NEW ORLEANS — As of today, college athletes have to freedom to sign endorsement deals and make money based on their notoriety in sports. In the past, it was universities making all the money, but as Mike McDaniel explains, athletes are ready to cash in.
Thursday morning college athletes around the country took to social media, ready to cash in on their name, image and likeness.
It’s all part of a new policy from the National Collegiate Athletic Association, allowing college athletes to make money through things like endorsements and sponsorships, which used to be prohibited.
"It’s probably only going to benefit the best-known athletes. It’s not going to do much for the not-so-well-known players. It’s not going to do much for the non-revenue-producing sports," said Business Attorney Jay Gulotta.
Business attorney Jay Gulotta said the reversal from the NCAA was a long time coming, allowing athletes to make the most of their college careers.
"That’s what’s so interesting about this. The shelf life of a college athlete is not very long," said Gulotta.
Even in that short amount of time, a lot of money can be made, and deals are already in the works with Louisiana athletes.
Thursday, LSU gymnast Olivia Dunne, posted this on Tik Tok, where she has almost 4 million followers. Her social media profile on a digital billboard in New York City the caption read “dreams are coming true”.
LSU cornerback Derek Stingley posted on Twitter teasing a partnership with Walk-Ons Restaurant, saying “I can’t wait to show you what I have cooking... stay tuned.”
Want a shoutout from LSU’s freshman quarterback Garrett Nussmeier, that’ll cost you anywhere from $20 t0 $50 dollars, to be posted on Instagram.
“I think it’s going to be fascinating to see the social media development for these young people,” said Gulotta.
Gulotta says cashing in will come with homework.
A new state law, signed by the governor Thursday prohibits athletes from partnering with businesses like casinos, breweries, and alcoholic beverage companies. Athletes will be allowed to sign with sports agents and must go through a university-sponsored workshop focusing on financial literacy, which LSU’s assistant athletic director says is necessary.
“That’s honestly, out of all of this, the heaviest lift is making sure our student-athletes are educated and well versed in this,” said LSU Assistant Athletic Director Stephanie Rempe
Gulotta said it’ll be a learning curve.
"They can earn compensation now but we have all these rules now. We’ll have more rules. So there are going to be more infractions and more investigations,” said Gulotta.
Gulotta expects rules to eventually be challenged but in the meantime, the ball is in the court of student-athletes.
While student-athletes can now get paid for all those deals, they are still not allowed to be paid any type of salary from the university to play a sport. That does not include scholarships.
