Small School, Big Bucks?

On June 21, 2021, the Supreme Court decided the case of the National Collegiate Athletic Association (NCAA) v. Alston.  In this case, the court determined that the NCAA could not restrict student athlete compensation.  

 

As a result, the NCAA changed their long-standing name, image and likeness (NIL) policy which now allows student athletes to profit from their NIL.  The interim policy went into effect on July 1, 2021, and is the current policy that the association goes by.  

 

According to a statement released by the NCAA, in the near future, there will likely be an overarching federal set of guidelines.  Association president Mark Emmert, upon revealing the interim NIL policy said, “With the variety of state laws adopted across the country, we will continue to work with Congress to develop a solution that will provide clarity on a national level. The current environment — both legal and legislative — prevents us from providing a more permanent solution and the level of detail student-athletes deserve.”  

 

However, until the permanent national policy is created, student athletes must be aware and abide by individual state and collegiate guidelines.  

 

Since the policy has changed, student athletes have been able to acquire deals worth up to $8 million, according to USA Today.  

 

However, student athletes across all schools, not just institutions famous for athletics, can benefit from the policy change.  The change in NIL policies means students are able to receive discounts from local businesses, sign brand deals and promote their own businesses.  

 

According to Mercer Athletics’ Director of Compliance Matt Badik, under the previous NIL policy, student athletes could not promote their own business ventures because it would include using their name, image or likeness.  Badik explained that there were ways to work around the policy, like differentiating between personal and business social media accounts.  

 

Still, Badik asked, “Why do they have those in place, especially if it’s for their own business?”

 

Under the new NIL policy, student athletes who double as entrepreneurs do not have any extra guidelines to abide by.  

 

In fact, the change in policy effectively put student athletes back on the same level as other students.  Student athletes can now post branded products and enter social media giveaways without risking an NIL violation.  

 

“That's kind of been a relief,” Mercer Athletics’ Assistant Athletic Director for Compliance John Peach said.  

 

Previously, Peach said the athletics department would have to reinstate the athlete, where he or she would pay money to a charity to offset the endorsement.  Now, the student athlete, according to Mercer’s individual NIL policies, simply has to notify the university of the post.  

 

Despite the benefits for collegiate athletes, the NIL policy change poses a recruiting threat for universities.  

 

Since the policies are not regulated across the country yet, some schools allow for NIL deals to be included in a recruiting package.  

 

Mercer’s NIL policy states that “Mercer University, the athletic department, staff members or boosters may not compensate or arrange compensation to a current or prospective intercollegiate athlete for her or his name, image and likeness.”  

 

Although Mercer as an institution has made the decision to separate NIL deals from recruiting, some schools looking to recruit the same athletes have not.  

 

Peach recalled an instance where Mercer lost a recruiting battle, likely due to differing NIL policies.  

 

“We thought we had a real shot at him,” Peach said, “and suddenly, his parents asked our coaches ‘What’s your name, image and likeness deal for our son because so-and-so institution has guaranteed $100,000.’” 

 

“We just let him go,” Peach said.  

 

So far, the change in NIL policies has given the power over their image back to student athletes instead of allowing the NCAA to profit as an organization.  

 

However, for small school student athletes especially, there is still a lot of ground left uncovered.  

 

“I think it’s pretty new in the local community, too,” Badik said, “So I think in the future, you’ll also see more of the local community stepping up and endorsing student athletes.”