Before the Fair Pay to Play Act was signed into law, there were countless debates as to whether or not college athletes should be paid. I’ve always taken the stance that allowing athletes to earn money from their name, image and likeness would come with so many benefits for both student-athletes and schools.
Let the haters hate, but below are a few reasons why NIL has the ability to transform the lives of student-athletes and the schools they represent.
7 Reasons NIL is a Game-Changer for Athletes
NIL provides athletes with business knowledge. Not every athlete is a legacy student who can rely on their parents wealth, business acumen, or connections to help set them up for success. Every athlete doesn’t have a network already embedded in their family where their parents’ friends or business partners can help them secure a job.
The ability that athletes now have to work part-time or to create and manage their own brands gives them a head start in life after school. Instead of waiting to receive their diploma, they can start now: creating their own relationships, growing their network, or building their portfolio before they walk across that graduation stage.
Scholarships aren’t enough. Not every student who receives an athletic scholarship receives a full ride offer to play at their college or university. According to an article by debt.com, although there are nearly $3 billion in athletic scholarships available, just over 1% of high school athletes receive full or partial athletic scholarship. When looking at my sport, the average value of scholarship given to women’s basketball players is just over $36,000, which won’t cover all of one’s college expenses.
Earning revenue from NIL can give athletes financial security that allows them to pay for other expenses. Not having to use credit cards so early, or having the ability to pay off loans before they balloon can put athletes in a much better position in the long run.
Schools win. Colleges and universities also stand to benefit in many ways. One example, rules and regulations that focus on ‘impermissible benefits’ have decreased significantly. Not having to focus on small violations can help athletes and coaches focus on bigger picture items. Another example, athletes who are able to earn money early on might turn into wealthy and happy alumni who donate back to their schools. In both cases, schools stand to benefit from NIL.
There is money to be made. Just because athletes can make NIL money doesn’t mean they are taking it away from others. NCAA made close to $1 billion on the March Madness tournament in 2022… yes that is billion with a ‘B’. Players don’t receive any of that revenue.
Despite many athletic directors, coaches and assistant coaches making hefty salaries, there is still room for athletes to profit off of their NIL through partnerships, entrepreneurial endeavors and traditional employment opportunities. In every industry, including sports and entertainment, there will always be new business opportunities available for everyone to benefit from.
NIL provides support for families. Despite a lot of athletes coming from middle class or wealthy backgrounds, many athletes come from less fortunate circumstances. Being able to earn money from NIL gives athletes the ability to support their families. Income from a part-time job alone can enable an athlete to put food on their family’s table, provide their siblings with clothes and school supplies, or even keep the lights on when parents may struggle to make ends meet.
NIL allows athletes to learn about themselves. Taking risks and learning how to fail is sometimes easier done when you’re younger. With NIL, athletes can test out different business ideas, learn from mistakes, and create bigger and better business concepts while they’re in school. This process helps students and future business leaders learn more about themselves, while helping them decide if that business endeavor has potential.
Outlets for Charity. Not all NIL dollars go right back into athletes pockets. There are many student- athletes who use their earnings to raise funds for charities they’re passionate about. Non-profits also benefit from increased visibility which is super helpful when so many organizations need support.