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How Endorsements and Collectives Impact Your NIL Valuation

On304/13/22
Article written by:On3 imageOn3

on3sports

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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. 

The following data is set to be included in the On3 NIL Valuation in the V2 release scheduled for May 2022:

+ 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
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. 

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

More details about the On3 NIL Valuation.