Athlete Empowerment Through NIL: Three Questions for Donald Woodard

Donald Woodard (Carter + Woodard, USA)

National Collegiate Athletic Association (NCAA) v. Alston, the 2001 U.S. Supreme Court ruling that kicked the door open for college athletes to profit from their name, image, and likeness (NIL) rights for the first time, has been a game changer in the sports world. Superstar athletes like Angel Reese are now scoring partnerships with major brands like AMAZON and COACH during their collegiate careers. The 2024 Annual Meeting, taking place in Atlanta, Georgia, USA, May 18–22, will feature a panel discussion titled Athlete Empowerment Through NIL: Business Perspectives. This will be an interactive discussion on NIL-related opportunities and challenges for athletes.

Donald Woodard (Carter + Woodard, USA) will participate in the session alongside his client, athlete and recording artist Flau’jae Johnson (Louisiana State University, USA). Mr. Woodard is a founding partner of Carter + Woodard, an Atlanta-based entertainment and sports law firm serving athletes and entertainers internationally. He wants student-athletes hoping to profit from their NIL rights to know that “the most important step they can take is to engage an experienced advisor who can guide them through the process. Legal protection, financial advice, asset protection, and tax planning are critical.”

Mr. Woodard sat down with the INTA Bulletin to explain how things have changed in college sports since the Alston ruling, share his advice for brands looking to form relationships with college athletes, and explain why he’s hopeful that the wildly successful 2024 NCAA women’s college basketball season could mark a turning point in the fight to close the gender pay gap in professional sports.

In 2021, the NCAA v. Alston ruling—and a confluence of other events—paved the way for college athletes to profit from their name, image, and likeness (NIL) rights for the first time. From your perspective, has this been the gamechanger it was expected to be for college sports and athletes?
The Alston ruling lifting the prohibition on a student-athlete’s ability to profit off NIL opportunities has absolutely been a gamechanger.

The ability to profit off NIL, along with the transfer portal, has been the most revolutionary change the college sports world has experienced in decades. Star student-athletes are now commanding up to seven figures in compensation during their collegiate playing years. The trickledown effect has been felt. The G League’s (the official minor league of the National Basketball Association (NBA)) developmental team, G League Ignite, recently announced its decision to shut down in part because of the opportunity for “one-and-done” level talent to earn millions in college.

The new NIL guidelines have had the greatest impact on women’s sports, specifically women’s basketball. Historically, women’s basketball was considered a non-revenue generating sport. The timing of the Alston decision was perfect. The combination of record-breaking talent and big personalities had massive television audiences glued to their televisions to watch Flau’jae Johnson, Angel Reese, and their Louisiana State University (LSU) Tigers’ teammates take on Caitlin Clark and the Iowa Hawkeyes in an Elite 8 matchup that led to the championship game between Iowa and the South Carolina Gamecocks in April. Ms. Clark, Ms. Johnson, and Ms. Reese have reportedly earned millions in NIL revenue.

The 2024 WNBA (Women’s National Basketball Association) draft saw a more than 300 percent audience increase in viewership over 2023. More importantly, considering the starting salary of less than $80,000 for a WNBA rookie and the lack of professional options for other student-athletes participating in so-called non-revenue generating sports such as gymnasts, student-athletes can earn substantial amounts of money before graduating college.

Although the NCAA’s decision to lift the prohibition on student-athletes’ ability to profit off their NIL rights has been positive for student-athletes, the lack of federal guidelines led to a patchwork of state laws, guidelines, and policies. At some point, I expect a course correction and the implementation of standard guidelines to govern NIL laws across collegiate sports.

The industry is slowly catching up. Financial literacy programs are critical. Kids 18 years old (or younger where states allow NIL deals for high school student-athletes) require the same expert financial and tax counsel as professional athletes. Stay tuned. The NIL door has been kicked open and it will not close.

You’ve worked closely with college athletes, helping them protect and advance their NIL rights. What advice do you have for brands that wish to partner with or sponsor college athletes in this space?
Brands interested in working with student-athletes should consider the following:

1. Does the athlete fit the company’s brand messaging? College athletes are diverse individuals with their own distinct personalities.
2. Similarly, does the athlete’s audience align with the brand’s audience?
3. What deliverables are expected and when? Student-athletes have different time constraints than professionals.
4. Does the student-athlete endorse a competitor? What happens when a student-athlete has obligations to a competitor during team activities (e.g., Flau’jae is a PUMA athlete, but LSU is a NIKE school)?
5. Does the student’s school guidelines and state laws allow the term of the deal to extend beyond the student-athlete’s collegiate career? How does that affect the value of the transaction?

The huge interest in this year’s NCAA Women’s College Basketball Championship tournament led to a public uproar as more sports fans became aware of the major pay disparity between WNBA and NBA rookies. What role might the increased buzz that comes with NIL deals for female college athletes transitioning to the pros play in bolstering the profile of women’s sports and ultimately serve to lessen and even eventually end this disparity?That is the question we hope to answer with the 2024 class of women who entered the WNBA. This is the first class of bona fide stars who were able to capitalize on their star power and earn millions of dollars in NIL deals before shooting their first shot in the WNBA. Will the audience follow them to the pros?

College basketball has a built in fanbase, with teams like LSU, Iowa, and South Carolina routinely playing before sold-out crowds this past season. The pay disparity is in part due to the size of the television/live viewing audience. The NBA is a US $24 billion business. The WNBA is approximately a US $60 million business, but change is in the air.

My college-aged daughter commented that she and her friends watched the WNBA draft for the first time this year—so did I and millions of others. 2024 season tickets for a few teams sold out for the first time. I will attend my first WNBA game next month when I travel to Chicago to see my client Angel Reese and the Chicago Sky play New York Liberty. That is a good sign.

Mr. Woodward’s Annual Meeting panel session, Athlete Empowerment Through NIL: Business Perspectives, will take place on Tuesday, May 21, 2:45 pm–3:30 pm.

Learn more and register for the 2024 Annual Meeting.

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