Once a student-athlete submits their deal, the institution team must confirm the Associated status of the Sponsor and/or Facilitator involved. Once this is complete, deals are evaluated on the following:
Entity Association: The relationship between any entity involved in the deal and the student-athlete’s school.
Valid Business Purpose (VBP): Whether the entities involved are seeking the use of the student-athlete’s NIL for a valid business purpose, meaning to sell a good or service to the public for profit. For non-profit organizations, the business purpose is valid if the non-profit’s activities raise funds to support the organization’s charitable mission. A charitable mission may not include supporting the institution or its athletic programs in any form.
Range of Compensation (RoC) - RoC is anchored in valuation principles to determine if a student-athlete’s third-party NIL compensation is commensurate with compensation paid to similarly situated individuals with comparable NIL value. The RoC is a deal level calculation that is intended to capture a student-athlete’s unique NIL value based upon multiple factors, including but not limited to, the deal’s performance obligations, the student-athlete’s athletic performance and social media reach, the local market, and the market reach of their institution and program.
Once reviewed, a deal will be assigned a status. Learn more here.