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About On3 NIL Valuation, Brand Value, Roster Value

Shannon Terry07/29/22
Article written by:On3 imageShannon Terry

ShannonTerry

On3 image

About On3 NIL Valuation

The On3 NIL Valuation is the industry’s leading index that sets high school and college athletes’ projected annual value (PAV).

A proprietary algorithm, the On3 NIL Valuation establishes the overall NIL market and projected 12-month growth rate by measuring two categories, Brand Value Index and Roster Value Index.  

The Brand Value Index measures the national licensing and sponsorship market. The Roster Value Index collects data from all school Collectives into a proprietary Roster Management software. Brand Value and Roster Value are combined to create the overall NIL market.

Using the overall NIL market size, the On3 NIL Valuation calculates an athlete’s Brand Value and Roster Value by using dynamic data points targeting three primary categories:

+ Performance
+ Influence
+ Exposure

While the algorithm includes deal data, it does not act as a tracker of the value of NIL deals athletes have completed to date, nor does it set an athlete’s NIL valuation for their entire career. The On3 NIL Valuation calculates the optimized NIL opportunity for athletes relative to the overall NIL market and projects out to as long as 12 months into the future.

The On3 NIL Valuation is publicly available. Performance, Influence, and Exposure ratings along with the athlete’s personal Brand Value Index and Roster Value Index are available only to the athlete in the “Athlete Verified” private dashboard on the On3 Athlete Network.

How is an Athlete’s On3 NIL Valuation Calculated?

on3 nil valuation

Once Brand and Roster Value combine to create the overall NIL market, athletes participate in the marketplace based on their individual brand and roster values. 

For each athlete, the On3 NIL Valuation algorithm takes into account three primary factors: performance, influence and exposure to create their individual Roster Value and Brand Value, which together combine to create the athlete’s On3 NIL Valuation.

  • Performance: Performance is determined by how the athlete performs on the field. Big games against key opponents, becoming nationally ranked and winning national awards will have the most impact on an athlete’s valuation. Participation in college sports is weighted heavier in most cases than those that participate at the high school level.
  • Influence: Influence is determined by the athlete’s own social media authority. Social media followers, reach and engagement are the primary factors that determine influence. 
  • Exposure: Exposure is determined by several factors including whether the athlete is in high school or college, which school the athlete attends and their position. Athletes that attend universities with a larger fan base and media attention are likely to see a positive impact on valuation. Athletes who play a position with higher visibility (ie. quarterback vs. center) are likely to see a higher valuation.

What is Roster Value?

Roster Value is a calculation of an athlete’s respective value to their team. It is the amount an athlete hopes to receive primarily through a school’s collective, from sources such as camps, appearances, local businesses, licensing, memorabilia, etc. The amount is based on the athlete’s (P)erformance value, their school’s NIL collective size and the overall NIL market.

What is Brand Value?

Brand Value is generated when an athlete’s (P)erformance, (I)nfluence, and (E)xposure combine to create awareness on a regional and national scale, creating advertising and sponsorship opportunities beyond Roster Value. Brand Value revenue originates from the athlete’s personal network and is not sourced from collectives/schools.

What is the Projected Overall NIL Market?

The NIL marketplace is currently estimated at $750M-$1B and is expected to grow into a $3-$5B industry in the next five years. Much of this growth is expected in group licensing and brands gaining sophistication in utilizing this athlete marketing channel. In parallel, the collective market size will grow as collectives become more integrated and coordinated with school fundraising activities.

Why Does the On3 NIL Valuation Change Week-to-Week for Some Players?

Factors including performance, influence, exposure, verified deals and changes in the overall NIL market size and individual collective size can all impact an athlete’s NIL Valuation from week to week. An athlete can see a significant change in their influence and exposure ratings through their social media accounts, which makes an immediate impact in their overall valuation.

Athletes who perform at a high level in their given sport, specifically if in a nationally televised game or honored for their performance, can see an uptick. Through verified deal flow, an athlete can provide evidence of their compensation.

How Do I Increase My On3 NIL Valuation?

Performance in an athlete’s arena will always lead to the biggest increase in an On3 NIL Valuation. Showing out at a high level in key games on the national stage will lead to a significant increase. Another example is the impact of being nationally ranked at a position. Rankings are based on continuity and consistency of performance

Athletes who constantly market themself and position themselves by doing the work and getting deals will see a jump in their valuation. Not everyone needs to be the top athlete in their sport to generate NIL income. By building strong NIL portfolios and verifying deals in the On3 Athlete Network, student-athletes can increase their On3 NIL Valuation and market rate.

How Accurate is On3’s NIL Valuation Algorithm?

The algorithm-driven On3 NIL Valuation comes from 27 years of data and science innovation in college sports publishing. From the architects of the three major high school and college databases, the valuation was developed with the assistance of multiple machine learning engineers. From the creators of a science-backed rating system of high school athletes, the evaluation also was born following the creation of On3’s Recruiting Prediction Machine, which is an algorithm and machine learning-based product to predict where athletes will attend college. Since the RPM was released in December 2021, it has a greater than 86% success rate. 

On top of the experienced staff who created the On3 NIL Valuation, On3 has over 250 reporters and 30 years of connections with coaches, agents, media brands and administrators to get an unprecedented look behind the curtain of the current environment of college sports. Combined with a team of data scientists, engineers and developers who are experienced professionals in the space. 

And with a dedicated NIL staff, which is the largest in the nation, which keeps tabs on the pulse of NIL in college athletes. The On3 NIL Deal Tracker has already tracked nearly 4,000 individual brand deals to date.

How are Collectives Factored into the On3 NIL Valuation?

On3 has created a roster management algorithm, which takes data from collectives, tiers the athletes based on their performance and calculates their respective roster value at the school they are currently attending. A college sports media company with more than 250 reporters, including a dedicated national team following all things NIL, On3 has spent considerable time accumulating collectives’ data and monitoring trends in the space to create an understanding of the current state of a collective.

Can I Report the Total Value of my NIL Deals?

Yes.

Should I use the On3 NIL Valuation to Inform my Decision About Picking a School or Entering the Transfer Portal?

On3 aims to empower the athlete to make the best NIL decision for their future. One of the most controversial and misunderstood concepts in the NIL Era is an athlete’s value. The On3 NIL Valuation fills that need. With the On3 Athlete Network, student-athletes will be able to see their roster and brand value. That information will be used as athletes and network talk to coaches and collectives about recruiting and the Transfer Portal. 

Through the comparative tool in the On3 Athlete Network software, athletes can see the change in their evaluation and roster value based off of the school they attend.

Do Fans See my Roster Value and Brand Value?

No, fans do not have access to private On3 Athlete Network data.

MORE RESOURCES

+ NIL Deal Tracker
+ NIL Rankings
+ NIL 100
+ Collectives Database
+ NIL High School Rules
+ NIL College Rules

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 On3 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.