In recent years, college athletics has undergone some fundamental transformations. Student-athletes now have opportunities to earn compensation through two forms of payments. Those forms are Name, Image, and Likeness (NIL) and revenue sharing.
We often hear those terms when we’re discussing the new transfer class at our favorite university, but what do they really mean? The difference between the two is important, not only for athletes and universities, but also for businesses considering partnerships within college athletics.
What is NIL?
Name, Image, and Likeness (NIL) refers to an individual’s right to commercially benefit from their identity, or their “personal brand.”
In college athletics, NIL opportunities allow student-athletes to enter agreements with businesses and other third parties in exchange for compensation. For example, a local restaurant might partner with a college basketball player to promote its business on social media, or a regional company might engage several athletes as brand ambassadors.
In each scenario, the business is compensating the athlete for the commercial use of their NIL. Importantly, the business should receive identifiable promotional value, services, or other benefits in exchange for its investment.
What is Revenue Sharing?
Revenue sharing refers to direct compensation that participating universities are permitted to provide to student-athletes under the framework established following the House v. NCAA settlement. Beginning in the 2025-2026 academic year, participating Division I institutions were allowed to distribute direct payments to their student-athletes. Currently, the universities operate under a cap of $21.58 million that they can distribute across their rosters for the 2026-27 academic year.
Can Athletes Receive Both?
Yes, and many do. For example, when your favorite university gets a new transfer quarterback, and reports suggest they’re getting $4 million to play, that doesn’t mean a single business wrote that athlete a $4 million check. The number that is reported may reflect a combination of NIL earnings and revenue share payments that equal $4 million. This is likely the scenario despite the entire amount being disclosed under the umbrella of NIL.
What Does This Mean for My Business?
For businesses, NIL creates an opportunity to participate in college athletics through partnerships with individual athletes, including allowing them to reach audiences they may not otherwise connect with. These opportunities exist no matter what industry the business may be a part of or the size of the business. A successful partnership could entail a social media promotion, public appearances, advertising campaigns, or product endorsements, among other agreed-upon deliverables. NIL enables businesses with the ability to find partnerships that match their level of intended investment and what they are seeking to get in return.