From the beginning, the term “collective” was applied to NIL rights activities as how to manage and develop NIL rights agreements for athletes. But a collective approach is just one way to help athletes monetize their NIL rights.

A directive NIL approach has been part of the process from the beginning. Even with rules preventing schools from directly soliciting NIL deals for their athletes, programs were always there providing guidance. As the marketplace evolved and restrictions lessened, a directive approach has become a key driver in NIL decisions. Let’s look at both approaches and how they work.

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Collective NIL Approach

• Definition: Collectives are independent organizations (usually formed by boosters, alumni, or supporters) that pool resources to support athletes financially through NIL deals.

• Structure: These entities operate outside of the university but work to secure funding for athletes via sponsorships, endorsements, appearances, and other opportunities.

• Key Features:

  • Funded by donors, businesses, or fan subscriptions.

  • May distribute funds evenly among athletes or prioritize star players.

  • Operates independently but often coordinates with universities to ensure compliance.

• Example: A booster-led collective might secure local business partnerships and pay football players for social media promotions.

Directive NIL Approach

• Definition: A directive approach involves schools or their athletic departments playing a more direct role in facilitating NIL deals for athletes.

• Structure: Instead of relying on outside collectives, schools create NIL opportunities by partnering with businesses or leveraging in-house resources.

• Key Features:

  • Universities guide athletes in securing and managing NIL deals.

  • Schools may establish in-house NIL departments or partner with agencies.

  • Ensures compliance and alignment with institutional goals.

• Example: A university might have an NIL division that helps athletes secure local sponsorships or create brand-building workshops.

Key Differences

Which Approach is Better?

• Collective NIL provides more flexibility and financial backing but can lead to inconsistencies in deal distribution.

• Directive NIL ensures more structure, compliance, and long-term sustainability but may limit financial opportunities compared to well-funded collectives.

Many schools now blend both approaches—leveraging collectives for funding while also building in-house NIL resources for athlete development. Smaller schools can take a directive approach to NIL, offering guidance and resources to students interested in pursuing NIL. This makes financial sense for both parties, as many schools do not have the resources to hire a robust team to promote NIL, or the donor base to fund a collective.

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House vs. NCAA Objection Period Ends

• At least 18 objections were filed with the court, most addressed issues surrounding roster limits and Title IX.

• One of the last acts of the Biden administration DOJ was to file an 11-page “statement of interest” ripping the revenue sharing plan for allowing a cap on NIL compensation. It is not a formal objection and the DOJ is not a plaintiff in the case. It is difficult to determine the impact of the filing as the new Trump DOJ takes over. The DOJ is free to sue the NCAA in the future.

• Livvy Dunne is the most high profile athlete filing an objection. Her concerns focus on the lack of transparency on how compensation for athletes will be calculated under the profit-sharing plan, as well as concerns for athletes privacy.

• With the objection period closed, the parties involved have until March 3rd to file motions to respond to the objections and request final approval. The judge has schedule a final approval hearing for April 7th, at which the court will consider the filed objections and responses before deciding to issue a final approval.

• If a final approval is issued on April 7th, the settlement will go into effect for the 2025-26 academic year.

Negotiation Basics: What You Need to Know to Make a Deal

Everyone negotiates every day. Maybe with yourself, with your friends and family, or your coaches and professors. We all have basic negotiation skills we use to try to get more value.

In the world of NIL, how you negotiate with potential partners will decide how much money you will make, and exactly what the value of your time truly is. As an athlete, your time is a precious commodity. So, before signing an NIL deal, you have to make sure that the value you receive is worth the time and effort you have to put in.

Negotiating an NIL deal is different from the negotiation you do with others. Here are five key steps to follow to make sure you are ready to make a deal with potential partners:

1. Preparation is Key

Before entering a negotiation, know your value and what you bring to the table. This includes your personal brand, audience reach, skills, and potential impact​. Research the company you’re negotiating with, understand their needs, and define your goals.

2. Know Your Goals & Limits

Set clear objectives for what you want, whether it’s financial compensation, free products, or long-term brand partnerships. Also, establish your BATNA (Best Alternative to a Negotiated Agreement)—the minimum acceptable outcome before walking away​.

3. Build a Relationship

Negotiation is not just about getting what you want; it's about creating a win-win situation where both sides benefit. Show how your NIL deal will add value to the business. Be professional, friendly, and solution-oriented.

4. Active Listening & Asking Questions

Instead of dominating the conversation, ask strategic questions to understand the company’s needs. Listen actively and identify common ground​.

5. Be Willing to Walk Away

If an offer doesn’t align with your worth or values, don’t feel pressured to accept it. Walking away can sometimes lead to better deals elsewhere​.

Never make a deal under pressure. Take the time you need to get comfortable with the decision. This includes talking to people you trust, and depending on the situation, and it is always best to have an attorney review a contract before you sign it.

There are still rules that limit the role of your program and staff, but every athlete should disclose any NIL deal prior to signing it. There may be conflicts with current sponsors as well as intellectual policy limitations that could prevent you from fulfilling your obligation. Remember, once you sign, you are legally responsible for meeting the terms of the deal, so always make sure you take your time, do your due diligence, and remember that you define the value of your time!