With NIL becoming the driving force of the new wave of college athletics, deals of all kinds are coming more and more common. Something notable in this field right now is the art of the team-wide NIL deal, where a company or organization will agree to a payout deal with the entire team. These come in a few different varieties and all have their purpose in the landscape of NIL, but the essence is the same: consistent benefits for all athletes.
Texas Tech Red Raiders Football: The Alumni Fund Model
The Red Raiders football team has an NIL deal worth $25,000 per player, paid out from an alumni funding collective known as The Matador Club. This deal will see players get what is essentially a stipend and in return participate in community service events, and as well as advertise and be ambassadors to local charities and nonprofit causes. The Matador Club deal benefits all players on the team, not just star athletes or incoming recruits, rather it incentivizes current athletes to focus on their craft and allows them financial stability over anything else. It is also not an exclusive contract, all athletes are allowed to participate in other NIL deals and are encouraged to do so. The collective also hopes to expand into basketball and baseball in the coming seasons.
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Oklahoma Sooners Football: Player-Led Collective
The Norman NIL Club, a player owned and led NIL collective, is unique to the Sooners, but the model itself has been used by many other schools to benefit their athletes–at OU, Sooner fans are able to directly support their favorite players and the rest of the team through donations. However, this is not just a pool for cash. Benefactors will have special events and online access to connect with the team and enjoy a truly deepened fan experience overall for their financial backing of the participating players. The model of the player organized collective is incredibly beneficial, as it gives players necessary experience in the business field, as well as the financial responsibility that they can learn through operating an NIL co-op.
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Utah Utes Gymnastics: Local Business Sponsorship
The Salt Lake City-based Red Rocks Pharmacy inked a deal with the Utah Utes gymnastics team, the Red Rocks, for $65,000. The Red Rocks are a top team in the collegiate gymnastics sphere, and signing a deal with a local business only makes sense for the team and the community. High-profile teams will generate more business for those who sponsor them, and Red Rocks Pharmacy will be able to provide the athletes financial benefit for in person and online exposure to their business. It's a relatively small deal compared to a lot of other team-wide deals, but the locality of the business resonates with the team, fans, and potential business partners as well. The local model of team NIL deals will likely grow in popularity as more seasons pass by.
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While these are not the only models followed for the formation of team NIL deals, these will be some of the more common types in the coming future as NIL continues to develop. The realm of college athletics will bloom into a new type of marketplace for those participating and those hoping to benefit athletes.
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* Originally published on November 22, 2022, by Jenaro DelPrete
