An Equity Analysis on the Collegiate Name, Image, and Likeness (NIL) Market

Abstract

Gender and racial disparity in sport has long been a topic of discussion, and one worth revisiting with the reversal of the NCAA’s Name, Image, and Likeness (NIL) mid-2021. There is a need for analysis on how race and gender impact a student athlete’s opportunity in this new market, and this thesis is a novel attempt to do just that.

Student-athlete education is critical to ensuring equitable opportunities and outcomes for student-athletes. I find that women’s sport competitors expect, and will opt out of a deal, at half the compensation rate that men’s sport competitors will. I also find a similar trend between white and BIPOC athletes: white athletes will expect 60% lower and opt-out at 54% lower compensation rates given identical, hypothetical deal terms. These findings remain consistent even when controlling for sport, number of social media followers (total following), division, degree type, academic standing, and previous NIL involvement. When looking at sub-samples, I find the total following that an athlete in women’s sports has been significantly influential in their compensation estimations, while it is not influential for athletes in men’s sports. Athletes with higher social media followings are more likely to be involved in at least one NIL deal, and so are BIPOC athletes. Despite the NIL participation rate being higher for BIPOC athletes than white athletes, BIPOC athletes may be less likely to be involved with more than one deal as opposed to white athletes. Ultimately, this thesis provides evidence that there is disparity conditional on race and gender within the NIL market.

Keywords: equity analytics, NCAA, college sports, student athletes, gender disparity, racial disparity, sports, NIL, Name Image Likeness

JEL Classification: H24, I24, J70, M52, Z20