Mid-Major NIL Efforts
Today's Friday Feature focuses on NIL efforts among non-P5 conferences, focusing on growth and retention efforts.
Tulane’s Success Drives Donations
Tulane’s FearTheWave collective launched in January of 2022, following a season where the football team stumbled to a 2-10 record. When the collective launched, they announced a goal of raising $100,000. All funding, except for minor administrative costs, would be directed to student-athletes to promote charitable ventures.
“Providing a means for supporters to help Tulane’s outstanding student-athletes promote and highlight their favorite charitable causes was a driving force behind the creation of this club,” said co-founder, Jimmy Ordeneaux. “We want everyone to win here - the student-athletes, the donors, as well as the charities and businesses they support.”
One year later, Tulane ended a 12-2 season with an upset victory over USC in the Cotton Bowl. FearTheWave announced that prior to the football season, the collective had reached their $100,000 goal, but had not far surpassed it. By the time the confetti had been cleared following their bowl game victory, the collective had surpassed over $400,000 in donations, receiving 70 individual donations in November and December alone.
With the influx of new donations, primarily resulting from on-the-field success, FearTheWave plans on ensuring that current players are well taken care of (and not enticed by large offers from Power 5 collectives): “We want to put all of our resources toward guys that are proven commodities and use it as a reward for guys who are doing the right thing the right way.”
Trent Dilfer’s Take: Competing Against P5
Super Bowl-winning Quarterback, and first-year UAB Head Coach Trent Dilfer believes that NIL at the non-Power 5 level is more about student-athlete retention than recruitment. While countless stories have already been written about how NIL payments through collectives are used to recruit sought-after high school players at the Power 5 level, one may argue that recruiting through the transfer portal has become even more important in the current college sports landscape.
“[O]n this one, I don’t know if we know in our hearts because when it comes down to retention – cause that’s really what you want to use [NIL compensation] for is retention,” said Dilfer. “I’m not competing against Tulane and UTSA for retention. I’m competing against Georgia, Alabama, Ole Miss, Arkansas, Tennessee, North Carolina, Clemson, South Carolina, right?”
While Dilfer understands that UAB will generally be unable to match the promises of larger collectives at larger schools, he hopes that the promise of more playing time—and further development—will encourage more players to stay.
Market Size of Group of 5
There is no mistaking it—Power 5 Conferences have and will continue to dominate the NIL Landscape. 82% of NIL money in Football is projected to be earned by student-athletes at the Power 5 level. Across Men’s and Women’s Basketball, the number is only 69%. In total, approximately 78% of the NIL spend in year three is projected to be spent on student-athletes at the Power 5 level. Over 200 collectives are currently operating, with only 54 of those focused on universities at the Group of 5 level.
What’s Next?
Many student-athletes at non-Power 5 programs have stated that they have received a majority of compensation through non-monetary means. Brands are less likely to partner with non-Power 5 student-athletes. These student-athletes, on average, have smaller audiences and less exposure than those at Power 5 programs. As a result, compensation for these student-athletes will most often come from collectives. On field success, such as at Tulane, can drive donations to collectives. Alternatively, strong hires, such as Trent Dilfer, can encourage donors to bring a collective up to speed. While player retention can be more difficult for non-Power 5 programs in the transfer portal and NIL era, there are options available at each level of competition.
Have you checked out OSC’s website?
Head to www.OptimumSportsConsulting.com to find important resources and features relating to all things NIL. These resources include State by State Resources for Admins, Agents and Athletes, including our initial “OSC Summaries” for over a dozen states coming soon.
More to come too, including links to helpful state information- agency laws and information about school policies, as well as seminar/congressional notes, worksheets, and much more!