‘Arms race’: NIL compensation now a potent recruiting weapon
STEVE MEGARGEE AP Sports Writer
Wake Forest coach Dave Clawson remembers the old days of college recruiting.
“You used to talk about graduation rates and majors,” Clawson said. “Now the first question is, ‘What are you guaranteeing me year one, two, three and four?’”
Clawson isn’t necessarily talking about playing time, either. After more than a year, prospects are far more familiar with ways they can profit off their fame through endorsement deals and are looking hard at whether schools can help them do it.
That’s not how it’s worked out. Pay-for-play situations or improper inducements are still banned, but there is nothing stopping colleges from letting recruits know how athletes on campus are already profiting through NIL deals and how much support is available to them if they’re interested.
“It’s basically becoming an arms race,” said Andy Stefanelli, the football coach at Our Lady of Good Counsel in Olney, Maryland, which has a handful of top recruits, according to composite rankings of recruiting sites compiled by 247Sports. “It’s going to be, I think, as much of a factor in recruiting as anything else – facilities, winning, coaching, all that. It’s going to be right up there with those factors for kids, at least for the high-level recruits.”
The Howards say that every college they visited during Jaxon’s recruitment used the same approach in addressing NIL issues. Each would discuss opportunities athletes had received while pointing out that nothing’s guaranteed and recommending that recruits don’t pick a school based on NIL possibilities.
“The message was always the same,” Willie Howard said. “It felt like it was cookie-cutter at times because it’s like, ‘We’re not going to be stuck with NCAA compliance coming after us and saying that we’ve done something we’re not supposed to do.’“
Jaxon Howard recently hired an agent, as the state of Minnesota allows high school athletes to explore NIL opportunities. But he added that NIL wasn’t a factor in his college choice.
“I don’t want to put my whole focus on something like name, image and likeness when my end goal is to make a multimillion-dollar deal one day in the NFL,” he said.
Still, On3 surveyed 85 notable 2023 recruits and found that 30% of them would be willing to attend a school that isn’t an ideal fit from a football or academic perspective if that’s where they could get the best NIL deal.
Stefanelli says he hears the complaints from college coaches who visit his school.
“Frankly, some of them were saying, ‘Yeah, we’re losing recruits because X, Y or Z school is throwing a bunch of money at them,’” Stefanelli said.
The issue has crept into some of the public comments from coaches, which could be seen as indirect recruiting pitches. Alabama’s Nick Saban said last month that his players made more than $3 million in NIL deals over the last year and his SEC rival, Georgia’s Kirby Smart, got even more specific.
“We may have had the highest-paid defensive lineman last year in NIL in Jordan Davis,” Smart said. “We had the highest-paid tight end in Brock Bowers. Kelee Ringo I would argue is probably one of the highest-paid corners there is in NIL. So NIL can be a good thing, and they can learn to manage money at a young age.”
Many coaches say they would like more oversight from the NCAA with different state laws in place across the country. Saban and Texas A&M coach Jimbo Fisher swapped barbs over the summer over the allegation that the Aggies had “bought” the nation’s top-ranked recruting class.
“Change is inevitable,” Fisher said. “That’s the rules we have to play by, so we all have to adapt and adjust.”
There are ways in which schools can make their NIL cases directly to prospects – or players who have entered the transfer portal – without flat-out offering them incentives.
Many have hired staffers to work on maximizing NIL opportunities for athletes already on campus. Some have partnered with groups that can advise them on what they’re permitted to say to recruits on NIL-related matters.
“What we work with them on is what do you know, how do you sell your program, what is your program’s philosophy and how do you integrate NIL within that without making it solely just about a dollar amount that is sometimes actually being offered or what the media is reported is being offered,” said Celine Mangan, a senior account executive with Altius, whose client list of about 30 schools includes Georgia, LSU and Texas among others.
Schools need to have a good idea of what to say about NIL issues because prospects certainly are asking about them.
“Some kids will come in your office and it’s the first question they ask,” Boston College coach Jeff Hafley said.
They’re not just asking the coaches. Upperclassmen are fielding NIL-related questions from prospects.
“That’s probably one of the top questions is, you know, like the NIL deal thing,” TCU wide receiver Quentin Johnston said. “But the thing with recruits, they always come in and think, you know, that NIL is just a given.”
Johnston says he reminds recruits that NIL deals come only after players have done the work on the field, in the classroom and in the community.
As for those conversations Clawson has with Wake Forest recruits, he says he keeps any NIL-related discussions within both the letter and spirit of NCAA rules. But he adds that “clearly that’s not happening” everywhere.
