![]() ![]() Thus from a licensing standpoint, the annual NIL value per student-athlete could range from $1,000 – $10,000, whereas professional athletes garner between $50,000 – $400,000 for the same group usage licenses.ĭeveloping a methodology to estimate what student-athletes can earn through free market endorsements and other usages of their NIL is not necessarily a straightforward affair. On the collegiate side, if we average the Top 10 most valuable apparel deals in college athletics, we get an AAV of about $8,000,000 per school, which when divided by an average of 750 student-athletes, gives us an approximate value of $10,000 per-student athlete. Nike’s licensing deal with the NBA is for a reported $1 billion over 8 years, for an Average Annual Value (AAV) of $125 million, which works out to approximately $275,000 per-player annually. We can also reference apparel licensing deals both within professional and collegiate sports to assess the range of compensation student-athletes might receive. Interestingly, without the licensing fee, the per-player value of the game (revenue / student-athlete pool) yields the approximately $7,200 per-student athlete – equivalent to the upper limit payment used in the settlement. Dividing $80 million among slightly more than 11,000 student-athletes in FBS football, and then multiplying by 15% would in turn give you a licensing fee of approximately $1,000 per student-athlete. ![]() EA Sports executive Joel Linzner testified that the NCAA football game generated approximately $80 million per year in revenue on the sale of approximately 2 million units. G ame publishers typically pay licensing fees to the major sports leagues ranging from 10% to 15% of a game’s revenue. The payments averaged out to $1,200 per student-athlete, with a maximum payment of $7,200, depending on the number of games in which they appeared and whether they were closely identified in those games. On the upper-end, Take-Two Interactive will pay the National Basketball Association and its players’ union as much as $1.1 billion over the next seven years to continue making NBA 2K, which works out to $400,000 per-player annually.įrom a collegiate athlete standpoint, last year Electronic Arts agreed to pay approximately $40 million to more than 29,000 current and former players. and Sony Corp, and trading-card maker Panini America Inc, which equates to approximately $48,000 per-player each year. The NFL and MLB Players Associations receive approximately $120 million in combined annual revenue from licensing deals with video game publishers Electronic A rts Inc. Recent legal settlements involving student-athletes also provide valuation guidance. The simplest starting point for analysis is group licensing, where data is readily available on deals between video game manufacturers and professional sports unions. Several existing valuation benchmarks can be used to define ranges of compensation for various usages of NIL in both college athletics and professional sports. ![]() In a continued effort to provide intercollegiate leaders with key insights, AthleticDirectorU teamed up with Navigate Research – one of the most trusted sources of media, marketing, and sponsorship valuations in the industry – to determine how much student-athletes can make off their NIL in both group licensing and free-market scenarios. As college athletics continue to grapple with the implementation of a fair and balanced set of rules for student-athletes to monetize their Name, Image and Likeness (NIL), the question of just how much money they could generate has been the subject of much speculation.
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