NIL White Paper

Athletes at any level have their ups and downs. However, many agree that playing at a collegiate level presents different difficulties. With the introduction of NIL in 2021, things have not gotten easier for coaches, players, and faculty alike. NIL, which stands for name, image, and likeness, was developed in 2021 by the NCAA to allow players to profit from their brand at the collegiate level. Although it was technically offered at all levels of collegiate sports, it is prominent in Division I. Since then, there has been a boom of endorsement deals, paid partnerships, and even personal sponsorships, making athletes millions of dollars a year. Although this is talked about, researched, and written about daily, I think it’s more prominent to talk about it at the Division III level. In the middle of the experience of D1 NIL deals, countless newspaper articles are written about it daily. However, not many see it from the perspective of a D3 athlete. Many who aren’t involved don’t know that scholarships are not offered at the Division III level. If anyone gets a scholarship, it’s because of the academic accomplishments of the individual. Many other Division III-level schools say they embody the student-athlete experience. In turn, NIL opportunities are limited, if not nonexistent. This paper will compare different levels of NIL and the pros and cons at the D1 and D3 levels.

In research, it was interesting that Division 3 schools have a very different approach to NIL. As stated before, D3 institutions emphasize balancing academics and sports, not just playing sports as their only identity, which has affected the NIL culture of Division 3. Since students are seen for their athletic abilities, classroom performance, and community activity, NIL opportunities are much smaller. For the few lucky D3 athletes with NIL endorsement deals, it is most prominent to see social media posts as the extent of their endorsement. Most athletes use Instagram and/or TikTok to promote a brand that endorses them. But again, most D3 schools rely on academics over athletics, so the pool of NIL opportunities is much smaller compared to D1 schools. Not only are the D3 schools usually a lot smaller, but they also have a lot less backing from the community and faculty of the school. Comparatively, some D1 schools have faculty and even separate buildings dedicated to NIL. In comparison, at the D3 level, most athletes must be self-advocates and use better judgment regarding NIL deals since there is a lack of education or knowledge of the new NIL field.

Compared to D1, D3, and NIL opportunities, the opportunities at the D1 level are more prominent and within reach. Most D1 schools make most of their money off their athletes, which is one of the factors that led to NIL. Many student athletes noticed that they were making their school a lot of money and getting very little in return. NIL allows athletes to capitalize on their successes and fan base financially. It is almost sickening to see the millions of dollars in deals that popular and prominent athletes are getting because of NIL. For example, an athlete like Bronny James makes more money at the college level than they might if they get into the big leagues. By cause-and-effect, we now see a shift of athletes staying in college slightly longer than in recent years. Not all NIL is bad; it’s new and has no federal regulations. It teaches young adults how to self-promote while keeping themselves safe and creating a good image on social media. When you look at it that way, most popular athletes are also entrepreneurs of themselves.

In terms of outreach of the D1 and D3 NIL sector, it is worth noting that the difference in invisibility and institutional support is vast. Most D1 athletes already have media and TV exposure, so they are already a step ahead of other athletes in the country. Although being on TV and playing against other popular athletes does not confirm a NIL deal with it, it helps certain college players become household names before they even graduate. Not only is the TV presence propelling Division 1 athletes ahead, but the market size for the Division III level is much smaller than D1. If a college player is already a household name, brands are more inclined to send them a contract. Which is why at the D3 level, brands are less likely to be interested in endorsements with D3 athletes for the same reason. When it comes to advertising, many of the big NIL deals are making their way to national television, while other NIL deals from D3 players are on local stations or even just radio stations.

While the opportunity for athletes to capitalize on their name, image, and likeness is a considerable advantage, educating athletes on social media, the risks of NIL, being entrepreneurs, and even legal advice is essential. Since the NIL is still so new, there are no federal regulations on it yet. Although many divisions have their own guidelines, no rules are involved. On the flipside, for D3, there is not much education available because, again, most of the community and faculty are more focused on successful students than rich athletes. D3 institutions are mindful that sports aren’t forever and not many people make it to the professional level, so it is more of a priority to make sure people get their degrees and go into a field that they love rather than chasing after sponsorships for a sport they’re only going to play for a few more years.

In recent years, NIL has completely changed the landscape of college sports. With the transfer portal also being an option, there is little to no consideration of finding a good fit in a school; it could be more about money. Not only is it already stressful picking a school to play at, but the stress of potential NIL deals also adds another layer to this ever-changing onion. Managing school and extracurriculars while improving your game and creating and promoting your brand adds extra pressure to a D1 athlete when it seems like every minute of the day is planned. However, if done successfully there are financial awards ahead but at what price?

On the other hand, D3 athletes must juggle academics and being good at their sport; it’s always a “what if “about reaching out to businesses, etc. Luckily, at the D3 level, it is seen as self-promotion and entrepreneurial practice, not as much as a way of life, as I could see at the D1 level. In turn, academics remain the focus.

NIL in the college sector is still in its adolescence. It will also be interesting to see new laws and regulations. The rest will come to fruition if athletes focus on the sport they love. At a D1 level, the athletes have greater access but more stress. At the D3 level, athletes have smaller windows of opportunity but have a focus on academics. Both divisions emphasize self-promotion and entrepreneurial skills. In the coming years, we will see if the gap between all the divisions starts to close regarding revenue and NIL deals.