“That is gone,” Clawson said. “I don’t see there’s any way that’s going to come back.”
NFL star J.J. Watt offers to help woman pay for funeral so she can keep his shoes, jersey
Reed Hoffmann
After the first year of college sports’ name, image and likeness era, football and men’s basketball still claim the throne for the number of deals and average compensation, and social media remains the most popular way to get that NIL money.
The total amount spent was about $917 million, NIL platform Opendorse estimated.
An average football deal comes out to nearly $3,400 on two platforms. And while softball and women’s basketball generally landed in the top five overall, when you subtract football, women’s sports are getting more deals than men’s sports, Opendorse said. Female gymnasts make big bucks, too: about $7,000 on average per deal, according to NIL platform INFLCR.
A full accounting of the first year of NIL, from July 1, 2021, to June 30 is hard to come by, for numerous reasons. The majority of schools don’t make public the number of deals and amounts their athletes have received (though a couple have divulged some information in what could be considered recruiting or marketing strategy).
There also is no central framework for how and when deals should be reported.
“You have all of these different stakeholders involved in this ecosystem and a lack of consistency, not just in platform where information is being reported, but in requirements relative to what information is necessary,” said Andrew Donovan, the executive vice president of collegiate partnerships at Altius Sports.
So it's up to major NIL tech platforms — some of which facilitate deals and disclosures, and others disclosures only — to fill in the gaps. Sort of.
“I know that what’s being reported is not a full picture," said Donovan, whose organization works with 30 schools on education and strategic guidance and talks with donors, boosters, corporate partners and others. "... Athletes are regularly acknowledging to us that they’re not disclosing. Schools are regularly communicating the struggles that they’re having getting athletes to disclose ... It’s very clear that this is not a full, complete picture of what’s going on in the NIL space.”
What lies ahead for Year 2, beyond maybe new laws or group licensing? Opendorse thinks it's the potential of NIL spending topping more than $1 billion.
An estimated $607.4 million could go to Power Five schools, with an average annual compensation $16,074 per athlete, Opendorse said. Already, about three-fourths of the known or forming collectives, which are third-party NIL kingmakers made up of school donors and boosters, are connected to Power Five schools.
Athletes' deals with brands — from financial businesses to apps to fashion — will likely rise, too. Opendorse projects that brand deals will encompass 64% of all NIL compensation in Year 2 and bring in about $730.4 million.
Donovan, a former president of the National Association for Athletics Compliance, also believes there will be more importance placed on helping athletes understand tax implications of NIL deals: “There's several schools across the country that are doing a good job there, but that needs to be built out as we see these large financial figures."
Reed Hoffmann
After the first year of college sports’ name, image and likeness era, football and men’s basketball still claim the throne for the number of deals and average compensation, and social media remains the most popular way to get that NIL money.
The total amount spent was about $917 million, NIL platform Opendorse estimated.
An average football deal comes out to nearly $3,400 on two platforms. And while softball and women’s basketball generally landed in the top five overall, when you subtract football, women’s sports are getting more deals than men’s sports, Opendorse said. Female gymnasts make big bucks, too: about $7,000 on average per deal, according to NIL platform INFLCR.
A full accounting of the first year of NIL, from July 1, 2021, to June 30 is hard to come by, for numerous reasons. The majority of schools don’t make public the number of deals and amounts their athletes have received (though a couple have divulged some information in what could be considered recruiting or marketing strategy).
There also is no central framework for how and when deals should be reported.
“You have all of these different stakeholders involved in this ecosystem and a lack of consistency, not just in platform where information is being reported, but in requirements relative to what information is necessary,” said Andrew Donovan, the executive vice president of collegiate partnerships at Altius Sports.
So it's up to major NIL tech platforms — some of which facilitate deals and disclosures, and others disclosures only — to fill in the gaps. Sort of.
“I know that what’s being reported is not a full picture," said Donovan, whose organization works with 30 schools on education and strategic guidance and talks with donors, boosters, corporate partners and others. "... Athletes are regularly acknowledging to us that they’re not disclosing. Schools are regularly communicating the struggles that they’re having getting athletes to disclose ... It’s very clear that this is not a full, complete picture of what’s going on in the NIL space.”
What lies ahead for Year 2, beyond maybe new laws or group licensing? Opendorse thinks it's the potential of NIL spending topping more than $1 billion.
