Podcast: Where should NIL rank in recruit’s decision-making process?
Opendorse CEO Blake Lawrence joins On3 Senior National Recruiting Editor Jeremy Crabtree on the Over the Middle Podcast. They discussed how Opendorse has created opportunities for college athletes to profit off their brand. They talk about how much revenue already has been generated in the Name, Image and Likeness era. Plus, they have an important discussion on where the NIL should rank in a recruit’s decision-making process.
NIL’s impact on recruiting process
College football coaches have expressed concern about the new world of the NIL, especially when it comes to players making decisions based on the promise of NIL deals with certain schools. Lawrence called the current market a “free-for-all.”
He encouraged players to be smart about using the NIL as a central factor in their decision-making process.
“I would tell any student-athlete in the recruiting process is that you commit to a school,” Lawrence said. “You do not commit to a coach. It is unlikely that your position coach, D-coordinator or head coach will be the same person by the time you graduate. The stats don’t add up. So, commit to a school, to a program that supports you for life.
“The NIL should weigh in certain circumstances, more than others, but right now it’s all speculation. In a decade, heck, even five years from now, it will be known. NIL compensation for student-athletes at a school will be as well-known as their attendance record rate. You cannot fudge the numbers.
“Ultimately, one school will be able to show that their student-athletes have earned more. That should have an impact or a weight. But, again, it still comes down to that athlete’s marketability and if they’re going to lean into it. So, it is part of the factor now. But it will become more real as we get deeper into the market.”
$1.5 billion in potential earnings
Lawrence – a former four-star recruit out of the Kansas City metro area who played three seasons at Nebraska – is not surprised with how much advertisers already are spending on college athletes.
Nearly 90% of all NIL deals centered on social media promotion and 60% of the deals have been with college football players, Lawrence said. The deals ranged from social media posts promoting a product to Clemson starting quarterback D.J. Uiagalelei appearing in a Dr. Pepper video advertisement.
Male Division I players have been earning $530 on average and the average female athlete has earned $295, Opendorse data for the first two months shows. But some of these NCAA athletes earned more money just in the month of July than their yearly tuition.
Opendorse is projecting that the new policy could lead to more than $1.5 billion in earnings for NCAA athletes in 2021 alone.
“The brands and fans are eager to support athletes,” Lawrence said. “The national headlines are going to point toward the million-dollar payday for the big-name quarterback. But for every student-athlete that can put an extra hundred bucks or so in their pocket every month, it is transformational.
“It really is for the student-athlete experience. Some will make millions, but most will make hundreds or maybe thousands of dollars, and that’s a big thing for student-athletes across the country.”
What is Opendorse?
More than 55,000 athletes, 3,000 sports marketers, 2,000 sports organizations and 1,000 sports agents connect through Opendorse. The company helps student-athletes market their brand, secure endorsement deals and generate revenue through social media, licensing and other forms of marketing.
“Opendorse is the most innovative and compliant way these athletes can monetize their Name, Image and Likeness,” Lawrence said. “There’s more than 55,000 athletes around the world now use our products. They download the app and sign up. They create a profile and list out their interests, their location, their connections or sports. It allows any brand or fan who goes to Opendorse.com to find an athlete. They can understand what their interests are. Pitch them an offer and write a deal to make an appearance, or to post on social media.
“The entire thing is built to make it easy for athletes to capitalize on this value they’ve worked hard to create. You’ll find is this is just as easy as booking a trip on Expedia or booking a place to stay on Airbnb.”