Preparing the next generation of women athletes for NIL opportunities

Some say the success of women's sports in recent years is largely attributed to the opportunities offered via college athletics and Olympic games. Top sports such as basketball, gymnastics, and softball have their built-in fanbases at schools and thanks to new rights allowing players to license their name, image, and likeness (NIL), they have the long overdue ability to attract sponsors and earn real compensation.

Women's professional leagues have not yet fully harnessed the excitement of collegiate and Olympic play, and thus have not been substantial revenue generators. Armed with this fresh perspective, female athletes should strategize with their lawyers and agents earlier than they may have anticipated in order to ensure their earnings potential.

A look at the numbers

The Women's National Basketball Association (WNBA) is perhaps the most recognizable women's professional sports league. In June, the league had its highest-attended opening month in 26 years, thanks to the debut of phenoms such as Caitlin Clark and Angel Reese.

This stellar showing is obviously a great jump start for the sport, but time will tell if new rookie classes will drive sufficient revenues that elevate and sustain the league and hook a new generation of fans.

According to Statista, the estimated revenue of the WNBA totaled approximately $200 million in 2023. This is the equivalent of 2% of the revenues generated by the NBA, which raked in more than $10 billion in the 2022-23 season.

This inequity has been the norm for years due to a variety of reasons; the NBA was founded in 1949, nearly 47 years prior to the WNBA's launch, and was able to tout the accomplishments of some of the best athletes in any sport. By the time of the WNBA's unveiling in 1996, Michael Jordan and the Chicago Bulls were just starting their second championship three-peat. The NBA drew attendance, ratings, and revenues, and over time was able to pay its players quite well and has done so steadily.

Statista also reported that NBA players took home an average annual salary of more than $10 million for the 2023-24 season, with the league's minimum salary set at $1.12 million that year. The WNBA has a long way to go to match as its players received an average annual pay of $116,500, with the highest-earning players in the WNBA receiving around $242,000.

By contrast, On3 estimated Caitlin Clark's NIL valuation to be more than $3 million earlier this year, ahead of her entering the WNBA. This was thanks to NIL deals with globally recognizable brands such as Gatorade, State Farm, and Nike. It is reasonable to assume she lawyered up prior to signing any of these long-term agreements.

These numbers are not the be all end all, nor are they meant to discourage. Today the reality is that most athletes will enjoy only a few years of professional play, and now that players have NIL rights, they can access alternative sources of revenue.

Leveraging NIL rights while hitting the books

Sports careers tend to average less than five years each. Women's athletic careers can be even less predictable, shortened or put on a hiatus due to pregnancy and motherhood, which is why our women need to be more vigilant about the role sports will play in the grand scheme of their lives.

Female athletes need to leverage the opportunities afforded by the new NIL landscape while they can. This includes:

1. Build a brand. Partnering with local businesses or national brands can provide financial support and increase an athlete's visibility. College athletes can further capitalize on their social media presence by partnering with brands for sponsored posts, product placements, and endorsements. Building a personal brand on platforms like Instagram, TikTok, and YouTube can attract lucrative deals from companies looking to reach the athlete's audience.

2. Merchandising. Athletes can design and sell their own merchandise, such as clothing, accessories, and other branded items. This can be done through personal websites or platforms like Etsy and Shopify. Personalized merchandise can include autographed items, custom apparel, or other goods that resonate with their fan base.

3. Hosting camps and clinics. Athletes can leverage their expertise and local popularity by hosting sports camps, clinics, and training sessions. These events can be a significant source of income and provide valuable engagement with the community. They can also offer virtual training sessions or create subscription-based content for fans and aspiring athletes.

Today, there are various outlets and avenues for any athlete to participate in. Many of these student athletes need to be conscientious of how easy it is to be inundated with short-term deals that can divert them from better, longer-term opportunities.

Why females should prepare for sports careers earlier than anyone

A career in professional sports is incredibly difficult to achieve, and the time in which an athlete has to prove themselves is limited. While the greater earnings potential for men tends to be in the pros, the most advantageous time for women is currently during college. Young women (and their families) need to consider the earnings potential of sports careers during high school, particularly if they are being scouted by colleges and universities.

Sports lawyers can help their athletes make wise decisions, including:

·Navigating the NIL landscape and providing counsel on what particular schools and states allow in the way of endorsements.

·Ensuring students do not unwittingly sell lifetime rights, and that their NIL agreements have strategic, long-term value.

·Proper use of the very busy transfer portal. Entering the portal and not transferring, for example, can jeopardize scholarships as well as a player's reputation.

·Positioning players for a professional career and preparing them for their new financial wealth. Further, the lawyer will draft agreements to ensure past NIL deals do not interfere with future contracts.

NIL rights and possibilities are being explored regularly, as stakeholders on all sides want to benefit from this previously untapped source of revenue. Unfortunately, unscrupulous actors will emerge, just as they do at the professional level. Though the current temptation to sign a life changing six-figure NIL endorsement will be strong, players will need legal guidance to monetize and recognize the difference between being marketable and being exploited.