On July 1, 2021, the NCAA officially lifted its decades-long restrictions on college athletes using their names, images and likenesses (NILs) to generate revenue for themselves. Since then, college athletes from all over the country have been able to secure NIL deals, with some of them earning up to seven figures. Despite the new rules being around for over a year and a half, there is still a lot of confusion surrounding the truths and misconceptions when it comes to NIL.

Here are some myths and facts about NIL for college athletes to keep in mind:

Myth #1: You can't get an NIL deal if you are not a nationally recognized college athlete.

While NIL deals involving athletes who are household names are some of the most talked about, all college athletes can get NIL deals. For example, Jack Betts is a football player for Amherst College at the NCAA Division III level. As of September, he had secured over 35 NIL endorsement deals, including some with nationally known companies like AllBirds and Omaha Steaks, showcasing the potential for NIL outside of Division I. 

Related: Rate Amherst College

Myth #2: Professional athletes are much more influential than college athletes. 

Even though some professional athletes have millions of followers on social media, college athletes can offer a more relatable viewpoint when marketing brands or products they have struck NIL deals with. College athletes may be able to reach more of a specific audience for brands than a professional athlete would, making them more influential in certain ways.

Myth #3: College athletes cannot wear their school logos when partaking in an NIL deal.

Some schools allow their student-athletes to wear the school logo or team issued gear when partaking in certain NIL deals. In most cases, the intent to wear a school logo must be mentioned when the NIL deal is reported, as the permissibility of doing so varies between each school and each state. For example, at LSU, student athletes are allowed to use the marks or logos of the school in an NIL deal, but only if the school provides written permission prior to any contracts being signed.

Myth #4: NIL deals must be paid out monetarily.

Despite the most popular NIL deals including compensation through specific dollar amounts, NIL deals can be paid out in a variety of ways. Athletes have received gift cards, food, free products, and more in exchange for the use of their NIL. Hunter Dickinson, a basketball player at the University of Michigan, has an NIL deal with a popular Ann Arbor restaurant named The Jagged Fork. While he does receive a small amount of money for the deal, his motivation to sign the deal came from the promise of free meals. 

Related: Rate the University of Michigan

Myth #5: NIL won't impact the transfer portal.

With the transfer portal making it easier than ever for college athletes to switch schools, the potential for additional NIL money is definitely impacting athletes' decision making. Prior to the 2022 football season, University of Pittsburgh wide receiver Jordan Addison transferred to USC and quickly signed an NIL deal with United Airlines. LAX is one of United's hub airports, showcasing how the potential of new NIL deals can impact if and where an athlete chooses to transfer. 

Related: Rate the University of Southern California

Myth #6: Schools will broker NIL deals for their athletes.

Much like how schools are prohibited from paying their players, NCAA rules do not allow schools to help athletes obtain NIL deals (for now). This stems from the fact that schools finding their athletes NIL deals to make money is essentially the same as schools paying the athletes directly. 

Myth #7: Only large, nationwide companies will sign college athletes to NIL deals. 

Previously, brands would need to sponsor entire teams, which led to high sponsorship costs and competitions to be affiliated with the most well known squads. With the new NIL rules, companies can sign deals with any of the myriad of NCAA athletes, making deals a lot more affordable for smaller brands who may not be very well known. Local brands may also turn to college athletes in their region, even if those athletes aren't nationally known or even at the Division I level. 

Related: Rate your Coaches, Facilities, and Campus Visits

Now that we've cleared up some myths, let's get to the facts.

Fact #1: Any athlete in any NCAA division can get an NIL deal.

When the NCAA enacted the new rule allowing players to use their NIL to earn money, it did not just apply to Division I athletes in revenue generating sports–the rule applied to athletes at the Division II and Division III levels as well, and includes all athletes, regardless of the sport they play. 

Related: No Platform, No Problem: 4 Ways to Earn NIL Money Without Social Media

Fact #2: State laws and school specific rules are what really govern NIL.

The NCAA allows schools to make their own rules about the NIL deals their athletes sign, but many states also have enacted their own NIL laws since the rule was passed by the NCAA. When in doubt, remember that the school rules must comply with their state's specific NIL laws. 

Fact #3: Not all states have laws covering NIL.

With the NCAA's new NIL rule still being relatively new, not all states have passed laws regarding NIL. As of now, 32 states have passed NIL laws. If a state does not have an NIL law, college athletes at schools in that state can still secure NIL deals, but must make sure the deals comply with any school NIL rules. 

Fact #4: NIL deals are not pay-for-play deals. 

The NCAA NIL rule does not allow schools to pay their athletes directly for their athletic achievements or for committing to play for a school. Doing so would violate the NCAA's amateurism rules. Instead, NIL deals are agreements between athletes and entities other than their schools that offer compensation for the athletes in exchange for marketing or promotional efforts utilizing the athletes' NIL. 

Fact #5: College athletes can utilize professional services to secure NIL deals.

While NCAA athletes still cannot use agents or services to market themselves to professional teams, they can use these agents or services to secure NIL deals. These services, such as Opendorse, give college athletes a platform to earn money from their NIL or secure NIL deals with brands. For example, University of Miami  women's basketball players Haley and Hanna Cavinder utilized the service Icon Source to secure a deal with Boost Mobile when they were at Fresno State.

Related: Rate Fresno State University

Fact #6: NIL deals should be reported by a college athlete to their school in accordance with state/school policies. 

Because schools have their own specific NIL rules that may be shaped by state laws, it is crucial that college athletes report their NIL deals to their schools in a way that follows the rules that apply to them. Doing so allows schools to ensure that their athletes are abiding by these rules and laws and not forfeiting their amateur status. 

Fact #7: College athletes don't need to register their brand as an LLC to have NIL deals.

While some college athletes are choosing to turn their brands into legitimate entities, like LLCs, this is not a requirement to make money from NIL. There are some benefits to this, such as limiting personal liability if something like a breach of contract occurs, but college athletes can still utilize their personal brands to generate revenue from NIL without doing so.

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* Originally published on March 10, 2023, by Owen Roche