NIL Deals: Leveling the Playing Field for Athletes?

After years of following rules that prohibited compensation, college athletes can now officially earn
money through their sports. This change first came in 2021, when the NCAA implemented an interim policy allowing athletes to profit from their name, image, and likeness
(NIL). Previously, college athletes were considered amateurs, and any financial gains went to their universities. The NIL policy has since enabled student-athletes to monetize their personal brands through
brand deals and collectives.

Brand deals are when athletes sign with different
companies and post about them on their social media pages to receive compensation. For example, former University of Iowa basketball star Caitlin Clark earned over $3.1 million from eleven deals with companies, such as Nike, Gatorade and State Farm. Regarding these deals, Emelyn Gray ’26 said, “I think this is an important step for student athletes to profit off of the deals rather than the institutions.” Kaitlyn Miller ’25, a prospective athlete, was more skeptical: “I was scared to sign up [initially] because I thought it was a scam.”

The other aspect of NIL deals involves collectives — funds established by alumni and supporters, known as boosters, who work with specific athletic programs to benefit and monetize student-athletes. These collectives operate independently of universities and can receive funds from boosters to create various deals and help athletes profit from their brands. Football and basketball players, whose sports generate the most revenue due to their high visibility, benefit the most from collectives. In 2023 alone, the NCAA earned over $1 billion in revenue from the March Madness tournament, and college football programs brought in over $100 million for 13 teams, according to news reports.

NIL deals involve strict rules that often make them difficult for athletes to navigate. For example, NCAA bylaws hold that boosters are forbidden from being
involved in the recruiting process, and are not allowed to contact prospective athletes in person or virtually. Violations of this rule (and others) could result in the athlete losing playing eligibility, the school losing membership with the NCAA, or a booster’s inability to donate to collectives. Eric Roberts ‘25 stated, “I think it is weird that you can lose your eligibility for violating your contract because
of some small technical issue that has nothing to do with [playing] your sport.”
Depending on their state’s laws, upcoming high school athletes can also sign their own brand deals with companies. Jackson Mokotoff ’25 said, “When high schoolers get an NIL deal, it’s usually the brand
hoping the athlete will become a big name.” Once athletes officially become college students, boosters
are able to engage them in official NIL deal discussions. Annie Gnidula ’25 said, “[High school deals] allow athletes to capitalize on their personal brands, giving them opportunities to earn money through endorsements, sponsorships, social media, and other ventures. This shift not only provides finan-
cial benefits, but also empowers athletes to gain valuable business and marketing experience while still in school.”

Members of the Hopkins community have mixed opinions on NIL deals. Suki Sze ’25 said, “I
think [NIL deals] are valid because most athletes cannot work jobs because of practice, so they need to find
money elsewhere.” For his part, Athletic Director Rocco DeMaio ’86 said, “I like the idea of student-athletes having the opportunity to share in the big business that col-
lege sports have become.” DeMaio worries about transfer portals, which allow students to switch schools based on how much they will earn: “When it turns into a biding war for top players and decisions are made based on the amount of money offered, then I don’t like it.” DeMaio noted that this policy, and NIL deals in general, are “changing the landscape of college and high school athletics.” Josie Lipcan ’25 agreed, and added that NIL deals can “lead to a massive overhype of certain athletes.”

As the opinions of those involved with Hop-kins athletics show, the concept of NILs is still in its early stages and can be complex. Still, the combination
of brand deals and collectives has empowered athletes to profit from their contributions to their universities’ athletic programs. Gnidula summed it up: “It helps level the playing field, as athletes can now receive compensation that reflects their contributions to their schools and sports.”