Technology

school is starting. That might mean new textbooks, new clothes, and new names, images, and caricature deals for college and high school athletes eager to make money.

Whether posting on social media, making in-person appearances, hosting sports camps (or even fishing competitions), the ability to cash in is still relatively new for athletes. As the Athlete Compensation Era enters his second full-blown sports season, here’s what you need to know.

What impact did it have on college sports?

Either the NIL deal helped them get the player they were looking for, coaches say, or it’s just another level of competition for the most elite athletes. Remember May’s sparring between longtime national title contender Alabama coach Nick Saban and rival Jimbo Fischer at Texas A&M.

Many athletes have become entrepreneurs and some even have agents. NIL will also help athletes find another team, as well as more cash from companies, brands, or the many communities that have popped up everywhere since the start of his NIL era in July 2021. Also made it possible to enter the Transfer Portal.

FILE – NCAA headquarters sign as seen in Indianapolis on March 12, 2020. It is either the school or the athlete, depending on the rules of that state. (AP Photo/Michael Conroy, File)

Photo: ASSOCIATED PRESS/Michael Conroy

FILE – Alabama’s head coach Nick Saban shouts to bystanders during the first half of Alabama’s NCAA college football scrimmage in Tuscaloosa, Alabama, Saturday, April 16, 2022. The second half of his NCAA college football team’s game against Mississippi State on Saturday, November 13, 2021 in Oxford, Mississippi. Another level of competition for winning the most elite athletes. (AP photo/file)

Photo: ASSOCIATED PRESS

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Why did it take so long?

Flowering of NIL started from seeds. In his 2009 class action lawsuit filed by former UCLA basketball player Ed O’Bannon, the NCAA should not be allowed to use past and present likenesses of football players and men’s basketball players to make money. I claimed. O’Bannon won the antitrust case.

In June 2021, the U.S. Supreme Court ruled that schools cannot limit the educational-related interests of athletes, preventing students from receiving payments or financial assistance beyond full-ride scholarships to the NCAA. effectively nullified the rule of

In anticipation of this ruling, California led the United States in passing the NIL bill in 2019, forcing the NCAA to clear the way for athletes to earn endorsements on July 1, 2021, and to prevent other states from doing so. The rush has started.

What is a NIL Deal?

Posting on social media is the top activity athletes get paid for, followed by licensing rights, autographs/appearances, and running camps and lessons. Money comes from brands, fans and donors. In many states, athletes are not allowed to endorse alcohol, tobacco, or sports betting.

Who regulates NIL deals?

This is a state-by-state situation, and while the laws are largely the same, there are variations.

Many states allow third parties to link businesses with athletes for NIL contracts.

In Georgia, schools can ask athletes to pool up to 75% of NIL funds to share with other athletes, but it is not required. Connecticut allows athletes to use school logos if the school agrees. Also, her NIL contract, which reports to colleges and universities in Louisiana where athletes belong, is considered confidential information.

Several states, including Indiana, Kansas, Minnesota, New Hampshire, North Dakota, and South Dakota, do not have NIL laws for college athletes. In such cases, collegiate athletes must follow NCAA guidelines and interim policies. According to the NCAA, schools must not engage in “pay for play” or violate recruitment laws.

The NCAA does not monitor reporting of NIL transactions or compliance with state law. It is either the school or the athlete, depending on the rules of that state. However, the NCAA recently asked member schools to help investigate potential violations.

Why are there no national NIL laws?

It’s not that you’re short of effort. The NCAA and his two Power Five conference leaders are calling for federal law. Two of his U.S. Senators — Republican Tommy Tuberville (former Auburn coach) and Democrat Joe Manchin — are drafting legislation, and he’s asking the SEC Commissioner and others about how to change the NIL law. Seeking opinion from But there is no real movement in Washington.

Some states have “rights of publicity” laws that allow individuals to decide whether their name or image can be used for commercial gain. There is no such federal law.

The NCAA itself can set national NIL policies for its three divisions, but the organization promotes federal law instead.

Who benefits from NIL?

According to NIL’s platform, Opendorse, male athletes are leading NIL’s efforts. He is 62.7% against her 37.3% of women. Footballers and men’s basketball players had the highest percentage of contracts when looking across college sports (from data reported by Opendorse and his other NIL platforms, his INFLCR and Athliance).

Some women’s sports, notably basketball, volleyball, softball and gymnastics, tend to follow these two.

DII, DIII and NAIA players have been able to get deals, but the funding is primarily focused on Division I athletics.

The more niche a sport becomes, the less likely it is to land a blockbuster deal. Think tennis, field hockey, ice hockey, rowing. There are exceptions, though, as water skis and rifles average around $1,400 and he’s $6,000 respectively.

Can high school athletes participate in the Gold Rush?

It depends on where they live. More than 10 states have no problem with a high school student making her NIL deal, and others are considering it.

What next for NIL?

More money and possibly more regulation.

Opendorse plans NIL deals worth $1.14 billion over 2022-2023, with Power Five conference schools accounting for the largest share, and by region, in the Southeast. Collectives play a big role in the growth of NIL. They aim to organize and raise funds for school-specific athletes. Look for states without NIL laws to add laws.

The NCAA is also facing another lawsuit, currently pending in the Third Circuit Court of Appeals, alleging that the athletes should be recognized as school employees.

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