An estimated $607.4 million could go to Power Five schools, with an average annual compensation $16,074 per athlete, Opendorse said. Already, about three-fourths of the known or forming collectives, which are third-party NIL kingmakers made up of school donors and boosters, are connected to Power Five schools.
Athletes' deals with brands — from financial businesses to apps to fashion — will likely rise, too. Opendorse projects that brand deals will encompass 64% of all NIL compensation in Year 2 and bring in about $730.4 million.
Donovan, a former president of the National Association for Athletics Compliance, also believes there will be more importance placed on helping athletes understand tax implications of NIL deals: “There's several schools across the country that are doing a good job there, but that needs to be built out as we see these large financial figures."
NFL star J.J. Watt offers to help woman pay for funeral so she can keep his shoes, jersey
Wilfredo Lee
It's a broad range. INFLCR’s overall average NIL transaction value is $1,815 through June 30. Athliance, another disclosure platform, has an average value of $1,524.58. Though the true picture may lie in INFLCR’s median NIL transaction value of $53.
The Opendorse platform said average annual compensation for an athlete in NCAA Divisions I-III combined is $3,438 ( through May 31). By division, DI athletes saw an average of $3,711, $204 in DII and $309 in DIII.
Football NIL deals tend to be hefty, with an average of $3,390.95 on Athliance and $3,396 on INFLCR. Opendorse broke down average compensation per football position, ranging from $403 for a specialist, $758 for the defensive line and $2,128 for quarterback.
Women's sports overall received $1,084 on average for an NIL deal, per INFLCR, with women's gymnastics soaring to a $7,054 average.
Some of the average transaction figures for nonrevenue sports through May 31 on INFLCR were surprising: $8,967 for swimming and diving, $6,087 for rifle and $4,813 for men's golf — all higher than football and in the platform's top five. Athliance cited an average of $1,850 for hockey, $1,400 for waterskiing and $1,026.67 for indoor track and field.
Wilfredo Lee
It's a broad range. INFLCR’s overall average NIL transaction value is $1,815 through June 30. Athliance, another disclosure platform, has an average value of $1,524.58. Though the true picture may lie in INFLCR’s median NIL transaction value of $53.
The Opendorse platform said average annual compensation for an athlete in NCAA Divisions I-III combined is $3,438 ( through May 31). By division, DI athletes saw an average of $3,711, $204 in DII and $309 in DIII.
Football NIL deals tend to be hefty, with an average of $3,390.95 on Athliance and $3,396 on INFLCR. Opendorse broke down average compensation per football position, ranging from $403 for a specialist, $758 for the defensive line and $2,128 for quarterback.
Women's sports overall received $1,084 on average for an NIL deal, per INFLCR, with women's gymnastics soaring to a $7,054 average.
Some of the average transaction figures for nonrevenue sports through May 31 on INFLCR were surprising: $8,967 for swimming and diving, $6,087 for rifle and $4,813 for men's golf — all higher than football and in the platform's top five. Athliance cited an average of $1,850 for hockey, $1,400 for waterskiing and $1,026.67 for indoor track and field.
NFL star J.J. Watt offers to help woman pay for funeral so she can keep his shoes, jersey
Jeff Roberson
As of June 20, men's sports received 62.7% of total compensation in the NCAA and NAIA combined, compared with 37.3% for women's sports, Opendorse said. Remove football and women flip it to 52.8% vs. 47.2% for men. The difference in Division III was stark through May 31: 82.9% men vs. 17.1% women.
Football (49.9%) and men’s basketball (17%) dominated total NIL compensation by sport in Opendorse's platform through June 20, with women’s basketball (15.7%), women’s volleyball (2.3%) and softball (2.1%) rounding out the top five. Football also took the top spot in INFLCR's number of NIL transactions through May 31 with 23.7%, followed by men’s basketball (22.3%), softball (8.2%), baseball (6%) and women’s basketball (4.7%).
When it comes to total NIL activities, Opendorse says football (29.3%) is the leader, then baseball (8%), men’s basketball (7.6%), women’s track and field (5.6%) and women’s volleyball (5.5%).
Donor money also favors men's sports — a whopping 93% of it, Opendorse said. The average monthly compensation from donors at the DI level is $1,012.
Meanwhile, 91% of all women’s NIL activities are brand-related on Opendorse's platform, but 62% of all brand compensation went to men's sports.
Jeff Roberson
As of June 20, men's sports received 62.7% of total compensation in the NCAA and NAIA combined, compared with 37.3% for women's sports, Opendorse said. Remove football and women flip it to 52.8% vs. 47.2% for men. The difference in Division III was stark through May 31: 82.9% men vs. 17.1% women.
