By the time you read this article, we will have crowned our 2025 College Football Playoff champion. If you watched even a slice of college games, then you heard multiple stories about “NIL” and the “collectives”. What exactly does any of that mean, and how can mediation help?
The introduction of Name, Image, and Likeness (NIL) publicity rights has fundamentally transformed amateur and ultimately, professional athletics, a change promulgated by the NCAA v. Alston case. This United States Supreme Court decision allowed student-athletes to profit from personal brands, creating opportunities that were previously unavailable. The landmark decision, in conjunction with state-level changes and the rise of NIL collectives (organizations created by alumni, boosters, and businesses to compensate players for their NIL), created a new marketplace where student-athletes and sponsors can now legally engage in endorsement deals. While this new terrain presents significant opportunities, these changes also introduce complex challenges for schools, student-athletes, and other stakeholders. Here’s a closer look at this developing area of law, and how mediation can offer a private, collaborative, non-adversarial and cost-efficient solution to help manage these challenges, ensuring that NIL deals level the “playing field” to benefit all parties.
Unlocking NIL Opportunities for Schools
NIL deals aren’t just about individual athletes; these transactions have a profound impact on schools, alumni, donors, and the larger sports ecosystem. By fostering a competitive NIL environment, schools can position themselves as leaders in attracting and retaining top talent. The emergence of NIL collectives has accelerated this process, offering student-athletes profitable opportunities and increasing a school’s visibility in the marketplace. For prospective student-athletes, a program that fosters personal branding and entrepreneurial growth can be the ultimate deciding factor for recruitment.
The NIL market is estimated to be worth billions as the March Madness Tournament generates roughly $1.1 billion annually. Schools that embrace this transformation can benefit from enhanced exposure, drawing attention not only to athletes but to the institutions they represent. As the financial potential of NIL continues to grow, schools are finding innovative ways to capitalize on this emerging market. An example is the University of Tennessee’s new plan to introduce a ticket surcharge linked to NIL achievements in the 2025 season. This initiative underscores how NIL deals can directly boost school revenue. This implementation illustrates how the visibility and revenue generated from NIL deals enable schools to adopt such measures, driving higher game attendance, attracting more sponsorships, and strengthening ties with alumni and donors. Ultimately, increased engagement enhances the institution’s reputation, cultivating alumni pride and loyalty, which translates into greater financial support for both academic and athletic programs.
The Challenges of NIL for Schools
NIL deals are not without their challenges. Equity among athletes is a significant issue. While star players in high-profile sports may secure multiple lucrative endorsements, other team members may not experience similar opportunities, leading to potential tensions within the team Further complicating matters, compliance with varying state laws and NCAA regulations presents another hurdle for schools. These regulations are often in flux, making it difficult for institutions to navigate a complex and rapidly changing legal landscape. Hence, we now see the prevalence of continued, protracted and costly litigation.
Noncompliance with these regulations can lead to penalties and reputational damage, as evidenced by ongoing legal battles over NIL rights. Conflicts between personal sponsorships and institutional deals can create complications that affect both the athlete and the school. For example, when a collective or school allegedly makes an unfulfilled financial promise, it can lead to frustration and disrupt an athlete’s focus and performance on the field, as seen with the recent UNLV and FSU disputes. The increasing number of clashes surrounding NIL payments and transfer portal movements further highlights the significance of clear frameworks and conflict resolution strategies.
The Role of Mediation
Mediation offers a constructive, collaborative, confidential, and cost-efficient approach to addressing the challenges of NIL disputes. Unlike adversarial litigation processes, mediation fosters teamwork and compromise, enabling student-athletes, schools and sponsors to reach mutually beneficial agreements on an expedited basis. Mediation emphasizes structured dialogue, allowing disputes related to NIL equity, compliance or sponsorship conflicts to be resolved amicably and privately, which is crucial for maintaining privacy and minimizing reputational harm.
Another key advantage of mediation is its emphasis on transparency. Open communication about expectations and boundaries ensures all parties are aligned, reducing the risk of future misunderstandings and conflicts. By promoting consensus-building, mediation encourages athletes, schools and sponsors to collaborate on agreements that balance individual opportunities with institutional goals. This process preserves relationships and protects reputations by resolving disputes confidentially, thus eliminating the risk of public fallout that could harm both athletes’ careers and the institutions they represent. As NIL continues to shape the sports industry, incorporating the transparency and confidentiality of mediation into NIL disputes is essential.
A Path Forward
The NIL era has brought both unprecedented opportunities and significant challenges to college athletics. For schools, embracing mediation as part of their NIL strategy is not just a tool for conflict resolution — it’s a pathway to collaboration and shared success. By fostering transparency, equity, and mutual respect, mediation helps schools transform potential conflicts into opportunities for growth.
As the landscape of college athletics continues to evolve, schools that adapt their strategies to include mediation and proactive NIL management will thrive. These institutions will not only attract and maintain the best talent, but also build stronger relationships with their athletes, alumni and communities. Mediation and NIL: a winning combination for schools, donors and student-athletes alike.
