The NCAA’s $2.8 billion settlement to allow schools to directly compensate athletes will bring significant changes to name, image and likeness (NIL) deals. To address the lack of structure in this market, stricter oversight has been introduced, including an independent clearinghouse to vet larger deals for fairness and legitimacy.
Businesses that have invested in NIL partnerships, like Mercedes-Benz of Baton Rouge, welcome the new regulations. The dealership has partnered with star LSU athletes in recent years and believes the changes will bring stability to a previously chaotic marketplace.
“We’re welcoming these changes with open arms,” said Nick Pentas, general manager and co-owner of Mercedes-Benz of Baton Rouge. “The independent clearinghouse will help ensure that NIL deals are fair and serve a valid business purpose.”
Pentas notes that the new regulations will enable businesses to make more informed decisions when partnering with athletes. The dealership will now be more selective in its partnerships, focusing on athletes whose personal brands align with their own.
“Before, it was just rolling the dice,” Pentas said. “We’d get approached by random athletes and wonder if we should partner with them. Now, we’re honing in on athletes whose brands align with ours.”
Source: https://www.businessreport.com/article/how-local-executives-feel-about-the-new-nil-rules