Football (49.9%) and men’s basketball (17%) dominated total NIL compensation by sport in Opendorse's platform through June 20, with women’s basketball (15.7%), women’s volleyball (2.3%) and softball (2.1%) rounding out the top five. Football also took the top spot in INFLCR's number of NIL transactions through May 31 with 23.7%, followed by men’s basketball (22.3%), softball (8.2%), baseball (6%) and women’s basketball (4.7%).
When it comes to total NIL activities, Opendorse says football (29.3%) is the leader, then baseball (8%), men’s basketball (7.6%), women’s track and field (5.6%) and women’s volleyball (5.5%).
Donor money also favors men's sports — a whopping 93% of it, Opendorse said. The average monthly compensation from donors at the DI level is $1,012.
Meanwhile, 91% of all women’s NIL activities are brand-related on Opendorse's platform, but 62% of all brand compensation went to men's sports.
NFL star J.J. Watt offers to help woman pay for funeral so she can keep his shoes, jersey
Social media remains supreme for NIL activity/transactions — 67.6% from Opendorse and 61% from INFLCR, both as of June 30. The average value of a social media NIL transaction is $905 and the median is $50, INFLCR said.
Multi-activity brand endorsement — endorsing something more than once — has a major share in Opendorse's platform at 24.4% of NIL compensation. When it comes to brand activity, 36.73% is licensing rights for an average of $9,877 per deal and 34.19% is posting content with an average of $156 per post.
Social media remains supreme for NIL activity/transactions — 67.6% from Opendorse and 61% from INFLCR, both as of June 30. The average value of a social media NIL transaction is $905 and the median is $50, INFLCR said.
Multi-activity brand endorsement — endorsing something more than once — has a major share in Opendorse's platform at 24.4% of NIL compensation. When it comes to brand activity, 36.73% is licensing rights for an average of $9,877 per deal and 34.19% is posting content with an average of $156 per post.
NFL star J.J. Watt offers to help woman pay for funeral so she can keep his shoes, jersey
Wilfredo Lee
Ohio State says its athletes have gotten more than 1,000 NIL deals since July 1, 2021 — up from about 600 worth a total of $2.98 million at the six-month mark.
Kansas athletes inked 219 deals from July 1, 2021, to May 5 — a period that includes the Jayhawks winning the men's NCAA basketball tournament — for a total value of $380,915.01, according to public records obtained by the Topeka Capital-Journal. The majority of deals were for less than $1,000.
At least one Kansas athlete from all 18 sports had at least one deal, according to a recent release from the school.
And at Norfolk State, running back Rayquan Smith let everyone know he has 66 NIL deals, calling himself the “ King of NIL.”
Wilfredo Lee
Ohio State says its athletes have gotten more than 1,000 NIL deals since July 1, 2021 — up from about 600 worth a total of $2.98 million at the six-month mark.
Kansas athletes inked 219 deals from July 1, 2021, to May 5 — a period that includes the Jayhawks winning the men's NCAA basketball tournament — for a total value of $380,915.01, according to public records obtained by the Topeka Capital-Journal. The majority of deals were for less than $1,000.
At least one Kansas athlete from all 18 sports had at least one deal, according to a recent release from the school.
And at Norfolk State, running back Rayquan Smith let everyone know he has 66 NIL deals, calling himself the “ King of NIL.”
‘Arms race’: NIL compensation now a potent recruiting weapon
Brynn Anderson
FILE - Georgia head coach Kirby Smart speaks with Alabama head coach Nick Saban before the first half of the Southeastern Conference championship NCAA college football game, Saturday, Dec. 4, 2021, in Atlanta. When the NCAA instituted a policy last summer allowing athletes to earn money off use of their name, image and likeness, the notion was that it would give players a chance to make a little money but wouldn’t be used as a recruiting weapon. That’s not how it’s worked out. (AP Photo/Brynn Anderson, File)
Brynn Anderson
FILE - Georgia head coach Kirby Smart speaks with Alabama head coach Nick Saban before the first half of the Southeastern Conference championship NCAA college football game, Saturday, Dec. 4, 2021, in Atlanta. When the NCAA instituted a policy last summer allowing athletes to earn money off use of their name, image and likeness, the notion was that it would give players a chance to make a little money but wouldn’t be used as a recruiting weapon. That’s not how it’s worked out. (AP Photo/Brynn Anderson, File)