During the 2012 college football season, Johnny Manziel’s remarkable ascent to stardom enthralled fans nationwide. His historic achievement as the first freshman to claim the Heisman Trophy highlighted his extraordinary talent and playmaking prowess, fundamentally reshaping perceptions of the quarterback role in collegiate and professional football. Nevertheless, despite the soaring sales of Manziel’s jerseys and his captivating on-field displays, financial compensation remained elusive for not just Manziel but all athletes who breathed vitality into the sport.1
In June 2021, a pivotal moment arrived as the NCAA announced a groundbreaking change: players could leverage their Name, Image, and Likeness (NIL) for personal financial gain. This announcement marked a new era for college athletics, signifying a transformative shift overnight. NIL regulations triggered a revolution within college football, opening doors to new opportunities for players and fundamentally reshaping the sport’s focus.2 Fans, particularly those of college football, should better understand the recent changes:
1. Fundamentals of NIL,
2. Impact of NIL, and
3. The next plays moving forward.
Fundamentals of NIL
Name, Image, and Likeness (NIL) refers to the rights of collegiate student-athletes to profit from their own brand. In June 2021, the U.S. Supreme Court struck down the NCAA’s restrictions on NIL activities, deeming that previous restrictions violated antitrust laws. In response to the ruling, the NCAA implemented rule changes allowing NIL activities among student-athletes and granting schools the authority to establish their policies. Athletes gained the ability to engage in various paid activities, such as endorsements, ad campaigns, and social media promotions.3
While certain restrictions remained, such as direct compensation for athletic achievements and “payto-play” schemes, the NIL market experienced rapid growth, surpassing $900 million within a year and showing potential to exceed $1 billion in subsequent years.4 A large portion of this market is dedicated to college football, with more than half of the NIL compensation distributed in football.
The expansion of the NIL market also influenced the creation of new entities and strategies. Notably, alums and influential supporters of universities have capitalized on the change by forming collectives, which serve as independent business entities designed to gather funds from boosters and businesses. These collectives, structured as for-profit limited liability companies (LLCs) or nonprofit organizations, enable supporters to contribute financially while potentially receiving tax benefits.5 In return, student-athletes gain additional opportunities for financial gain through partnerships facilitated by these collectives.
Alongside the advancements NIL provides, players and programs must navigate a multitude of hurdles. Addressing these hurdles requires a comprehensive approach that balances financial opportunities with ethical considerations and upholds the core values of collegiate sports.
Impact of NIL
NIL represents a monumental step forward for athletes, granting them unprecedented opportunities to leverage their talents and marketability for financial gain. However, alongside these advancements come a multitude of hurdles that players and programs must navigate in an era of empowerment and opportunity previously unseen.
Recruitment
The potential for NIL earnings plays a significant role in recruitment strategies. This shift alters traditional approaches, as programs now assess an athlete’s onfield performance, marketability, and individual NIL potential. Consequently, programs must adapt by actively managing their image and brand to attract sponsors and capitalize on NIL opportunities. Even at Power Five schools, where NIL opportunities are more achievable and potentially profitable, nearly 75% of athletes cite NIL as one of many factors in their college decision-making process.6 Coaches now must not only focus on persuading high school and junior college prospects but also on retaining current athletes, requiring a proactive approach to managing transfers. The following graph illustrates the notable surge in transfer portal entries following the implementation of the NIL rule changes, shedding light on the intricate relationship between NIL and recruitment.
Program Brand
Programs must actively manage their image and brand to attract top recruits and capitalize on opportunities. No longer confined to traditional recruitment tactics, schools must strategically position themselves to appeal to both potential recruits and external stakeholders. The access to resources, facilities, and networks directly impacts the university’s ability to attract top-tier athletes, funding, staff, and substantial NIL opportunities.
Team Cohesion
Traditionally, signing day victories have been celebrated by fans, but questions linger about the ability to convert recruiting success into on-field victories.8 Programs are grappling with the delicate balance between individual endorsement deals and team cohesion, all while upholding the principles of amateurism. The idea that NIL introduces unnecessary distractions for teams–potentially instigating division among athletes– highlights the intricate challenges collegiate athletic programs face.9
Maintaining team unity while navigating individual players’ newfound empowerment has become paramount. This requires fostering an environment where athletes feel supported both as individuals pursuing NIL ventures and as members of a cohesive team working towards collective success.
Drawbacks
While NIL offers numerous benefits, it is not without its drawbacks. One significant issue revolves around the secrecy and competitiveness surrounding NIL deals, which often favor athletes from more prominent programs or with higher profiles. Larger programs may have more resources and connections to secure lucrative endorsements, leaving athletes from smaller schools or less visibility disadvantaged.10 Additionally, athletes and programs are often bound by nondisclosure agreements, resulting in misinformation and mystery. This secrecy can lead to misunderstandings and exploitation, as seen in cases where athletes are promised significant deals but receive nothing.11
International athletes face unique challenges in navigating NIL regulations. Despite the NCAA’s allowance of NIL rights, international students are essentially prohibited from profiting from their NIL due to visa restrictions. International athletes use F-1 visas intended for students from other countries; h. However, recent years have seen a tightening of immigration policies, imposing stricter regulations on F-1 visa holders.12
These constraints include heightened scrutiny of employment opportunities and limiting international students to on-campus jobs that do not replace positions held by American students or workers.13 Consequently, international athletes find themselves unable to fully capitalize on NIL opportunities due to the terms and conditions of their visas.
