How NIL rights can impact pro sports

Name, image and likeness (NIL) rights are dominating sports headlines in 2024, most notably in late May when the NCAA finally came to their senses and voted to approve payments to past and current college athletes in an effort to settle a $2.8 billion antitrust lawsuit.

Paying collegiate athletes is still in its infancy and though dollar values are available (though somewhat speculative), the full magnitude of NIL guidelines allowed by the NCAA on college sports is still being measured. In the short term, our athletes will enjoy new opportunities to earn adequate compensation for their skills and talent, many with national exposure.

These guidelines have a long-term impact as well. Players’ off-the-field bankability adds new statistics to their profiles. This can make all the difference in various ways – from the position in the draft round to whether an athlete decides to complete their academic career even if eligible to go pro.

Let’s examine the ways in which the current NIL rules could affect professional sports drafts, and specifically professional football.

NFL draft: The prime example

Gallup has reported that football is the most popular sport in the U.S. since 1972. In fact, a December 2023 Gallup poll noted that 41% of U.S. adults say football is their favorite sport to watch. Baseball and basketball were ranked a distant second at 10% and 9%, respectively.

Furthermore, the National Football League (NFL) draft is the standard bearer for sports drafts. Though each team has a roster of 53 (with 16 more on the practice squad), competition to remain in the NFL is fierce and there are limited openings on any given franchise. This supports why football is so popular among college sports and one key acquisition during the draft can turn a low-ranked NFL team into a playoff contender.

Most NFL careers are very short and come with a high risk of injury. Fortunately, there is the potential for on-the-field greatness, millions in salary, endorsements, and a well-earned post-sports career and pension.

A football journey almost always financially begins while in college, and the player’s decisions have long-term financial consequences while made there.

On staying in school

With no limit on NIL earnings potential, players enjoy a long overdue level of autonomy and can take more responsibility for their own paths in school, sports, academics and personal finance.

This ability has given them more bargaining power when presenting themselves for the professional draft. They know their value and can be more strategic about when they want to move up. Players already making significant income from NIL deals may now be less motivated to enter the draft too early for financial reasons, especially if they feel they can improve their draft stock by staying in college.

Their families may further support this decision, as the ability to receive a quality college education while still competing at a high level – all the while making a significant income – might be a practical balancing act. These students might be the first in their families to attend or graduate from college, and that could be a factor in the decision to wait.

Staying in school has other long-term benefits as well. College athletes who can capitalize on their NIL rights may build larger personal brands during their college careers. Thanks to social media and technology, college students today are more brand-savvy and entrepreneurially focused than ever. This increased visibility and marketability could potentially affect their draft stock, as NFL teams may value players with strong personal brands and larger fan bases.

A stronger interest from scouts and pro teams

It is for many of the aforementioned reasons that professional leagues will change or possibly intensify their recruitment efforts.

If more players stay in school to build their brand or pursue their education, it could mean a shortage of experienced talent in the next few drafts. It could also start a new trend, as well; with more experienced players entering the draft, scouts and teams will have a better sense of players’ skill levels and make more informed decisions.

Furthermore, professional teams may look beyond their statistics to analyze the audience that could follow their picks. While athletes are not required by the NCAA to disclose the value of their deals, it is still currently reported by sites and marketing agencies. A pro team previously looked to the popularity of the player at their school and what they achieved on the field, but only had projections on the sponsorship draw. With actual benchmarks now publicly available, and soon players paid by their school, teams’ front offices have data points on who will draw (or repel) corporate sponsors and influence merchandising.

Most sports stakeholders, especially those in the business of recruiting, developing a franchise and even building a dynasty, want an athlete who can capture the attention of fans – in-person, on-screen and via social media. These extra key performance indicators could be leveraged by tenacious agents, potentially impacting players’ decisions about entering a draft and their readiness for the professional level.

NIL influencing how the draft game is played

The chance to play at the professional level will undoubtedly change the trajectory of any athlete’s life as well as that of their family. The tradition of sacrificing a college career for one in sports is poised for change, and now that athletes can tap into a revenue stream that finally can coincide with their studies. A deeper or more diverse talent pool could emerge, changing the trajectory of the professional leagues for the short- and long-term.

Most importantly, now that our college players have a better benchmark for their monetary value, they will experience different levels of pressure from scouts, schools and families. Sports lawyers must consider these risks and opportunities and help our athletes develop the strategies that best serve their academic and professional aspirations.