The University of Connecticut board of trustees approved a proposal giving the university’s athletic director the authority to enter into contracts with student athletes on Wednesday, March 26. The new deal sets the stage for UConn to start compensating student athletes for the commercial use of their name, image or likeness — more commonly known as NIL.
It’s what makes possible Liam McNeeley’s appearance in a commercial for JBL headphones and the women’s basketball team sporting Madison Reed-colored hair — and getting paid for it.
Until this year, in Connecticut, the institution could not be a party to the actual earning relationship, giving rise to independent “NIL collective” organizations which act as fundraising and entrepreneurial support boosters. In a bill this February, the Connecticut General Assembly added language which allows the school to directly pay student athletes for endorsement contracts and “revenue-sharing agreements” but prevents them from using state-appropriated funds.
“An institution of higher education, or an entity acting on behalf of such institution, may create, facilitate, negotiate, support, assist with or otherwise enable opportunities for a student athlete or a prospective student athlete to earn compensation for use of [their NIL],” the law says.
Student athletes are also required to notify the institution of their NIL activity when it occurs, but the law provides some privacies.
While technically possible since the enactment of the law, UConn could not enter into such an agreement with student athletes without the signature of University President Radenka Maric. The proposal submitted to the board of trustees is attributed to her, requesting that the “delegation of signature authority” be extended to UConn athletic director David Benedict.
“Beginning in the Spring of 2025, the university’s division of athletics anticipates executing a high volume of endorsement contracts and revenue-sharing agreements with student athletes,” Maric’s proposal states. “Prompt negotiation and execution of these agreements are critical, as student athletes often receive competing offers from multiple universities.”
NIL is at the center of a crossroads in how colleges recruit and retain student athletes. UConn women’s basketball star Paige Bueckers’ NIL is valued at $1.5 million, according to NIL ranking company On-3 says Sports Illustrated. She’s been the spokesperson for a variety of clients like Dunkin’ Donuts, CeraVe Lotions, Nike and Gatorade among others.
Initially critical over NIL’s similarities to the still-prohibited “pay for play,” UConn women’s basketball head coach Geno Auriemma recently praised Bueckers as a model for NIL.
“I think Paige is the poster child for how it’s supposed to be,” Auriemma said in a postgame press conference following the Huskies’ second round win in March Madness against South Dakota State on Monday.
Changes to state laws and school policies help mitigate the concern that NIL could potentially be used as a “pay for play” mechanism in comparison to professional sports, where players earn a salary. NCAA rules and the law that allows NIL in Connecticut specifically prohibit likening payment to athletic or academic performance.
The NCAA, which governs college athletics nationwide, started allowing student athletes to get paid from endorsements in 2021 after years of prohibiting the practice when numerous states passed their own student athlete compensation laws, including Connecticut. The law here allows student athletes to be a part of these business relationships in concert with the institution’s own policies, which provide they don’t infringe on the institution trademarks and for certain disallowed endorsements, like for drugs or alcohol. Importantly, the law stated that schools like UConn and leagues like the Big East and NCAA could not restrict or revoke a student’s athletic eligibility or scholarships because they’re earning money from endorsement contracts.
The shift didn’t come without hurdles. In federal court, the NCAA reached a settlement in the order of $2.8 billion with former student athletes who demanded back compensation on antitrust grounds. The payments will be made over the course of 10 years, funded by payments usually made by the NCAA to member institutions. UConn said that the reduction will cost approximately $500,000 over the course of those 10 years.
“All of us want to provide our current student athletes with a magnificent college experience, filled with robust avenues of opportunity,” athletic director David Benedict said in 2023 following one of many expansions of UConn’s NIL commitments. “NIL has become an important part of the total experience, and we are building a strong track record of providing our Huskies with various ways to enhance their brand.”
Benedict will also be responsible for developing an annual budget for the new endorsement and revenue-sharing deals with student athletes and will report that data alongside a report discussing NIL usage across UConn to the board of trustees.
UConn’s policies and information on NIL can be found at s.uconn.edu/nil.