How to navigate the NIL market in 2023

It has been two years since the NCAA thrust its recruiting market into a completely new era with the introduction of name, image, and likeness (NIL). Since then, NIL has dominated the recruiting space, sending college athletics into a frenzy.

Along with the introduction of the new transfer portal rules, the college basketball scene is vastly different than it was just three seasons ago. Now, universities with the wealthiest collectives can bring in the best players, leaving many typical blue bloods in the dust. The success of programs such as Alabama and Texas have benefited from large collectives brought on by generous donors and alumni.

But first, let’s back up here. What in the world is a collective? What even really is NIL?

These are all genuine questions, and it’s completely understandable to feel lost about how these deals work. Athletes find themselves in this exact same position when entering college, and that’s where these companies come in.

Companies such as Opendorse, Greenfly and INFLCR have taken on the initiative of figuring out this wide world of Name, Image and Likeness and have embarked on the journey to help athletes set up and achieve moneymaking opportunities.

In year one, the average value of NIL transactions through INFLCR was $1,815, with non-power conference schools sitting at an average of $558 per deal, according to INFLCR associate general manager Sean Kelly. In year two, those numbers increased by 20%.

“As (younger athletes) get to campus, they have more of an idea about NIL,” Kelly said.

According to INFLCR’s report on the second year of NIL, autographs were NIL transaction with the largest average value ($10,601). Social media and royalty payouts accounted for 70% of all transactions. Men’s basketball ranked second in transactions both years to football. The average value for all non-Power-5 deals across all sports was $1,440 in 2022-23.

As NIL becomes more widespread, one can anticipate these deals to continue to grow. Consider Austin Peay guard Hansel Enmanuel and Texas Southern forward Shaquir O’Neal. They are the only two mid-major players ranked in the top 20 for NIL valuation based on ON3’s formula.

That brings up the discussion of NIL collectives. In the expansive ocean of NIL, collectives make the reception of funds and distribution of them to players much easier.

“[Collectives are] often founded by prominent alumni and influential supporters, school-specific collectives pool funds from a wide swath of donors to help create NIL opportunities for student-athletes through an array of activities,” ON3’s Pete Nakos wrote.

These collectives are what Kelly and INFLCR have expressed interest in recently. During the second year of NIL, 76% of all payments in INFLCR have come from collectives.

“We’ve been on the forefront of collectives using deals to organize and exchange,” Kelly said. “The tech we have in place to support collectives will be here to stay.”

With the introduction of their new “INFLCR Collectives” initiative, the company has now streamlined the connection between collective and athlete. This comes as just another way companies have capitalized on the confusion of NIL deals by providing a new and easy means of facilitation for the distribution of funds.

At this point in college basketball, it takes a business insider to cover all the specifics of NIL deals. It’s a lengthy learning curve, but through companies like INFLCR and Opendorse, the cash flow of college basketball can be expedited.