What are NILs?
NIL stands for "Name, Image, and Likeness," and NIL deals refer to the ability of college athletes to profit from their own name, image, and likeness. Historically, college athletes were not allowed to receive compensation beyond scholarships and stipends, as per the rules of the National Collegiate Athletic Association (NCAA). However, with the changing landscape and increasing scrutiny of these rules, there has been a shift.
Starting July 1, 2021, the NCAA announced changes to its rules to permit athletes to benefit from their NIL. This allows athletes to sign endorsement deals, promote products, and engage in other commercial activities without jeopardizing their college eligibility. Currently, there are regulations prohibiting the nature of commercial activities that universities can conduct on behalf of their athletes. However, it is widely assumed that the NCAA will announce a change in these policies in Q1 ‘24.
NIL deals can include endorsements, sponsorships, social media partnerships, and other opportunities for athletes to monetize their personal brand. These changes aim to give college athletes more control over their own image and the ability to capitalize on their popularity during their collegiate careers.
Venture Investment in NILs
Athletes, armed with the ability to monetize their personal brands through NIL rights, find themselves at the nexus of entrepreneurship and influence. Venture Capital firms recognize the marketability and business acumen of athletes, leading to investments in startups either founded or endorsed by these sports personalities. This collaboration not only diversifies athletes' income streams but also positions them as influential entrepreneurs, fostering a symbiotic relationship where success is shared between athletes and investors.
The infusion of VC funding plays a pivotal role in propelling technological advancements at the confluence of sports and technology. Startups focusing on fan engagement, athlete branding, and digital experiences become beneficiaries of strategic partnerships with venture capitalists. This synergy accelerates the growth of sports tech, creating an ecosystem where innovation thrives, and athletes become integral stakeholders in the technological evolution of their industries. The marriage of VC and NIL propels the development of platforms and technologies that optimize the utilization of athlete brand partnerships.
Beyond financial gains, the collaboration between VC-backed startups and athletes facilitates international expansion. Athletes, with their global fan following, become conduits for startups seeking to broaden their reach. Moreover, VC investment in data analytics platforms enhances the personalization of marketing strategies, enabling startups to tailor NIL-related campaigns to specific audiences. This data-driven approach not only maximizes the impact of athlete endorsements but also reshapes the dynamics of brand engagement, ushering in a new era where personalization and global impact converge.
NIL at UConn
UConn’s athletics department has taken a proactive approach to capturing the opportunity within NIL. With two separate collectives, the Bleeding Blue for Good Collective and the D’Amelio Huskies Collective, UConn has partnered with a diversified set of initiatives to benefit their athletes and the community. These collaborations allow the school to leverage its resources and brand to position itself effectively in the evolving space of NIL.
The Bleeding Blue for Good Collective is a nonprofit organization founded by UConn Alumni Jonathan Greenblatt and John Malfettone as well as former UConn student-athletes Kalana Greene, Rasool Ahmed, and Michael Cantor. Bleeding Blue for Good supports student-athletes by connecting them with income-earning, charitable, community-based opportunities. Events held include sports clinics and speaker appearances which allow athletes to build relationships with causes and underserved communities, grow their image and personal brand, and serve as leaders to youth from low-income families.
The D’Amelio Huskies Collective is another NIL initiative that was created by UConn Alumnus and Entrepreneur, Marc D’Amelio, to assist athletes with their development off the field, court, track, or ice. Their staff provides unparalleled advice and service to grow their personal branding and social media activity. Additionally, they help athletes connect with brand deals to maximize their growth and recognition. This invaluable resource to UConn’s student-athlete community has proved to be beneficial and will indubitably aid recruiting efforts throughout NIL’s growth and emergence.
While these collectives are independent of the University and its athletic department, UConn supports its student-athletes navigate the NIL space by providing them with resources such as Opendorse, a platform that streamlines the process for potential sponsors who wish to engage with the student- athletes. Additionally, in collaboration with the Werth Institute’s Championship Labs, student-athletes are immersed in the landscape of entrepreneurship and are supported as they navigate NIL’s implications. Championship Labs’ Advisory Board is complete with a vast array of athletes and entrepreneurs including Rudy Gay, Brian Krause, Lorin Dixon, Aaron Torres, Amy Errett, and Michael Woodward.
NIL at Hillside Ventures
This summer, Hillside added a fourth vertical with the purpose of leveraging UConn’s athletics ecosystem to invest in disruptive emerging players in the SportsTech space. With the inception of this vertical, Hillside hopes to tap into a diverse and innovative pool of entrepreneurs who are creating solutions within fan engagement, player health and wellness, performance enhancement, and Name, Image, and Likeness (NIL). By utilizing UConn’s resources and knowledge base, Hillside has what is needed to thoroughly assess companies and their use cases and provide value to portfolio companies in the space.
From its beginning, the SportsTech vertical found an opportunity within NIL and has sought to navigate and understand the space. By speaking to experts at the University, founders creating solutions for NIL, and student-athletes, Hillside has continued to learn about NIL and navigate the needs of athletes and universities. By exploring NIL, Hillside has shown their commitment and vision to the sports industry and the innovation within.
Hillside Ventures is excited to further their exposure within the SportsTech space and navigate the headwinds and tailwinds of NIL. Having UConn’s championship-level student-athletes and coaches as well as athletics staff and administration here on campus, Hillside continues to equip themselves with the knowledge and connections necessary to approach deals effectively. With NIL’s implications and evolution, the SportsTech vertical looks to further their expansion into this space and beyond.