TCU athletic director Jeremiah Donati is excited that student-athletes now have the ability to earn endorsement money and profit off their name, image and likeness. The NCAA made sweeping changes to its model starting Thursday and athletes have been taking advantage in the days since.
Whether it’s selling branded T-shirts or pitching different companies, college athletes have new avenues to generate revenue. All of it, though, does cause some concern for Donati and other college administrators on how the landscape evolves.
“We knew this day was coming,” Donati said. “We knew the execution of it was not going to be perfect. There’s so many legislative hurdles and it hasn’t been perfect. It won’t be perfect, but it’s our new reality.
“I’m excited for the student-athletes to have this opportunity. On the other hand, we want to make sure it’s not a total distraction from their responsibilities as students and athletes. We’re going to have to see how this plays out. Overall it’s an exciting thing for the student-athletes.”
It’s not just the star players in football and basketball with earnings potential, either. TCU’s first player to announce an NIL-related agreement was walk-on football player Colton Dobson, who endorsed Gopuff, a consumer goods and food delivery service.
Women athletes have a chance to earn substantial revenue too. Former goalkeeper Emily Alvarado likely would have been the most profitable student-athlete at TCU last year if NIL legislation had been in place given her social media following and being a member of the Mexico women’s national team.
As the players will benefit from these changes, schools could lose out on potential sponsors. A restaurant or car dealership may see more return on its investment by having a player do an appearance rather than an in-game promotion with the school.
“It is a more direct way to advertise,” Donati said. “Forever, advertisers have been held at bay from student-athletes so this is totally unique that they can have a much more personal relationship with them.
“For some companies, I think that will be more attractive than your traditional sponsorship through the university.”
Asked if he knew of any sponsors prepared to use more of their advertising budget on players rather than the school itself, Donati said: “I don’t know of any specifics, but it is a concern. I know there are some donors and companies that are very interested in this space. In some ways, that may impact their commitment to the university overall.”
SHOE DEALS?
Another potential issue schools could face is if athletes are able to sign their own shoe deals similar to professional athletes. As of now, Texas’ state law allows institutions to prohibit student athletes from NIL apparel endorsements that are in conflict with institutional sponsorships.
TCU, for instance, has a long-standing history with Nike. Nike provides products for the entire athletic department with part of the contract stating that players will be wearing Nike during competition while representing the institution. That will likely go away if the star basketball player or football player can begin wearing Adidas shoes.
From student-athletes’ perspective, there are thousands, possibly millions, of dollars at stake.
“There isn’t any way to know at this point,” Donati said of athletes eventually being able to sign shoe deals. “We’ll see how that evolves. There’s going to be multiple steps in this evolution. The NCAA needs a clear-cut rule. Right now, they’ve got an interim rule.
“I still think there’s going to be federal solutions. Some states haven’t even enacted NIL laws. We’re in the top of the first inning. There’s no way to know on the shoe thing.”
With that being said, TCU has been at the forefront of these changes. The school signed a deal with Opendorse in September 2020, which is a company that educates student-athletes on how to maximize their earnings potential through NIL advertisements.
For instance, Opendorse reviews a player’s social media account and sees where they may be able to improve, whether it’s including their full name or being more interactive with fans.
Opendorse is not able to negotiate deals for student-athletes given its affiliation with the school.
“Opendorse’s primary responsibility is education and helping guide student-athletes through the process,” Donati said. “They’ll help them build their brand and understand how these things work. Setting up deals for them is forbidden.
“But they’ve done a really good job. There’s so many nuances to this.”
FORT WORTH DISADVANTAGE?
Some believe the new NIL rules could benefit schools in traditional college towns. Nebraska, for instance, is the biggest show in Lincoln. Or Boise State in Boise. Or Texas in Austin.
A fast food restaurant with its locations primarily in Nebraska called Runza was among the first to offer endorsements to college athletes in the state who promoted the restaurant’s promotional app.
Players may find more businesses such as Runza in those college-only cities more willing to pay for promotions and endorsements. After all, DFW businesses could opt for a player from the Dallas Cowboys or Texas Rangers to promote its business rather than a college athlete.
On the flip side, as Donati put it, Fort Worth is the 12th largest city in the country. Dallas is the ninth largest city. There’s more businesses and options in this area than most college towns.
“It cuts both ways,” Donati said. “You could see the argument in having a close-knit community that knows the team better and knows the players. On the other hand, in Fort Worth and Dallas, you’ve got many more potential sponsorships and advertisers in our place compared to any other place in the Big 12.
“That could be a great advantage for us. In the end, it probably evens itself out but I don’t see it as a disadvantage at all.”
