On3 NIL Valuation
The On3 NIL Valuation is the industry’s leading index that sets the standard market NIL value for high school and college-level athletes.
A proprietary algorithm, the On3 NIL Valuation does not act as a tracker of the value of NIL deals an athlete has completed to date. It rather signifies an athlete’s value at a specific moment in time.
The On3 NIL Valuation is comprised of many dynamic data points that focus on three primary categories:
+ Social media following and engagement
+ Athlete data, achievements, performance, and media sentiment
+ Endorsement deals, opportunities, and Collectives
For student-athletes, social media is essential. Understanding the importance of and how to manage social media will drive everything from branding to maximizing NIL deals and preparing athletes for future careers. Social media allows athletes to control the distribution of their content, magnifies NIL opportunities, and is a core foundation of the On3 NIL Valuation.
+ Social Media Following
A base valuation is generated from the number of followers on each social media platform an athlete has (Instagram, Twitter, and TikTok). Each platform is weighted differently based on the number of marketing dollars that brands and advertisers typically spend.
Athletes are assessed on how much engagement their posts and stories generate. Athletes that consistently show high engagement rates will receive a boost, while those with low engagement rates receive a minor penalty.
+ Relative Social Media Strength
Athletes are not penalized for not having strong followings across all three social media platforms. However, a boost is applied for athletes with strong followings and engagement across all three platforms relative to their peer group.
Athletic performance drives influence, media sentiment, and marketability. Brands want to be associated with over-achievers. Excelling on the field/court will always be the most important factor. The On3 NIL Valuation takes into account critical performance and media sentiment markers.
+ Gameday Performance
Athletes who excel on game day will receive minor bonuses.
The gameday boosters can be for the following:
– National Players of the Week
– Conference Players of the Week
– Team Win (opposition strength is factored in)
– Outstanding performances on game day, especially in key games with large viewership
+ Individual Player Rankings
Utilizing On3’s rankings, an athlete’s recruiting, or On300 ranking will give them a boost according to their ranking. Once an athlete is in college, the On300 player impact ranking is used instead of their recruiting ranking.
The QB position is the highest-rated position, followed by skill positions – RB, WR, TE, CB, S, Edge. There are no boosts or penalties for the other positions in football. In basketball, there are no boosts for the position.
+ Prestigious Achievements
Athletes nominated (or those in the running at earlier stages in the season) for awards such as the Heisman Trophy will receive a boost. As the odds change throughout the season for the leading contenders, so will the boost. The maximum points awarded for this boost are applied once the winner and finalists have been announced with the winner receiving the highest boost and the other finalist sharing the remaining points based on their final position.
Athletes who come from prestigious/ famous families will receive a boost. These boosts are usually applied to athletes who come from a family with national fame. Examples of a legacy boost are Bronny James (son of Lebron James) and Arch Manning.
Athletes who appear in major publications or are highlighted in productions and special features on major networks will receive boosts or penalties based on the positivity or negativity of each article. This is not solely based on the number of articles or productions but rather the sentiment of the articles.
ENDORSEMENTS & COLLECTIVES
Endorsement and Collectives data is set to be included in the On3 NIL Valuation in the V2 release scheduled for May 2022:
Donor-led collectives are sweeping the nation, dramatically reshaping the NIL landscape. Collectives, which are independent of a university, pool funds from boosters and businesses and help facilitate deals for athletes. Collectives are the new driving force for endorsement opportunities and are on a trajectory to influence the athlete’s On3 NIL Valuation at levels equal to social media reach and engagement.
+ Existing NIL Deals
As part of the valuation, deal flow is considered, and athletes that are signing a large number of valuable contracts will indeed be boosted to reflect their success in the market. This is a relatively minor boost, and the increase in the value of the athlete is not equal to the value of the deals they have signed. This is solely a marker to reflect an athlete’s ability to get deals signed and executed.
+ College Prestige
Each college is ranked from top to bottom, with athletes attending the top-ranked colleges receiving the highest boosts. High school athletes receive a partial boost once they commit, and/or sign to a college and receive 100% of the boost value once they are enrolled.
The colleges are ranked on the following:
– Team Ranking per sport
– College TV Ratings
– College Revenues from sports
Collectives are becoming the source of funds for athletes outside of national sponsorships. Collectives vary in size from school to school and are not created equal. Therefore, athletes’ NIL opportunities will largely depend on which schools they sign, enroll in, and transfer to. On3 NIL Valuation tracks the resources and distributions from most Power 5 collectives, creating a more accurate snapshot of an athlete’s actual NIL value.
Per Post Value
On3’s NIL platform guides what athletes should charge per post. Per Post Value is determined by several key factors and is heavily influenced by the athlete’s overall NIL Valuation. Per Post Value was developed to apply a baseline for a single social marketing post for each respective social media platform.
On3 NIL 100
From the creators of the On3 Consensus, 247 Composite, The Recruiting Prediction Machine, and the Crystal Ball, the On3 NIL 100 is the first of its kind and the defacto NIL ranking of the top 100 high school and college athletes ranked by market valuation.