The landmark 2022 NIL ("Name, Image, Likeness") rule change has fundamentally transformed the landscape of college athletics. For the first time, student-athletes are now able to profit from their NIL, opening up a world of new opportunities and challenges. One of the most significant developments in the NIL era has been the creation of NIL valuations.
An NIL valuation is an estimate of the market value of a college athlete's NIL. This valuation takes into account a variety of factors, including athletic performance, social media following and marketability (personality, appearance, or X factor).
Several companies have developed NIL valuation systems, but the On3 NIL Valuation has emerged as the industry standard. Their rankings are here.
On3 uses a proprietary algorithm to calculate an athlete's NIL valuation. This algorithm considers social media engagement on Facebook, X (Twitter), Instagram, TikTok, YouTube, brand mentions, athlete name searches, and endorsement deal values. On3 also publishes a list of the top 100 NIL-valued athletes, which is updated regularly.
In their first full year after the rule change, the NIL valuations have already had a significant impact on the college athletics landscape. They have:
1) Provided athletes with a way to measure their value allowing them to better negotiate deals with brands and businesses.
2) Helped brands and businesses identify valuable athletes who will be the most effective partners for their marketing campaigns.
3) Created a new market for college athletes which is generating billions of dollars in revenue.
NIL valuations are still in their early stages, but they are already having a major impact on the college athletics landscape, and as the market continues to grow these valuation figures will become even more important.
If you are an athlete, remember that your NIL valuation is an estimate and not a guarantee of future earnings. Additionally, the rules and regulations surrounding NIL will almost certainly change in the future, so stay up to date and ensure you know how they can benefit you now and in the long run.
