Some college athlete NIL deals make headlines. Most don't

It’s been almost four years since the NCAA decided that college students could make money from their name, image and likeness (NIL). 

Since then, the NIL market has exploded. Students can ink brand deals as simple as getting free pizza in exchange for an Instagram post, or much larger, like WNBA basketball star Angel Reese scoring an endorsement deal with McDonald’s. 

But the effects of the NIL ruling vary, and it's worth asking whether it has been good for college athletes on the whole.

How much does the average athlete earn?

NIL rules allow students to make money advertising for third-party companies, creating their own products and brands or even receiving money directly from schools.

The first option is the one that most people think about when they imagine NIL money, like a local restaurant paying a college basketball player to shoot a couple of TikTok videos.

Some athletes set up affiliate deals with brands, where they receive a portion of each sale. For example, you may have to use a special promo code for them to receive credit for the deal.

The third option is the NIL Collective, which is like a booster club for college. In short, it means that schools can crowdfund money from alumni, fans and generous donors to pay athletes directly. 

“It’s what we would have historically called payola,” said NIL professor and lawyer Robert Boland, a former college athlete.

And starting in 2025, some colleges will be able to directly give money to athletes, outside of the school’s collective. Schools will be able to dish out $20 million to athletes.

Just like deals for professional athletes, NIL deals vary significantly. For example, while the average college football player earns about $3,400 a month, a football player at Auburn University earns almost double that — $7,400 per month.

Even though million-dollar deals generate headlines, most college athletes aren’t getting rich off their NIL deal. According to NCAA data, the median total earnings per athlete in 2024 was about $500, while the average total earnings per athlete was about $21,331. In fact, more than half of all NIL deals were worth $100 or less. 

Still, Boland says that "is not insignificant to a college athlete, particularly if they may come from a disadvantaged situation."

"Maybe it means they don’t have to work during the school year. Maybe it helps them develop some skills around selling themselves, “ Boland said.

Does the NIL help athletes?

The NIL is still controversial. Some people say that it’s corrupted the college game and blurred the lines between a student-athlete and a professional athlete. Others say it’s only fair that students get paid when college athletics are a $19 billion industry.

Others say it’s not an equitable process. Students in certain sports, like football and basketball, are more likely to be top earners. 

In a 2024 NIL ranking, only one athlete in the top 10 wasn’t a football or men’s basketball player (LSU gymnast Livvy Dunne). Even though athletes like Reese get headlines for scoring $2 million in NIL deals, men are primarily the beneficiaries of the program. 

However, Boland says he thinks that the NIL deals are making women’s sports more popular with fans. With the rise of stars like Caitlin Clark and Reese, the WNBA is seeing a trickle-down effect that began with the NIL deals. 

“I think it has been very favorable to women’s athletes and women’s sports,” Boland. “It’s not equitable, but it’s been beneficial.”

This also provides more chances for female alumni to choose to donate to a collective for women’s sports, instead of men’s.  

“I can certainly see successful women alumni who want to decicate money to women’s athletics,” said NIL agent Bob Zito.

The NIL market gives athletes potentially more time to develop before going pro. If they can still make decent money in college, they don’t have to sacrifice their degree to make a living. Many athletes felt pressured to sign a rookie contract so they could monetize their skills, even if it meant going pro before they were physically, mentally and emotionally ready.

“It has given athletes some measure of financial independence based on their college play,” Boland said. “It isn’t enough to take the place of turning pro. It isn't going to be life-changing money in most cases, but it does give you some cushion of when to make decisions like when to turn professional or how to value your education.”

Even high school athletes can now make money, like AJ Dybantsa, a high school basketball player whose NIL valuation is about $2 million.

Your average college soccer, cross country or golf athlete isn’t likely to see a huge difference in their bank account. But it could be enough to provide some breathing room in their budget, especially since they likely don’t have the time for a part-time job like other students.

What are the downsides of NIL?

Sometimes deals fall through, like in the case of football player Jaden Rashada. He was promised $13 million from the University of Florida, but the deal ultimately collapsed. Rashada ended up suing the school. 

With the proliferation of NIL collective payouts, more stories like this are likely to pop up.  

“It’s now extremely important that players know how schools and coaches are operating in the new environment,” Zito said.

Zito also said some schools are becoming savvy and trying to avoid paying students who enter the transfer portal. For example, they may pay less during the academic year and pay more once the season ends. This penalizes players who enter the transfer portal and leave.

“In the case of basketball, if the player enters the transfer portal, the deal is null and void,” Zito said. “That is another contract that we would never encourage one of our athletes to sign.”

The reverse is also true. If an athlete looks for an agent, they need to vet them carefully since agents advise on the best decisions and can make or break careers.

Overall, it's hard to say how NIL rules will shake out in the end. But for now, the NIL — like sports betting — is here to stay.

“It’s a new world and that last chapter hasn’t been written yet,” Zito said. “There’s going to be lots and lots to go over.”