In an era where college athletes are no longer bound by traditional amateurism, the dynamics of college sports are transforming. The explosive growth of NIL (Name, Image, and Likeness) deals is reshaping the landscape, creating new opportunities for athletes but also posing unique challenges. Exceptional Risk Advisors' latest article, "Safeguarding Athletes: Navigating Name, Image, and Likeness (NIL) in Collegiate Sports," co-authored by Tim Smith and Matthew Ferraro, delves into these evolving dynamics and explores the financial safeguards necessary to protect both athletes and brands in this new era.
With athletes able to profit from endorsements, appearances, and brand ambassadorships, NIL deals have ushered in what many call “free agency” for college players. High-profile athletes like Angel Reese (LSU Basketball), Shedeur Sanders (Colorado Football), and Livvy Dunne (LSU Gymnastics) are leveraging these opportunities, signing endorsement deals worth millions. However, as NIL deals grow, so does the need for tailored insurance solutions to protect athletes' financial interests in cases of injury, illness, or other unforeseen circumstances that could impact their earning potential.
Excerpt from the Article:
“Truth be told, college players have been receiving compensation, albeit unofficially, for a long time. Over time, athletes began to advocate for transparency and fairness, expressing their desire to legitimize the process... The reality is that if [schools] do not embrace and adapt to it, they will be completely left behind. And the same thing can be said for advisors who don’t embrace the need to protect their clients as NIL continues to be a fast-growing and highly profitable reality.”
The article also provides insights into specific types of insurance coverage designed to protect the athlete’s NIL earnings, such as Permanent Total Disability for career-ending injuries, Temporary Total Disability for per-game benefit deals, and Critical Injury Riders. For brands, coverage such as Non-Appearance Insurance and Disgrace Insurance offers crucial protection against financial losses tied to the unpredictable nature of athlete conduct.
To dive deeper into how insurance advisors can play a critical role in protecting collegiate athletes’ earnings, download the full article here.
To learn more about safeguarding athletes, watch our recent webinar, "Protecting Athletic Careers: Disability Insurance for Professional Athletes." This session explores insurance solutions tailored for professional and collegiate athletes, optimal insurance buying seasons, updates from the Lloyd's of London sports insurance marketplace, and more. It’s designed to provide you with valuable insights and practical tools to enhance your service to athlete clients and strengthen your relationships with sports agents.
