Taylor: Checking in on the new NIL market

The Supreme Court opened the door for amateur athletes to earn money from their "name, image, and likeness" (NIL) in July 2021. Universities are responding to the new market opportunity with the fervor of Mad Men. NIL collectives work roughly like alumni athletic booster clubs. University of Texas at Austin was quick to announce a $10 million commitment for athletes based on this model. Online marketplaces offer contracts with athletes for endorsements, autographs, video “shout-outs” or personal appearances.

Athletes with a de minimus social media platform can get autographs, appearances and video shout-outs for $11. As Instagram followers rise, the cost increases to $80 or $200. Seven Texas football players can command $2,500 for the same services.

Arch Manning is a high school quarterback-recruit from New Orleans. He is the grandson of Archie and nephew of Peyton and Eli Manning. His NIL potential is second only to Lebron James’ son, a basketball-playing high-school senior in California.

Taylor is interested in the NIL market. He visited Jim Thorpe, Pennsylvania, named for an early 20th-century sports god. Thorp won the Olympic gold medal in both the pentathlon and the decathlon in 1912. After the Olympics, Thorper played professional baseball between 1913 and 1919 and professional football for the NFL in 1922. Caesars Entertainment signed marketing deals with Michigan State and Lousiana State University. The law and colleges will need to adjust to the new reality. The Nil market is growing. 75% of NILS collectives distribute funds to men’s football teams. Five times as much NILLS money is paid to college sports.