-founder of the athlete & event marketing agency Fuse, which he operated for 20+ years before selling in 2019.