Since its founding in 1906, the National Collegiate Athletic Association (NCAA) has spent a lot of time, money and resources to ensure that athletes of its member schools could not receive compensation via sponsorships.
But that all changed on June 30, 2021, when the Division 1 Board of Directors approved a name, image and likeness (NIL) policy. With this new policy, all student-athletes — across all divisions — are permitted to be compensated for their NIL.
To stay updated with top startup new & investments, sign up for Benzinga’s Startup Investing & Equity Crowdfunding Newsletter
Are Students Cashing In?
With 520,000 student-athletes, it’s safe to assume that some are performing better in the NIL department than others. Those who treat it like a business, have the potential to secure massive deals.
Take Olivia Dunne, a gymnast at Louisiana State University (LSU), for example. She earns seven figures per year through brand deals with companies like Vuori Inc. and American Eagle Outfitters Inc.
According to a recently published People magazine article, Dunne uses the power of her massive and fast-growing social media audience to connect with brands.
"I want to show you can do whatever you love — whether it's gymnastics or music or painting — and capitalize on it and create your own business,” she said.
Dunne isn’t alone at the top
Other athletes are having just as much NIL success as Dunne, with these four among the most well-known.
- Paige Bueckers: The star point guard for the University of Connecticut women's basketball team has deals with The Gatorade Co., Nike Inc. and StockX. She is one of the most exciting young players in college basketball, making her a perfect fit for many brands.
- Spencer Rattler: The starting quarterback for the University of South Carolina football team secured his first NIL deal with Raising Cane's Chicken Fingers. After opting for another year on the college gridiron, Rattler is likely to stack up even more brand endorsements.
- Haley Jones: A top player for the Stanford University women's basketball team, Jones has deals with Nike, Gatorade and Beats by Dre among others. She’s a whiz on the court, and her social media presence is growing. She’s a great example of a student-athlete earning big NIL money without millions of social media followers
- Bryce Young: Although Young will find himself on an NFL field next season, what he did from an NFL perspective will never be forgotten. He paved the way with deals from Colonial Athletic Association (CAA Sports), Cash App and others.
What About Smaller-Name Athletes?
Top-earning student-athletes have the advantage of name recognition. People know them from their time on the field or the talent they will bring.
Less-known athletes may not be able to command the same high price tag, but there are opportunities available. Opendorse is a leading NIL marketplace startup and technology company. With its simple-to-use platform, brands can market deals and athletes can apply directly online.
The NCAA’s passing of its NIL policy has turned countless athletes into small-business owners overnight. They’re on the hunt for deals, communicating with brands and paying taxes on their income. And that’s all while they’re starring in their sport and in the classroom.
See Next: NIL isn’t the only rule being changed. Thanks to recent changes in federal law, anyone can invest in startups like Opendorse, or the brands making millions off these deals. Platforms like StartEngine and Wefunder allow anyone to invest in startups. For example, ARKHAUS is a startup using a legal loophole is acquire real estate in some of the most sought after real estate on the market at a fraction of the cost
Read More in Startup News & Investing Opportunities:
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
