For several decades, college football players were unable to make money from jersey sales due to NCAA rules. Recent amendments to the NCAA’s name, image, and likeness rules have chanted that, allowing players to get a cut from their jersey sales, but that still doesn’t mean the players are making big profits.
According to a report from sports and IP lawyer Darren Heitner, some college football players may only receive $3.92 from the sale of a $140 jersey.
The #NIL group licensing biz is ripe for disruption.
Fanatics sells a replica college athlete jersey for $140. Athlete earns a 4% royalty rate ($5.60). But wait!
Then, OneTeam takes its cut of 30% for organizing the group licensing deal. The athlete is left with $3.92. Crazy.
— Darren Heitner (@DarrenHeitner) September 9, 2022
“The #NIL group licensing biz is ripe for disruption,” Heitner said in a Tweet. “Fanatics sells a replica college athlete jersey for $140. Athlete earns a 4% royalty rate ($5.60). But wait! Then, OneTeam takes its cut of 30% for organizing the group licensing deal. The athlete is left with $3.92. Crazy.”
That reported 4 percent royalty rate would already be quite low even if it weren’t for the additional 30 percent cut. By comparison, NFL players receive two-thirds of the money that is generated by selling jerseys, according to marketplace.org. So a college player’s revenue cut isn’t even in the same galaxy.
Naturally, the college football world had plenty to say about the shocking revelation.
Fanatics getting rich off the back of college athletes smh. Better option coming soon! https://t.co/Dd9SARweG7
— Anthony Raia (@anthonyraia_) September 9, 2022
— Jordan Acker (@JordanAckerMI) September 9, 2022
Yeah this reeks 🦨🦨🦨🤢 https://t.co/3QAte2h6vu
— Daniel Vlosky (@geauXedits) September 9, 2022
I'm not saying OneTeam shouldn't get a cut for organizing the deal… but 30%? Seems excessive, and I imagine it's only a matter of time before others get involved who take a lot less. https://t.co/HuUx09eOfs
— Zach Scott Gainous, Esq. (@EsqZach) September 9, 2022
Few in the NIL space are as informed as Darren. This type of deal is increasingly common and a key reason smaller agencies, like @Triumph_NIL, are valuable to student-athletes. Marketing packages shouldn’t overtly compromise the talent. https://t.co/h9CKF8B77d
— Doug Hicks (@DougHicksNIL) September 9, 2022
This is crazy!! https://t.co/HYDCPCOmAY
— Michael Seabrook Jr (@mikeseabrookjr) September 9, 2022
The NIL landscape is constantly changing. This is one area where athletes will undoubtedly hope to see changes sooner than later.