By: Evan Loker
The NCAA’s adoption of a Name, Image, and Likeness (NIL) policy in 2021 marked a transformative shift in collegiate sports, unlocking significant economic potential for student-athletes. This policy allows athletes to profit from their personal brand through endorsements, sponsorships, and other commercial ventures without jeopardizing their eligibility. The change has not only revolutionized the financial landscape for college athletes but also highlighted the importance of intellectual property (IP), particularly the value of trademarks and their proper valuation.
Before NIL, athletes were restricted from earning money from their athletic fame. Now, they can sign deals with local businesses, national brands, and even create and sell their own merchandise. The earning potential varies, but for high-profile athletes in sports like football and basketball, NIL opportunities can be worth millions of dollars. Social media platforms have become essential tools for athletes to capitalize on their personal brands, as their follower counts directly influence their marketability.
With this shift, the focus on personal branding and IP valuation has become critical. Athletes now need to understand not just the importance of trademarks but also how to properly value their IP assets. Trademarks, which protect names, nicknames, logos, and slogans, are vital in securing control over an athlete’s brand and ensuring they are not exploited by unauthorized third parties. By valuing these trademarks early, athletes can better negotiate deals that reflect their true market worth.
Valuing IP in the form of trademarks allows athletes to make more informed business decisions. For instance, an athlete with a highly recognizable nickname might benefit from knowing the market value of licensing that nickname to apparel or gaming companies. This IP valuation becomes the foundation for long-term business growth, as athletes can leverage their trademarks to build personal brands that last well beyond their college careers. Some athletes are also negotiating contracts that allow them to retain ownership of their IP, thus ensuring control and profitability in the long term.
This evolution has changed how athletes and their families approach the recruiting process. Universities with strong marketing, media, and legal programs are increasingly attractive, offering better resources for athletes to grow and protect their brands. Schools that assist athletes in valuing and registering trademarks create a powerful incentive, positioning themselves as key players in maximizing an athlete’s NIL value. This new dynamic means institutions are now judged not only on their athletic programs but also on their ability to help athletes navigate the complexities of branding and IP protection.
However, managing NIL deals, IP valuation, and trademark filings can be complex for young athletes, many of whom are unfamiliar with the business side of sports. Some schools and organizations are stepping in to provide education and support, but the landscape remains evolving. Moreover, there are concerns about equity, as the most lucrative NIL deals still concentrate among athletes in high-profile sports, leaving those in lesser-known sports with fewer opportunities for financial gain.
The NCAA’s NIL policy has dramatically increased the potential value of young athletes’ personal brands, underscoring the need for IP valuation and trademark protection. As athletes explore their new earning potential, understanding the worth of their intellectual property is crucial for ensuring long-term success. While this policy opens new doors, it also presents challenges that athletes must navigate carefully to maximize the value of their NIL rights.
CONSOR offers a range of highly specialized services to help clients understand the value of their intellectual property portfolio and how that value is impacted as a result of market conditions. We work closely with clients and the courts on time-sensitive projects to unlock the value contained within the intellectual property. Our work is done according to the strategy that best suits a client’s specific needs. Whether that be licensing, partial sale, reorganization, merger, joint venture, or liquidation, simply let us know your needs. Email us at info@consor.com or call us at (858) 454-9091.