10 Most Common Questions Student-Athletes & Universities Have About NIL
Simple, Data-supported Answers to NIL's FAQ's
Ever wonder why, when you Google a question about NIL, the information you get is usually, um, terrible!!!??? You're experiencing something called "information lag" (the gap between a rapidly evolving topic, like NIL, and the quality of information available on widely-used platforms like Google.)
In real-world terms, it means that Google hasn't yet sorted out the credible and accurate information versus the opining of "Uncle Bob" - the Florida State fan who blogs about how NIL is the end of western civilization.
In this week's newsletter, I try to chip away at that and provide some simple, data-supported answers to NIL's FAQ's. There are 3 reasons that both the questions and the answers below are unique and accurate:
I'm not Uncle Bob
I'm using my new custom NIL AI ("GPT") to read, analyze, and interpret NIL data
The NIL data being analyzed is proprietary and includes over 40,000 student-athlete responses gathered by my NIL Research Poll, every month since 2021
I call my NIL AI "Livi" - named for my daughter (not the other Livvy), whose high school computer science class was the impetus for this project. I'm going to make "Livi AI" public in a few weeks. If you want the beta version for free to answer your NIL questions, reply to this email and write "Livi" in the subject line.
10 Most Common Questions Student-Athletes Have About NIL
What is NIL, and how does it benefit me?
NIL stands for Name, Image, and Likeness. It allows you to earn money by leveraging your personal brand. Based on our NIL Research Poll, about 70% of student-athletes believe NIL opportunities can help them build their future careers, both in and outside of sports.
How much money can I realistically make through NIL?
Earnings vary widely. The average reported earnings are around $3,700 per year, but the median is closer to $1,000, indicating that a few high earners skew the average. Most athletes can expect smaller deals but can increase their earnings with effective branding and consistent engagement.
What types of NIL activities are most common?
By far, the most common NIL activity is sponsored social media posts (85%), in-person appearances (15%), and merchandise sales (12%). Social media remains the primary activity because of its reach and accessibility.
Do I need a large social media following to benefit from NIL?
Not necessarily. While having a large following helps, brands are increasingly valuing engagement over sheer numbers. Around 40% of student-athletes with under 5,000 followers have successfully signed NIL deals, highlighting the importance of authenticity and audience interaction.
How do I find NIL opportunities?
Start by contacting local businesses, leveraging your personal network, or using online NIL marketplaces. According to our surveys, 72% of athletes found their first deal through direct outreach, demonstrating the importance of proactive effort.
What should I consider before signing an NIL contract?
Key considerations include contract length, compensation details, exclusivity clauses, and compliance with NCAA rules. In our NIL Research Poll, 35% of athletes said they experienced issues because they didn’t fully understand the contract terms, stressing the need for careful review or professional advice.
Can I work with an agent to secure NIL deals?
Yes, but make sure the agent is reputable. Currently, less than 20% of student-athletes report working with agents, often because the deals don't warrant the expense. A certification system could help mitigate risks, but until then, it’s important to thoroughly vet any representation.
How does NIL affect my eligibility and compliance with NCAA rules?
You need to report NIL activities to your compliance office. Violations can impact eligibility. In our poll, 48% of athletes said they felt unclear about their university’s NIL guidelines, so stay in close communication with your compliance team.
How can I use NIL to build my personal brand?
Think about your values, interests, and audience. Posting consistently on topics you care about helps build an authentic brand. Our research found that athletes with a defined content theme (e.g., fitness tips or community engagement) saw 20% higher engagement rates than those without.
What tax implications should I consider with NIL income?
NIL earnings are taxable. This includes cash and even free products received as compensation. According to our surveys, about 30% of student-athletes still don't realize they need to pay taxes on NIL income. Setting aside a portion of each payment for taxes is a good habit.
10 Most Common Questions University Staff (ADs, Athletic Administrators, Coaches) Have About NIL
How can our athletic department support student-athletes with NIL opportunities?
Providing educational resources is key. According to our NIL Research Poll, 68% of student-athletes felt unprepared to navigate NIL on their own. Hosting educational workshops, connecting athletes with advisors, and offering NIL courses can significantly improve their experience.
What compliance measures do we need to have in place for NIL activities?
Compliance is crucial to avoid NCAA violations. About 55% of universities reported struggling with monitoring NIL deals. You should have a system to track and approve all NIL activities, ensuring they adhere to state laws, NCAA guidelines, and university policies.
How do NIL deals impact recruiting efforts?
NIL is a key factor in recruitment. In our survey, 65% of DI recruits (all sports) said that NIL opportunities influence their college choice. Offering support and education on NIL can be a differentiator for attracting top talent, especially when competing with schools with larger budgets.
Should we partner with third-party companies for NIL support?
Partnering with NIL collectives or marketplaces can provide additional opportunities for your athletes. Currently, around 60% of universities use third-party vendors to help manage NIL opportunities and compliance, particularly when they lack internal resources.
How can we educate our student-athletes about NIL contracts?
Educating athletes on contract basics is essential. Our data shows that 35% of athletes signed contracts they later regretted. Hosting workshops with legal experts or partnering with law schools for pro-bono contract reviews can be effective ways to support your athletes.
What risks are associated with NIL, and how can we mitigate them?
Risks include eligibility issues, legal challenges, and tax complications. To mitigate these risks, 72% of universities now have dedicated NIL coordinators or compliance officers. Ensuring athletes understand NIL reporting requirements and the legal aspects of deals is vital.
How can we help athletes maximize their NIL earnings while balancing academics and sports?
Time management is crucial. In our research, 45% of athletes reported feeling overwhelmed trying to manage NIL along with their academic and sports commitments. Encouraging structured schedules and offering time management workshops can help athletes balance these demands.
What role does social media play in NIL success, and how can we support it?
Social media is central to NIL success. Our data shows that 85% of NIL deals involve social media promotion. Providing student-athletes with social media training on best practices, content creation, and audience engagement can significantly enhance their opportunities.
How do we manage relationships with local businesses and ensure fair opportunities for all athletes?
Building and maintaining relationships with local businesses can create a stream of NIL opportunities. Our poll found that 73% of NIL deals for athletes at smaller programs come from local partnerships. Hosting community events and connecting businesses with athletes can promote fairness and accessibility.
What are the tax implications for our student-athletes, and how should we guide them?
NIL earnings are taxable, which many student-athletes do not realize initially. About 40% of student-athletes reported knowing less than they should about tax obligations. Providing tax education sessions or connecting athletes with tax advisors can help them understand their responsibilities and avoid issues during tax season.
About Bill Carter
Bill has advised brands on Name, Image, Likeness for 25 years—first in pro sports, now at the college level. He was the Co-Founder of the Gen Z sports agency Fuse, which he sold in 2019. In 2020, he founded Student-Athlete Insights and consults on NIL strategy with Fortune 500 companies and 30+ DI universities. Read more about Student-Athlete Insights.