NFTs and NIL: What You Need to Know

It is no secret that NIL offers opportunities for student-athletes to take part in brand marketing with clothing, food, and lifestyle companies. However, there is also an opportunity for college athletes to profit through a different avenue: NFTs. What is an NFT? The acronym NFT stands for “non-fungible token.” Similar to cryptocurrencies like Bitcoin, NFTs are digital assets that can be purchased, sold, and traded at will. For athletes, NFTs can be sought after by fans who want an authentic and potentially rare collectable of their favorite college athlete.

 NFTs have become increasingly important in the NIL world. There have been NFT deals struck with the Kansas and Kentucky basketball programs. Kentucky Men’s Basketball head coach, John Calipari, along with 11 of the program’s top players, struck a deal with the NFT company Mercury. Mercury will create digital collectibles for fans and collectors, which can be bought and traded online through a platform called UKbluechips.io.

A larger player, The Players’ Lounge, made headlines in March of 2022 for its signing of more than 50 athletes. Including some of the top players from Alabama, Auburn, Oklahoma, LSU, Texas, and North Carolina, athletes will take part in the creation of NFTs. According to On3 NIL, $174 million has been spent on NFTs since November 2017, and the Players’ Lounge has already experienced success with this type of deal in the college football world. 

Last year, eleven members of the University of Georgia football team were part of an NFT launch with DGD Mafia. This NFT release sold out within three hours and raised more than $305,000 in sales, which awarded each student-athlete $28,000. Examples of success such as this grabbed the attention of companies like The Players’ Lounge, as various schools expressed interest in NFTs. According to Blake Lawrence, the co-founder and CEO of Opendorse, “Selling a limited number of NFTs to a specific fanbase then splitting the profits with student-athletes in that market is a new trend in the NIL collective space.” According to NIL NEWSSTAND, the Players’ Lounge NFT gives owners access to exclusive real-world experiences while providing opportunities for student-athletes to monetize their individual brands.

NFTs have dominated the NIL market in this first year with no surprise. Comprising more than 17% of the NIL market, many have found NFTs as a convenient way to gain revenue and build an athlete’s brand. When it comes to NFTs for athletes, there is a great opportunity, as it can be a “virtual trading card.” Stuart Bush, the CEO and co-founder of the NFT company Legacy League, has stated that athletes can make anywhere from $300-500 to $10,000-20,000 through NFTs. Although there has been some question of how relevant NFTs will be in the near future, many are optimistic that the crossover of NIL with NFTs and the great interest in college athletics will increase fan engagement and the market.

To learn more about NFTs and NIL, check out the CleanKonnect NIL Certification Course.