Student-Athletes' Are Making NIL Mistakes: Why We Should Fix Them Now
“Focus on Education”
Last month Northwester Head Football Coach Pat Fitzgerald said in an interview about Name, Image, and Likeness, “If we focus on education, this thing will all kind of work itself out.” I couldn’t agree more which is why I created the NIL On-Demand 2021 Course which you can read about here. In a perfect world, we would have been able to educate all student-athletes in an orderly fashion before any of them began NIL activities. By educating everyone - NCAA DI, DII, DIII, and NAIA student-athletes - on the rules and the opportunities most relevant to them we would have set them up for success and avoided some of the early mistakes.
But the horse has left the barn. We need to triage the mishaps being made by Student-Athletes to prevent negative outcomes and increase their likelihood for longterm success.
During these first six weeks of NIL from the NCAA’s perspective (NAIA has had it in place since last October), there have been three common errors. Some of these are serious, so we don’t have the luxury of time. They should be corrected ASAP.
*Data referenced herein is from a Student-Athletes Insights survey between July 5 - August 13, 2021 of 1,560 student-athlete participants in all Divisions.
#1 Most Are Breaking FTC Rules
While most are unaware, student-athletes who participate in any social media-related NIL activities are obligated to follow Federal Trade Commission (FTC) rules. I’m not talking about an institution’s policy or the NCAA/NAIA rules. I’m talking about the regulations of the FTC, an agency of the federal government.
The FTC’s mission is to protect consumers. And in that role, they have developed Endorsement Guides to help endorsers (including student-athletes) to stop deceptive ads.
Failure of student-athletes to disclose their relationship with a sponsor puts the student-athletes in danger of what the FTC has described as a “crackdown” and can result financial and other penalties.
72% of student-athletes in my surveys didn’t know what the Federal Trade Commission (or “FTC”) did relative to NIL. 84% said they had never heard of the FTC’s Endorsement Guides. That means that those student-athlete don’t know the 3 most basic rules, including:
Not making statements about a sponsor’s product or service unless it’s their honest belief.
Not making statements about a sponsor’s product or service that cannot be proven by the sponsor.
And as mentioned above - the nee to disclose that they have a relationship with the sponsor to allow consumers to weigh the value of your endorsement.
In an audit I did of 150 SA’s who’d posted on their social media on behalf of brands between July 10 - August 10, over 70% didn’t disclose the relationship.
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#2 Few Are Considering Their Personal Brands
Despite increased visibility and attention, few student-athletes have gone back to review their social media and other personal brand content. 68% of student-athletes say have not spent any additional time since July 1 adjusting their approach to social media for NIL.
Most student-athletes have not spent enough time re-visiting their social accounts and ensuring that their content is a positive and consistent representation of them.
And those that are spending time on their channels don’t seem to have a plan for content that is entertaining, insightful, and on-brand. When people hear the words “personal” and “brand” in the same sentence, they sometimes confuse what we are trying to achieve. A brand isn’t the “incorporated” version of you. It’s not an overly polished or just plain fake version of you. A personal brand is the real, human, authentic you - but fine-tuned so that it relates to the customers or community you want to serve. And in return for that service, building that strong reputation will help you personally and professionally - not just during your college career, but throughout the rest of your life.
#3 Most Still Equate NIL With “Endorsements”
62% of student-athletes think NIL is “primarily about endorsements.” Mistake because NIL is for everyone and mostly about other entrepreneurial endeavors.
Very small % of pro athletes on team sports get endorsements. The overall % is only inflated because of individual athletes - golf, tennis, snowboarding. But the opportunities are genuine, especially for those student-athletes who have an interest in entrepreneurship….