Group Licensing Need-to-Knows

Group licensing deals create opportunities for student-athletes to profit off their name, image, and likeness through the usage of their respective school’s official trademarks and logos and including the retail and merchandise provider, who will be an anchor through custom apparel and products.

While group licensing deals work to include each and every athlete that attend the respective school, the student-athletes typically have the option of whether or not to be part of the deal.

Who are the leaders of group licensing deals? Currently, the third-party organizations, Brandr and Learfield, have illustrated great advances in this realm. Brandr has facilitated group licensing deals with schools such as UNC, Ohio State, Texas, Alabama, Indiana, Michigan State, and more.

What makes an NIL deal a “group deal” instead of just a regular deal? According to Sports Business Journal, North Carolina’s group licensing requires a minimum of three athletes from one team or six athletes from multiple teams to be part of the deal. The royalties are expected to be about one quarter, with half going to the school and half to the athlete.

Why can group licensing be beneficial for student-athletes? A group licensing deal allows for revenue to be shared among all athletes in the group. According to Knight Commission on Intercollegiate Athletics, many athletes lack the popularity and renown to sign individual NIL deals, but their NIL has value as part of a group because the licensee wants to depict an entire team, league, and more. Athletic logos, trademarks, and mottos are considered among the most valuable brand assets an athletic department, and group licensing deals allow athletes to champion their institution, rather than wear generic, brand-less clothing for deals.

It is important to note that state and school regulations vary, so each school may have a different expectation. In addition, schools such as the University of Georgia announced that athletes must obtain rights to use UGA intellectual property. Here is a comprehensive list of every university and NIL policies.

Currently, there is much in question about the scope of group licensing deals. State and school regulations can make it challenging to understand the extent to which group deals can go, and it is integral to have knowledge regarding the specific regulations.

Despite the imbalance, there has been a push to level the playing field regarding group licensing deals. For example, the College Athlete Economic Freedom Act (CAEFA) has been introduced to the senate and the house to prohibit institutions from enforcing rules that prevent current student athletes from selling or licensing their NIL individually or as a group. This would allow the student-athletes to facilitate these deals without fear of violating the regulations of their respective school.

Until there is more uniform legislation, group licensing deals will be left to the discretion of state law makers or the institutions. Regardless, more and more schools are becoming receptive to group licensing deals.

To learn more about Group Licensing, check out the CleanKonnect NIL Certification Course.