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- Roster value vs. NIL value
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NIL Valuations (Photo Credit: NIL Law Report)
There are numerous conversations around NIL valuations and what they mean.
On3 also has a proprietary NIL valuation calculator they use to determine what a college athlete is worth related to NIL. (Components of said calculator have not been disclosed by On3, so it’s hard to say how value is calculated exactly.)
When it comes to values, there are generally two areas: Roster value and NIL value. (As note, On3’s calculator weighs both factors.)
What’s the difference?
Roster value
This is the dollar amount assigned to an athlete, with said athlete receiving that much money from their team.
For example, if a Power 4 school paid their starting quarterback $750,000 this season, that is the athlete’s roster value.
These numbers vary amongst schools and teams, and programs determine their own roster value for their athletes as opposed to copying what other schools do. (Although I’m sure some of that takes place.)
NIL value
This is the amount that an athlete is worth to brands and companies in exchange for their NIL rights.
This is primarily determined by an athlete’s social media presence, with secondary factors such as school, sport, personality, and ability to create high-quality content regularly.
Which is better?
Both values play their part.
Roster value money is generally significantly larger than NIL value money.
For example, a women’s basketball player may earn $100,000 from her team this season via her roster value, but her social media presence is lacking and may only earn a few hundred dollars via her NIL value.
However, NIL value money has a much longer lifetime earning shelf than roster value, since an athlete can (and should) be building their brand well beyond their playing days. (As I’ve mentioned numerous time: NIL is 40 years, not 4 years.)
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