“Navigating the complexities of NIL regulations while maintaining compliance with NCAA rules poses significant challenges for universities and athletic departments.”
A primary concern is avoiding illegal inducements of potential student-athletes. With the potential for lucrative endorsement deals, there is a risk that boosters or third parties may incentivize athletes to recruit them to particular schools. While the NCAA has provided guidelines for NIL activities, there are discrepancies between state laws and institutional policies, leading to confusion and potential legal challenges.
The Next Plays
In the landscape of college football, the interplay between talent and opportunity often defines a player’s career trajectory. For Johnny Manziel, the former Texas A&M quarterback and 2012 Heisman Trophy winner, his journey epitomizes the seismic shift underway in collegiate athletics.14 Despite his on-field brilliance, Manziel was unable to capitalize on his fame due to the absence of NIL regulations, which, had he been able to leverage during his collegiate tenure, could have dramatically altered the outcome of his career.15
Navigating challenges such as striking a delicate balance between NIL rights and competitive fairness, implementing robust compliance measures, and upholding high ethical standards remains an ongoing imperative. By fostering transparency, accountability, and fairness, individuals can create a sustainable environment that benefits student-athletes and preserves the integrity of collegiate athletics for generations to come.
As the collegiate athletics landscape continues to unfold, participants and supporters must remain focused on navigating the complexities of NIL regulations and program competition while safeguarding the integrity of the game for future generations.
Notes
1. Jacob Camenker, “What Happened to Johnny Manziel? Ex-Texas A&M Star, NFL Draft Bust Returns to College Station with New Bar, Perspective on Life,” Sporting News, August 9, 2023, https://www.sportingnews.com/ us/ncaa-football/news/johnny-manziel-texas-am-nfl-draft-bust-college-station-bar/eqtigxubwfqepkpokyuqdo80.
2. James Park, “NIL in College Football: Here’s What You Need to Know, and What’s Next,” Sports Illustrated, January 17, 2024, https://www.si.com/fannation/college/cfb-hq/ncaa-football/college-football-nil-rule-changeswhat-you-need-to-know.
3. Dan Johnson, “A Field of Dreams: How NIL Changed the Game for Student Athletes,” Journal of Financial Planning 36, no. 5 (2023): 40–52, https://byu.idm.oclc.org/login/?url=https://www.proquest.com/trade-journals/ field-dreams-how-nil-changed-game-student/docview/2809784686/se-2.
4. Park, “NIL in College Football.”
5. Dan Johnson, “A Field of Dreams: How NIL Changed the Game for Student Athletes,” Journal of Financial Planning 36, no. 5 (2023): 40–52, https://byu.idm.oclc.org/login/?url=https://www.proquest.com/trade-journals/ field-dreams-how-nil-changed-game-student/docview/2809784686/se-2.
6. Bill Carter, “The Impact of NIL on College Recruiting,” Sports Business Journal, February 21, 2023, https:// www.sportsbusinessjournal.com/SB-Blogs/OpEds/2023/02/21-Carter.aspx?hl=college+recruiting&sc=0&publicationSource=search.
7. “College Football Transfer Portal,” On3, Transfer Portal, 2024, https://www.on3.com/transfer-portal/wire/football/2024/.
8. Joe Scalzo, “NIL Deals, Transfer Portal Create Havoc and Opportunities for College Football Programs,” Crain’s Cleveland Business 45, no. 3 (2024): 6, https://byu.idm.oclc.org/login/?url=https://www.proquest.com/ pq1business/trade-journals/nil-deals-transfer-portal-create-havoc/docview/2918272159/sem-2?accountid=4488.
9. Natalie Welch, “NIL Disrupts the Power Dynamics of College Sports,” Seattle University, Albers Brief, 2022, https://www.seattleu.edu/business/news-events/albers-brief/albers-brief-fall-2022/nil-disrupts-the-power-dynamics-of-college-sports/#:~:text=Objectors%20say%20NIL%20creates%20an,better%20manage%20their%20 NIL%20situation.
10. Johnson, “A Field of Dreams,” 43.
11. David Ubben, “Why Are College Football NIL Deals Hush-Hush? NDAs, Stigma and Competition,” The Athletic, September 8, 2023, https://theathletic.com/4842494/2023/09/08/college-football-nil-collectives-ndas/.
12. Bryan Dearinger, “Name, Image, and Likeness: International Student-Athletes,” University of Oregon, Office of the General Counsel, n.d., https://generalcounsel.uoregon.edu/name-image-and-likeness-international-student-athletes.
13. Beth D. Solomon, Karina G. Jolly, Sarah Stokowski, Sam C. Ehrlich, Skye G. Arthur-Banning, “Who Is NIL Leaving Out?” Sports Innovation Institute 3, no. SI (August 2022): 69–80, https://doi.org/10.18060/26058.
14. Matthew Postins, “Johnny Manziel Reveals What He Could Have Made in NIL,” Sports Illustrated, February 2024, https://www.si.com/fannation/name-image-likeness/news/johnny-manziel-reveals-what-he-could-havemade-nil-matt9.
15. Eric Prisbell, “The 50 Players of the Past 25 Years Who Would Have Made the Most NIL Money,” On3 NIL, August 2021, https://www.on3.com/nil/news/50-college-athletes-past-25-years-most-nil-money/.